Union Dues (Gewerkschaftsbeitrag)

Werbungskosten, fully deductible, no cap, effect = marginal rate × amount.

Definition

Contributions to professional representation bodies, primarily union dues, are deductible under § 16 EStG as Werbungskosten (work-related expenses). They reduce the tax base, so the saving equals the marginal rate. Unlike church contributions (Sonderausgaben) there is no statutory cap , the actual amount paid is fully deductible.

Werbungskosten vs. Sonderausgaben

Aspect
Werbungskosten
Sonderausgaben
Category
Werbungskosten (§ 16 EStG)
Sonderausgaben (§ 18 EStG)
Cap
no cap
usually € 600/yr (church)
Effect
= marginal × amount
= marginal × amount
Examples
Union, AK dues, training, work equipment
Church, donations, voluntary personal insurance

Both reduce the tax base, the actual money saved depends on the marginal rate. The € 132/yr Werbungskosten flat allowance already covers small amounts; contributions above that must be explicitly claimed.

Example: €240/yr union dues

Person pays €20/month = €240/yr in union dues. At taxable income €45,000 (40 % marginal rate): tax saving €240 × 40 % = €96. If the employer withholds and reports the dues monthly, the benefit flows through the running payroll tax, otherwise via the annual assessment.

See also

Try it in the gross-to-net calculator

Sources: § 16 EStG 1988 (RIS), BMF Werbungskosten.