Commuter Allowance (Pendlerpauschale & Pendlereuro)

Definition

The Pendlerpauschale (commuter allowance) is a flat tax deduction for the trip between home and the workplace (§16 Abs. 1 Z 6 EStG). It reduces the taxable income base, not the tax bill directly. Two flavours: Kleine Pauschale (small), when using public transport is reasonable; Große Pauschale (large), when public transport is unreasonable (commute too long, physical disability, no service). Amounts step with distance (from 2 km / 20 km) and scale with how many days per month you actually commute (11 / 8 / 4 days).

Pendlereuro (additional)

On top of the Pauschale, anyone receiving it also gets the Pendlereuro under §33 Abs. 5 Z 4 EStG. It works differently than the Pauschale: it's an Absetzbetrag (tax credit), so it reduces the tax bill directly rather than the taxable base. 2026: € 6 per km one-way per year. At 30 km that's an additional € 180/year on top of the Pauschale savings.

Allowance (monthly values at 11 commuting days)

Example: 30 km, 11 commuting days, public transport unreasonable

Große Pauschale 20 to 40 km: € 123/month = € 1.476/year. At a ~40 % marginal rate that saves ~€ 590/year of income tax. Plus Pendlereuro: 30 km × 6 € = € 180/year straight off the tax bill. Combined effect: roughly € 770/year net gain for someone on the second tariff bracket.

See also

• Einkommensteuertarif (§33 EStG) , progressive brackets, the Pauschale reduces the base linearly, the take-home effect depends on the marginal rate.