What work expenses (Werbungskosten) are deductible in Germany?

Werbungskosten are income-related expenses that employees can deduct from their taxable income. The German tax system automatically grants a flat-rate deduction of €1,230 per year (as of 2024) without any proof required. If your actual Werbungskosten exceed this amount, you can claim the higher figure with supporting documentation.

Deductible Werbungskosten include: the Pendlerpauschale (commuting allowance), costs of work tools and equipment, home office expenses (up to €1,260 per year via the flat-rate or actual costs for a dedicated room), professional books and subscriptions, union membership fees, professional training and education costs directly related to your current role, work clothing that is specific to the profession (not general clothing), and job application costs.

You cannot deduct clothing that is also suitable for everyday wear, commuting in reverse (travel from home to work only, not leisure trips), or meals unless you are travelling for work and the absence from home meets the minimum duration. Work phone costs are deductible but only the business-use proportion. Keeping receipts for all expenses above the flat-rate is essential, as the Finanzamt may request proof when processing your return.