How are car pools treated for tax purposes?

If you were a carpool participant, the commuter allowance for passengers is generally limited to a maximum of 4,500 Euro. However, this limit does not apply to days when you used your own car.

Therefore, provide the relevant details separately for the days you drove your own car and for the days you were a passenger. The following applies to determining the distance: Each carpool participant enters the shortest usable road connection as the distance between home and first place of work / meeting point / extensive work area; detours to pick up passengers are not taken into account.

Special regulation for spouses / civil partners:
Spouses / civil partners who travel to work together are each entitled to the commuter allowance individually. This applies even if they work for the same employer.

How are car pools treated for tax purposes?

What is the travel allowance?

For the commute between home and primary workplace, you can claim a travel allowance (commuter allowance) as work-related expenses, regardless of how you travel to your primary workplace. This allowance is 30 cents for each full kilometre of distance, or 38 cents from the 21st kilometre onwards.

For determining the distance between home and primary workplace, the shortest road route is generally decisive. It does not matter which means of transport you actually used. If you use a car, you can enter a route other than the shortest road route if it is obviously more convenient and you regularly used it for the commute between home and primary workplace.

Please note that only the one-way and shortest route to the workplace is considered as work-related expenses. This means not the round trip, and not multiple trips per day.

The travel allowance is generally limited to a maximum amount of 4,500 Euro. However, if you use your own car or a car provided for your use (e.g. company car), the maximum amount of 4,500 Euro does not apply.

The travel allowance can be claimed for the commute to the primary workplace only once per working day, even if you make the journey between home and primary workplace several times a day.

What is the travel allowance?

Am I also entitled to the travel allowance if I use a company car?

Am I entitled to the travel allowance if I use a company car?

Yes, you can receive the travel allowance even if you use a company car for commuting. However, there are some special conditions to consider:

Most favourable route:

Even if your employer uses the shortest route to calculate the taxable benefit, you may specify a longer route in your tax return if it is more favourable in terms of traffic and you use it regularly.

Surcharge for commuting:

For journeys between your home and primary workplace, you must pay tax on a surcharge in addition to the private usage value of 1% of the list price. This amounts to 0.03% of the list price per kilometre of distance per month. In return, you can deduct the travel allowance of 0.30 Euro or 0.38 Euro per kilometre as income-related expenses, just like any other employee.

Taxation by the employer:

If your employer taxes the company car at a flat rate of 15%, you must deduct the flat-rate taxed amount from the income-related expenses claimed. Only the remaining amount can be deducted as income-related expenses.

Simplification rule:

Even if the employer only uses 180 days to calculate the benefit, you can specify 220 days for your income-related expense deduction, for example.

Am I also entitled to the travel allowance if I use a company car?

Which route is relevant for the distance in kilometres?

For the travel allowance, the shortest usable road route between your home and your primary place of work is decisive. The primary place of work is the fixed workplace permanently assigned to the employee by the employer. This means that the employee works there regularly and permanently.

A longer route can be recognised if it is obviously more convenient in terms of traffic – that is, if you can reach your workplace faster and more punctually.

Criteria for more convenient routes:

• The time saving should be at least 10% of the time required for the shortest route (BFH ruling of 16.11.2011).
• A route can also be more convenient without significant time savings, e.g. due to better roads, fewer traffic lights or less traffic.
• Health reasons, such as fear of heights on high bridges, can also justify choosing a longer route. However, the resulting costs cannot be deducted as extraordinary expenses.

Examples:

• Short route (25 km): 230 days x 20 km x 0.30 Euro + 230 days x 5 km x 0.38 Euro = 1.817 Euro.
• Longer route (42 km): 230 days x 20 km x 0.30 Euro + 230 days x 22 km x 0.38 Euro = 3.202,80 Euro.

The tax office must be convinced of the regular time saving in this case.

Important notes:

• Multiple modes of transport: Even if you combine different modes of transport (e.g. bicycle and public transport), the shortest road route applies.
• Multiple journeys: The allowance can only be used once per day, even for multiple journeys to the workplace.
• Long-distance commuters: From the 21st kilometre, the allowance was increased until 2026:
  • Since 2021: 35 cents
  • Since 2022: 38 cents

Current ruling:

The Lower Saxony Finance Court confirmed in April 2024 that the longer route must be regularly more convenient in terms of traffic. It is not sufficient if it is only faster in the event of extreme traffic jams (ruling of 3.4.2024, 9 K 117/21).

Which route is relevant for the distance in kilometres?

Was ist die Nichtaufgriffsgrenze?

Viele Finanzbeamte werden vielleicht bestreiten, dass es sie gibt. Und der Steuerzahler kann sich auch nicht darauf verlassen, dass er davon profitieren kann, denn einen Rechtsanspruch auf die Nichtaufgriffsgrenze gibt es nicht.

Nichtaufgriffsgrenzen sind Angaben – in der Regel Kleinbeträge – in der Steuererklärung, bei der Finanzbeamte meist nicht so genau hinschauen und diese ohne Belege akzeptieren.

Hier einige Beispiele:

• Arbeitstage für Entfernungspauschale: Bei einer 5-Tage-Woche können Sie 230 Arbeitstage pro Jahr und bei einer 6-Tage-Woche 280 Tage angeben.
• Arbeitsmittel: In der Regel können Sie Kosten bis zu 110 Euro für die Anschaffung und Pflege von Arbeitsmitteln (Kauf und Reinigung von Berufskleidung) ohne Belege in Ihrer Steuererklärung angeben.

Was ist die Nichtaufgriffsgrenze?

How is the primary place of work defined?

The primary place of work is the fixed business location of the employer, an affiliated company, or a third party designated by the employer to which you are permanently assigned by the employer.

The permanent assignment is determined by the service or employment regulations and the agreements or instructions from the employer that supplement them. A permanent assignment is particularly assumed if you are to work indefinitely, for the duration of the employment relationship, or for a period of 48 months.

If there is no permanent assignment or if it is not clear, the primary place of work is the business location where you are typically expected to work on a daily basis, two full days per week, or at least one third of your agreed regular working hours on a permanent basis. There can be at most one primary place of work per employment relationship.

How is the primary place of work defined?

What can be deducted for employees without a primary place of work?

Employees without a fixed primary place of work often need to meet at a collection point to start their work. Examples include truck drivers, coach drivers, bus drivers, tram drivers, taxi drivers, train drivers, and train attendants. These collection points can be car parks or depots.

What is tax-deductible?

• Journeys between home and collection point: These journeys can only be claimed using the commuter allowance.
• Meal allowance: Despite the commuter allowance, employees without a fixed place of work can deduct meal allowances as business expenses. Since no primary place of work is assumed, every journey is considered a business trip – without the three-month limit.
• Overnight allowance for truck drivers: Truck drivers can also claim an overnight allowance of 9 euros per calendar day (until 2023: 8 euros) if they stay overnight during a business trip. This applies to arrival and departure days as well as for 24-hour absences in Germany or abroad.

Court rulings on the primary place of work

• Train drivers and postal workers: According to the Federal Fiscal Court (BFH), train drivers of a company railway and postal workers have a primary place of work and not a large-scale work area (BFH rulings of 1.10.2020, VI R 36/18 and 30.9.2020, VI R 10/19, VI R 11/19 and VI R 12/19).
• Refuse collectors: Refuse collectors who only use the depot for tour planning and vehicle collection do not have a primary place of work. They can claim meal allowances of 14 euros per day if they are absent for more than 8 hours (BFH ruling of 2.9.2021, VI R 25/19).

What can be deducted for employees without a primary place of work?

When should I provide proof of travel by public transport?

When using public transport, such as bus, train, or tram, you can also claim the travel allowance of 30 cents per kilometre (or 38 cents from the 21st kilometre). This is generally beneficial, as the costs are usually lower. However, if the actual costs for public transport over the calendar year are higher than the travel allowance, you can claim these. The total deductible amount is limited to 4,500 Euro.

When should I provide proof of travel by public transport?

What is a collective point?

If there is no main place of work and the employer requires the employee to be present permanently - typically on a daily basis - at a specified location (e.g. the bus depot, the employer's premises, a car park) to start work or visit work sites from there, the employee's journeys from home to this meeting point are treated as journeys to a main place of work, i.e. only considered with the travel allowance.

What is a collective point?

What is an extensive work area?

A large-scale work area exists when an employee works over a designated area without visiting a fixed operational facility of the employer, an affiliated company, or a specific third party.

Treatment of travel expenses

If an employee (e.g. a forestry worker) regularly works in a large-scale work area, journeys from home to the nearest access point of the area are treated like journeys to the first place of work. They are taken into account with the distance allowance.

If the work area is accessed via different entrances, only the shortest distance to the nearest entrance counts.

Journeys within the area

Journeys within the large-scale area or to more distant entrances can be claimed under "travel expenses". Alternatively to stating the actual costs, the following kilometre allowances apply:

• Car: 30 cents/km
• Other motor vehicles (e.g. motorcycle): 20 cents/km

Current rulings on large-scale work areas

1. Works railway locomotive drivers

A works railway locomotive driver does not have a large-scale work area, as his area of operation is considered the first place of work.
(BFH ruling of 01.10.2020, VI R 36/18)

2. Paramedics and postal workers

Paramedics and postal workers also do not have a large-scale work area. They are assigned a first place of work.
(BFH rulings of 30.09.2020, VI R 10/19, VI R 11/19, VI R 12/19)

3. Refuse collectors

Refuse collectors who use the depot only for vehicle collection or administrative tasks do not have a first place of work there. They can claim meal allowances (14 Euro per day for absences > 8 hours) for tax purposes.
(BFH ruling of 02.09.2021, VI R 25/19)

4. Dock workers

A dock worker does not have a large-scale work area if he is regularly assigned to specific work locations.
(BFH ruling of 15.02.2023, VI R 4/21)

5. Port of Bremerhaven and senior drivers

• The port area of Bremerhaven is not a large first place of work, unless it is fully used by the employer.
  (Lower Saxony FG, ruling of 02.09.2022, 4 K 149/21)
• A "senior driver" has a first place of work if he regularly uses a company building for more than just minor tasks.
  (Lower Saxony FG, ruling of 04.09.2024, 4 K 48/24)

What is an extensive work area?

What can be deducted for an extensive work area?

A large-scale work area exists when the contractually agreed work is performed not within a fixed business location, but over a specific area.

Typical examples include:

• Factory premises
• Exhibition grounds
• Barracks grounds
• Airport grounds
• Shipyard premises

First place of work or off-site work?

The key factor is whether the entire area is considered the first place of work or if it is off-site work. The tax treatment differs:

• First place of work: The nearest work location within the area is considered a fixed place of work.
• Off-site work: Applies if work is carried out at various changing locations within the area.

What is tax-deductible?

• The nearest work location in the large-scale work area is considered the "first place of work" and allows for the deduction of the distance allowance (30 cents per kilometre; 38 cents from the 21st kilometre).
• All other journeys within the large-scale work area can be deducted with the business travel allowance (30 cents per kilometre driven) or the actual costs, or reimbursed tax-free.
• Absences of more than 8 hours allow for the deduction of meal allowances or tax-free reimbursements, with no time limit (no three-month rule).
• For journeys with a company car to the nearest work location, a surcharge value must be taxed as wages (monthly 0.03% of the list price per kilometre). For other journeys, no taxation of the usage value is required, but no deduction of income-related expenses is possible either.

Current rulings and examples

The tax classification depends heavily on the individual case. Here are some relevant decisions by the Federal Fiscal Court (BFH) and the tax courts:

Conclusion: For work on a large-scale site, the decisive factor for tax purposes is whether there is a first place of work or not.

This affects, among other things:

• the type of travel expense deduction (distance allowance vs. business travel allowance)
• the possibility of claiming meal allowances
• the tax treatment of company car use

Tip: Regularly check new BFH rulings – the classification may change depending on the job and workplace.

What can be deducted for an extensive work area?

What is "collective transport"?

If you were transported free of charge or at a reduced rate by your employer to the first place of work / meeting point / extensive work area (collective transport), you cannot claim a travel allowance for the distance of the collective transport.

However, if you paid a fee to your employer for the collective transport, please enter the expenses under "Other income-related expenses".

What is "collective transport"?

Can I claim expenses for "collective transport"?

Collective transport is provided when your employer provides a vehicle for commuting between home and work or if you travel by bus, for example. Whether you can claim travel expenses depends on whether you actually incurred any costs or if the journeys were free of charge for you. If you did not make any contributions, you are not entitled to a travel allowance.

If you had to bear a share of the costs for the collective transport, you can claim this amount with proof. The travel allowance is not applicable here.

Can I claim expenses for "collective transport"?

Can ferry costs be claimed for tax purposes?

For employees who use a ferry connection to travel to work, the ferry route must not be included in the distance. Therefore, the commuter allowance cannot be claimed for this part of the journey. However, the full ferry costs can be deducted as additional work-related expenses. Enter these expenses in Form N under "other work-related expenses".

Can ferry costs be claimed for tax purposes?

How can ferry costs be claimed for tax purposes?

For employees who use a ferry connection to travel to work, the ferry route must not be included in the distance. Therefore, the travel allowance cannot be claimed for this part of the journey. However, the ferry costs can be fully deducted as business expenses. Enter these expenses in Form N under "other business expenses".

How can ferry costs be claimed for tax purposes?

How can flight costs be claimed for tax purposes?

If you commute by plane, you must calculate the travel expenses as follows:

• For the travel allowance, claim the distance between your home and the departure airport plus the distance between the destination airport and your workplace.
• You can also declare the expenses for your flight tickets in your tax return.

How can flight costs be claimed for tax purposes?

Are motorway tolls also deductible?

Travel between home and work can be deducted for tax purposes using the commuting allowance. In 2014, the former term "regular workplace" was replaced by "primary workplace". The commuting allowance is available to you regardless of the means of transport used. The commuting allowance covers all expenses incurred for travel between home and the primary workplace.

Toll fees for using motorways or tunnels are also covered by the commuting allowance and cannot be deducted additionally. For the calculation of the commuting allowance, the shortest road connection must be used, even if it is subject to tolls (BFH ruling of 24.9.2013, VI R 20/13).

Are motorway tolls also deductible?