Commuter Allowance Calculator calculate tax saving.

The commuter allowance (also called distance allowance) is a flat amount that employees can deduct from their taxes as income-related expenses for their commute. It applies regardless of which mode of transport you use – whether car, public transport, bike or on foot.

Important: only the one-way distance between home and workplace counts. The return trip is not counted additionally. The tax office generally recognises the shortest road connection – even if you travel by bike or public transport.

When using public transport or as a passenger the allowance is capped at €4,500 per year. This limit is waived only when you use your own (or a company-provided) car — it does apply to motorbikes and scooters, as the law exempts only motor cars (§ 9 (1) sentence 3 no. 4 sentence 2 EStG). With public transport you can alternatively claim the actual costs if they are higher than the allowance.

With an expensive annual ticket (e.g. the Deutschlandticket or regional monthly tickets) it can be worth claiming the actual costs instead of the allowance. The tax office accepts the higher costs if you can prove them.

The distance allowance counts towards your income-related expenses. The employee lump sum is €1,230 in 2026. The commuter allowance only has a tax effect once your total income-related expenses exceed this amount. Other income-related expenses can include, for example, work equipment, further training or a home office.