🇩🇪 GERMANY TAX GUIDE • 2026

Germany Mileage Tax Calculator & Kilometergeld Guide

Calculate German business mileage deductions, understand the 2026 Pendlerpauschale, learn the difference between business travel and commuting, and keep better records of your work-related driving.

BUSINESS TRAVEL • 2026
€0.30 / km
Paushaler Kilometersatz for a car
COMMUTING • 2026
€0.38 / km
Entfernungspauschale from the first kilometre
These are different tax concepts. Do not use the commuting allowance as a universal business mileage rate.
€0.30 per driven business km for a car under the simplified travel-cost method
€0.38 per distance km for commuting to the first place of work in 2026
2026 current German tax year covered by this guide
GPS track actual journeys instead of reconstructing them later
THE IMPORTANT DISTINCTION

Germany does not have one single “mileage rate” for everything

German tax treatment depends on why the journey was made and whether you are an employee, self-employed person or business.

🚗 Business travel / Auswärtstätigkeit

When an employee travels professionally outside the home and first place of work, the tax rules allow a simplified €0.30 per actually driven kilometre for a car, instead of calculating the actual vehicle costs.

This is a driven-kilometre rule: a 50 km business journey can represent 50 km of eligible travel, not simply the one-way distance.

🏠 Home → first place of work

The Pendlerpauschale / Entfernungspauschale is different. From 2026, the allowance is €0.38 for each distance kilometre from the first kilometre.

Do not calculate this as €0.38 × the round-trip distance. The commuting allowance is based on the distance between home and the first place of work.
2026 RATES

German mileage rates at a glance

The following figures are the key rates relevant to vehicle travel and commuting in 2026.

Situation Vehicle 2026 rate What it means
Business travel / professional trip Car €0.30 / driven km Simplified alternative to actual travel costs
Business travel / professional trip Other motor vehicle €0.20 / driven km Simplified rate under the relevant tax rule
Home → first place of work Any transport mode in principle €0.38 / distance km 2026 Entfernungspauschale

Rates shown are simplified tax amounts. They do not automatically represent the amount of money you receive as a refund. A deduction reduces taxable income; the actual tax effect depends on your tax situation.

FREE CALCULATOR

Germany mileage deduction calculator

Choose the type of journey you made. The calculator uses the 2026 German rates explained above.

Estimated deductible / allowance amount €300.00
Rate used €0.30/km
Tax treatment Business travel

This calculator estimates the applicable mileage amount. It is not a tax-refund calculator. Your actual tax saving depends on your taxable income, tax rate, employment/business situation and other rules.

BUSINESS TRAVEL

How the €0.30/km business travel rule works

For professional journeys outside the home and first place of work, German tax rules allow a simplified kilometre amount instead of requiring every individual vehicle cost to be calculated.

1. Identify the business trip

Examples include travelling to a customer, supplier, business meeting, temporary work location or another professional destination.

2. Record actual kilometres

The simplified rate for a car is based on the kilometres actually driven for the professional journey.

3. Keep supporting records

Your records should allow the journey, date, destination and professional purpose to be explained if needed.

Example: You drive 180 km for a customer visit. At €0.30/km, the simplified travel-cost amount is €54.00. This is not automatically €54 paid into your bank account. It is the amount used under the applicable tax/reimbursement rules.
PENDLERPAUSCHALE

The 2026 commuting allowance: €0.38/km

Germany changed the commuting allowance for 2026. The Entfernungspauschale is now €0.38 per distance kilometre from the first kilometre.

1

Determine the one-way distance

Use the relevant distance between your home and your first place of work.

2

Count eligible working days

The calculation is generally based on days on which the route to the first place of work is relevant.

3

Multiply by €0.38

For 2026, the statutory amount is €0.38 for each distance kilometre from the first kilometre.

Example: 20 km one-way × 220 working days × €0.38 = €1,672 of commuting allowance.
The €1,672 figure is an amount relevant to the income-tax deduction calculation. It does not mean the employee receives €1,672 as a direct tax refund.
DO NOT MIX THESE RULES

Business trip vs. commuting

Question Business travel Home → first workplace
Typical example Customer meeting Daily commute
2026 car rate €0.30 / driven km €0.38 / distance km
Round trip? Actual driven journey can be relevant Allowance is based on distance, not round-trip kilometres
Purpose Professional travel expense Commuting deduction
First place of work? Journey outside it Yes
SELF-EMPLOYED & BUSINESSES

How German businesses can handle private-car mileage

German business expenses must be caused by the business activity. The tax rules therefore distinguish private journeys from business-related vehicle use.

Private vehicle used for business

According to the BMF's EÜR guidance, costs for business use of a private vehicle can generally be calculated using €0.30 per full kilometre or by using the proportionate actual costs.

  • Record the business kilometres.
  • Separate private and business journeys.
  • Keep evidence supporting the business purpose.
  • Do not automatically treat commuting as ordinary business mileage.

Actual-cost method

Instead of the simplified kilometre amount, eligible actual vehicle expenses can be allocated according to the applicable business-use rules.

  • Fuel and charging costs
  • Repairs and maintenance
  • Insurance
  • Vehicle depreciation where applicable
  • Other eligible vehicle costs

The exact treatment depends on how the vehicle is held and used. Professional tax advice is appropriate for complex business cases.

Core principle: Germany's business-expense rule starts with whether an expense is caused by the business. §4 EStG defines Betriebsausgaben as expenses caused by the business. :contentReference[oaicite:3]{index=3}
TRAVEL CLASSIFICATION

Which journeys should you track?

✓ Usually business-related

  • Customer visits
  • Supplier meetings
  • Business appointments
  • Temporary work locations
  • Trips between business locations
  • Professional events

⚠ Depends on circumstances

  • Working from different locations
  • Multiple workplaces
  • Temporary assignments
  • Home office + external meetings
  • Mixed personal/business journeys

✕ Do not simply classify as business

  • Purely private shopping
  • Personal appointments
  • Private weekend trips
  • Family/personal travel
  • Ordinary commuting when the commuting rule applies
EMPLOYEE REIMBURSEMENT

Does your employer have to pay €0.30/km?

Not necessarily. The tax kilometre amount and an employer's internal reimbursement policy are related but are not the same thing.

What the €0.30/km figure means

For professional travel, the German tax rules permit a simplified kilometre amount of €0.30/km for a car. An employer may use the relevant rules when reimbursing qualifying business travel, but you should not assume that every employer is required to pay exactly €0.30/km in every circumstance.

Always check your employment contract, company travel policy and payroll rules.

Why mileage records matter

If your employer requires a travel expense report, a clean record can make it much easier to document:

Date of journey
Start and destination
Business purpose
Actual kilometres
Customer or meeting reference
Supporting documentation
WHY MILEAGE TRACKING MATTERS

The tax rule tells you what can qualify. Your records show what actually happened.

One of the biggest practical problems is not knowing the mileage rule. It is reconstructing months of journeys from memory.

Without a proper mileage record

  • You may forget business journeys.
  • You may underestimate your professional kilometres.
  • You may spend hours reconstructing trips.
  • You may lack a clear explanation for individual journeys.
  • You may mix private and professional driving.

With FirstMileage

  • Live GPS mileage tracking
  • Actual journey history
  • Distance records
  • Business/private trip organization
  • Journey notes and purposes
  • Clean mileage reports
FirstMileage does not decide what is tax-deductible. German tax law and your individual circumstances determine that. FirstMileage's job is to make your driving history easier to record, organize and report.
FIRSTMILEAGE WORKFLOW

Turn everyday driving into a clean mileage record

01 — Drive

FirstMileage can track your journeys using GPS so your mileage record is created while you drive.

02 — Classify

Organize journeys according to their purpose and distinguish professional travel from private driving.

03 — Report

Keep your mileage history organized and generate useful reports for your own records, accountant or employer.

RECORD KEEPING

What should your mileage records contain?

The more clearly a journey can be explained, the easier it is to substantiate why it was work-related.

Date and time
Starting point
Destination
Distance travelled
Business purpose
Customer / project reference where useful
Private vs. professional classification
Related receipts where relevant
GPS tracking is supporting evidence and record-keeping technology. It is not an automatic guarantee that a journey is tax-deductible. Always apply the German tax rules to the facts of the journey.
IMPORTANT

A €1,000 deduction does NOT mean a €1,000 refund

Tax deduction

A deductible amount reduces the income that is subject to tax, subject to the applicable German rules.

Example: a €1,000 deductible amount does not automatically mean €1,000 returned to you.

Actual tax saving

The eventual tax effect depends on your personal marginal tax situation and other factors.

Think of mileage as a potentially valuable tax deduction or reimbursement basis — not as guaranteed cash back.
COMMON MISTAKES

7 mileage mistakes to avoid in Germany

01. Using €0.38 for every business trip

€0.38 is the 2026 commuting distance allowance, not the general business-travel rate for a car.

02. Doubling the Pendlerpauschale

The commuting allowance uses the relevant one-way distance, not the full round-trip mileage.

03. Forgetting the business purpose

A mileage number without context is much less useful than a documented professional journey.

04. Mixing private and business travel

Keep professional journeys distinguishable from private driving.

05. Reconstructing everything at year-end

Memory is a poor mileage database. Record journeys continuously.

06. Treating the calculator as a tax return

A mileage calculator estimates an amount; it does not calculate your complete German tax liability.

FAQ

Germany mileage tax questions

For professional travel outside the home and first place of work, the simplified rate for a car is €0.30 per actually driven kilometre. Other motor vehicles can use €0.20/km under the relevant simplified rule.
From 1 January 2026, the Entfernungspauschale is €0.38 per distance kilometre from the first kilometre for the route between home and the first place of work.
Not as a universal rule. €0.38/km is the 2026 commuting allowance. Professional trips outside the first place of work are subject to a different travel-cost rule.
No. It is a simplified amount used for qualifying professional travel. A deduction or reimbursement amount is not the same thing as the final tax refund.
German tax guidance for the EÜR states that costs for business use of a private vehicle can generally be calculated using €0.30 per full kilometre or proportionate actual costs, while journeys between home and the first business establishment are treated separately.
No. The Entfernungspauschale is based on the relevant distance between the home and first place of work rather than simply multiplying a round-trip distance by the allowance.
Maintaining a contemporaneous mileage history is a practical way to document professional driving and reduce the need to reconstruct journeys later.
No. FirstMileage is a mileage tracking and reporting tool. It records journeys and helps organize mileage information; it does not replace your German tax return or tax adviser.
No. FirstMileage is an independent mileage tracking service. German tax treatment is determined by the applicable tax law and official guidance.
Keep the professional journeys clearly identifiable and apply the relevant German rules to the business/private split. Do not simply treat all vehicle kilometres as business kilometres.
OFFICIAL SOURCES

German tax sources used for this guide

Tax rules can depend on the employee's exact work arrangement, first place of work, vehicle ownership, reimbursement policy and business structure. This page is educational information, not individual tax advice.

Stop reconstructing your mileage from memory

Track your actual journeys with FirstMileage, organize business and private driving, and keep a clean mileage history ready for your records, accountant or employer.

Start using FirstMileage →