Financial aid: over €100 for millions of residents granted

In a move aimed at providing financial relief to millions of citizens, the German government has announced plans to increase the commuter allowance and offer tax relief starting from 2026.

Currently, many citizens find the commuter allowance regulation unfair, especially with today's high fuel prices. From 2026, the allowance of 38 cents per kilometer will apply from the first kilometer, benefiting those with shorter commutes and public transport users. This change will also simplify the commuter allowance, particularly for those who travel to work by car.

For instance, a commute of 20 kilometers will result in over 100 euros more annually with the higher commuter allowance. This increase will be especially beneficial for long-distance commuters from the countryside to their workplace.

The tax relief is applicable to citizens who file a tax return annually. From next year, millions of citizens will receive tax relief, with over 100 euros provided to each qualifying citizen.

The new commuter allowance structure may lead to more equity in the distribution of benefits for different modes of transportation and distances. It's worth noting that the current commuter allowance does not cover wear and tear and repairs for those who drive to work with a car.

Examples of expenses that can be claimed include craftsmanship, work clothing, further education literature, and household items. Expenses incurred during the year can also be claimed for tax purposes.

The higher commuter allowance will benefit those with lower incomes as well. The government's decision to increase the allowance is part of its ongoing efforts to support citizens and alleviate the financial burden of the commute to work.

From the 21st kilometer, citizens currently receive 30 cents as a commuter allowance. However, this is set to change in 2026, when the commuter allowance for millions of people in Germany will increase, providing higher financial support for longer distance commutes.

Over fourteen million people claim the commuter allowance in their tax returns. The change in the commuter allowance will take effect in 2026, marking a significant step towards a more equitable and supportive system for commuters in Germany.