Starting from January 1, 2026, employees in Germany will benefit from a higher tax deduction for commuting, facilitating savings on income tax.

The German government has decided to increase the Pendlerpauschale, the tax deduction for commuters, starting from January 1, 2026. This allows employees to deduct a flat annual amount of €1,230 for transportation expenses, regardless of the means used, except for flights. The new value will help more employees exceed the deduction threshold and reduce their taxes. While some experts believe this encourages the use of personal cars, others emphasize that the deduction does not discriminate against means of transport, promoting environmentally friendly behaviors.