German mileage allowance 2026: what employers and employees can claim

1Short answer

Anyone in Germany using a private vehicle for work in 2026 has two very different ways to claim the cost — and employers can reimburse it tax-free. For business trips ("Auswärtstätigkeit" under Section 9 (1) no. 4a EStG) the flat rates are 0.30 € per kilometer for cars and 0.20 € per kilometer for motorcycles, motor scooters and mopeds. For the daily commute between home and the first regular workplace ("erste Tätigkeitsstätte"), the commuter allowance ("Entfernungspauschale") under Section 9 (1) no. 4 EStG applies — 0.30 € per one-way km for the first 20 km, 0.38 € from the 21st km onward. Both rates remained unchanged for 2026 after the Steuerentlastungsgesetz 2022 extension.

The practical difference is significant. On a business trip every actual kilometer driven counts (round trip). For commuting, only the one-way distance counts. Employers and employees who fail to separate the two either lose deductions or face repayment claims during a tax audit.

2Car vs. motorcycle vs. public transport

The flat rates in Section 9 (1) no. 4a sentence 2 EStG differ by vehicle type and cover all vehicle costs — fuel, insurance, road tax, maintenance, depreciation, repairs. Ancillary travel expenses (parking fees, tolls, ferry costs) are reimbursed separately, either as work-related expenses or as reimbursable outlays.

Car (Personenkraftwagen): 0.30 € per km driven. Applies to the employee's private car. A company car is excluded — the employer already bears the vehicle cost.

Motorcycle, motor scooter, moped, small-engine bike: 0.20 € per km. Also covers registered electric scooters and light motorcycles.

Bicycle, e-bike (pedelec up to 25 km/h): no flat rate under Section 9 (1) no. 4a EStG. The commuter allowance still applies for the daily journey to work (mode-independent), but for individual business trips only actual, documented costs are deductible.

Public transport (rail, bus, long-distance train). No flat rate — the actual ticket cost applies. Employers can reimburse the full amount tax-free (Sections 3 no. 13 and no. 16 EStG). For commuting, the flat commuter allowance is often more favorable than the ticket price.

Passenger-mile bonuses no longer exist — until 2013 there was an extra 0.02 € per passenger, but this was abolished. Employees who regularly carpool colleagues can agree on an informal cost split, but without receipts it is not deductible.

3Commuter allowance vs. business trip

The single most common confusion in German mileage law is: am I on a business trip right now, or am I commuting to my first regular workplace? The two situations are treated fundamentally differently in the EStG.

Commuter allowance (Section 9 (1) no. 4 EStG)

Applies to the journey between home and the first regular workplace — the permanent place of employment assigned by the employment contract or by regular pattern. Rates: 0.30 € per one-way km for the first 20 km, 0.38 € from the 21st km onward. Important:

One-way distance only. A 30 km home-to-office distance counts as 30 km, not 60 km. The return trip is already priced in.

Shortest road distance. Only a demonstrably faster alternative route regularly used qualifies (BFH ruling VI R 46/10).

Mode-independent. Car, bicycle, walking or transit — the flat rate is the same. Public transport riders can alternatively deduct actual ticket costs if they are higher.

Annual cap of €4,500. Exception: no cap when using your own car or an employer-provided company car (Section 9 (1) no. 4 sentence 2 EStG).

Business trip / off-site activity (Section 9 (1) no. 4a EStG)

Applies to all work-related trips outside the first regular workplace: client meetings, trade fairs, temporary sites, journeys between company locations. Features:

Actual kilometers driven. Both outbound and return legs count in full.

Rates: 0.30 € (car), 0.20 € (motorcycle).

No annual cap. 20,000 km of business trips fully deduct at 6,000 €.

Tax-free employer reimbursement possible up to the flat rate (Section 3 no. 16 EStG).

4Logbook requirement or 1% rule

Once a company car enters the picture, the legal framework changes fundamentally. Mileage allowance is no longer available — instead, the private-use benefit must be taxed. The EStG (Section 6 (1) no. 4 sentences 2 and 3) offers two methods:

1% rule (flat method)

Each calendar month, 1 % of the vehicle's domestic list price (rounded down to full €100 at first registration) is taxed as a benefit in kind. Additionally: 0.03 % per one-way km for the commute between home and workplace.

Simple, no logbook required.

Often tax-inefficient at low personal use.

For electric vehicles a halved rate (0.5 %) applies up to a €70,000 list price (Section 6 (1) no. 4 sentence 2 nos. 3–5 EStG, extended by the Wachstumschancengesetz 2024).

Logbook method (Fahrtenbuch)

Every trip is recorded contemporaneously and tamper-proof: date, odometer readings at start and end, purpose, location, contact person. Only the business share of actual costs is deducted (BFH VI R 33/10).

Favorable when personal use is low (below roughly 25 % of driven distance).

Formally strict: a logbook rebuilt afterwards on a computer or with time gaps is regularly rejected by the tax office, and the 1 % rule applies retroactively.

Electronic logbooks (apps, GPS trackers) are permitted if entries are contemporaneous, immutable and auditable.

5Worked examples

Three typical situations for companies with 1 to 100 employees:

Example A — sales representative with private car

Maria works in field sales and drives her private car 18,000 km in 2026 to client meetings (business trips, not to her first workplace). She also commutes 22 km one-way on 210 working days.

Business trips: 18,000 km × 0.30 € = €5,400 — reimbursable tax-free by the employer under Section 3 no. 16 EStG.

Commute: 210 days × (20 km × 0.30 € + 2 km × 0.38 €) = 210 × (€6.00 + €0.76) = €1,419.60 as work-related expenses in the tax return.

Example B — electrician with motorcycle supplier run

An electrical installer rides his own motorcycle 30 km round trip twice a week to the wholesaler. Annual distance: 30 km × 2 × 48 weeks = 2,880 km.

2,880 km × 0.20 € = €576 tax-free reimbursement.

Alternatively deductible as work-related expenses if the employer does not reimburse.

Example C — hybrid remote worker

A software developer works 4 days remote and 1 day in the office (25 km one-way). Plus 6 client trips of 400 km each way (800 km per trip). 46 office days per year, 4,800 km of business travel total.

Commute: 46 × (20 × 0.30 € + 5 × 0.38 €) = 46 × €7.90 = €363.40 deductible.

Business trips: 4,800 km × 0.30 € = €1,440 , employer-reimbursed or deductible.

6Common mistakes

Counting both directions for the commute. The commuter allowance covers only the one-way distance, not the daily kilometers driven. The most frequent error in self-made spreadsheets.

Claiming mileage for a company car. An employee with a company car for private use is already fully covered by the employer — a mileage claim is not permissible and is reclassified as a taxable benefit during an audit.

Logbook with gaps. Even a few days without entries or a retrospectively reconstructed week cause the tax office to reject the entire logbook and retroactively apply the 1% rule (BFH VI R 35/12).

Undocumented first workplace. Without a contractual or de-facto assignment, there is no reference point for the commuter allowance. Employees working at multiple sites should have the first workplace fixed in the employment contract or a written instruction (Section 9 (4) EStG).

Ancillary travel costs bundled into the mileage. The flat rate covers vehicle costs only. Parking, tolls and ferry fees must be documented and reimbursed separately.

Ignoring rail ticket prices for long commutes. On expensive long-distance rail commutes the actual ticket cost is often higher than the flat rate — the higher amount may be claimed with receipts.

7Tax treatment

Employer-paid mileage reimbursement is tax-free and exempt from social security contributions up to the statutory flat rate (Section 3 no. 16 EStG). Any amount above that is regular wages, fully liable to income tax and social contributions.

On the annual income tax return , both the commuter allowance and business-trip mileage go into Anlage N (income from employment). Important: amounts already reimbursed tax-free by the employer reduce the deductible work-related expenses (Section 3c EStG). If you receive €5,400 in business-trip reimbursements, you cannot separately deduct the same kilometers.

Self-employed persons and freelancers apply the same rates — journeys are recorded as business expenses. When the private car is also used personally, the choice between logbook and 1% rule likewise applies, or a split is made based on the professional share of kilometers.

Retention: expense reports that feed into bookkeeping must be kept for 10 years under Section 147 of the German Fiscal Code (AO). Employees without bookkeeping obligations should keep receipts for the duration of a potential tax procedure — in practice four years after filing the return.

Sources & legal basis

Section 9 (1) nos. 4 and 4a EStG (commuter allowance, off-site activity): gesetze-im-internet.de/estg/__9.html

Section 3 no. 16 EStG (tax-free reimbursement of travel expenses): gesetze-im-internet.de/estg/__3.html

Section 6 (1) no. 4 EStG (company-car taxation, 1% rule & logbook): gesetze-im-internet.de/estg/__6.html

BMF travel-expenses circular (current version at bundesfinanzministerium.de )

Frequently asked questions

How much is the German mileage allowance in 2026? For business trips with a private car, the flat rate is 0.30 € per kilometer driven; for motorcycles, scooters and mopeds it is 0.20 € per kilometer (Section 9 (1) no. 4a EStG). For the daily commute to the first regular workplace, the commuter allowance applies: 0.30 € per one-way km for the first 20 km, 0.38 € from the 21st km onward.

What is the difference between mileage allowance and commuter allowance? The mileage allowance under Section 9 (1) no. 4a EStG applies to business trips and counts every kilometer actually driven (outbound and return) at 0.30 €/km for cars. The commuter allowance (Entfernungspauschale) under Section 9 (1) no. 4 EStG applies to the trip to the first regular workplace and counts only the one-way distance — a 30 km home-to-office distance counts as 30 km, not 60 km.

Can an employer reimburse mileage tax-free? Yes, up to the statutory flat rates (0.30 € car, 0.20 € motorcycle) the reimbursement is exempt from wage tax and social security contributions under Section 3 no. 16 EStG. Amounts above the flat rate are regular wages and fully taxable. Ancillary travel expenses (parking, tolls, ferry fees) are reimbursed separately as documented outlays.

Can I claim mileage for a company car? No. With a company car, the employer already bears the vehicle costs — an additional mileage claim is not permissible. Instead, private use must be taxed either under the 1% rule or with a contemporaneous logbook (Section 6 (1) no. 4 EStG).

When is a logbook better than the 1% rule? A logbook is tax-efficient when personal use is low — a rule of thumb is under about 25 % of annual kilometers. Condition: the logbook must be kept contemporaneously, without gaps and in a tamper-proof manner. Records reconstructed afterwards are regularly rejected by the tax office (BFH VI R 35/12), and the 1% rule then applies retroactively.