Mobility premium must be applied for!

Low earners whose taxable income is below the basic allowance (12.096 Euro for single persons, 24.192 Euro for married couples) regularly pay no taxes and therefore cannot benefit from this increase. They receive a so-called "mobility premium for low earners".

Since a higher deduction for work-related expenses or business expenses does not provide them with a corresponding tax relief, they receive 14 percent of the increased commuter allowance from the 21st kilometre. However, those with a shorter commute receive nothing.

From 01.01.2022, low earners have the option to choose a mobility premium of 14 percent of the increased allowance of 38 cents from the 21st kilometre instead of the increased commuter allowance. The mobility premium amounts to 14 percent of the increased commuter allowance of 38 cents, which is only granted from the 21st kilometre. This means that commuters receive 5.32 cents per km from the tax office as a premium from the 21st kilometre (applicable from 2022).

The mobility premium is granted to low earners if the travel costs exceed the employee allowance of 1.230 Euro. It also applies to weekly family journeys home in the case of double housekeeping. The tax office determines the mobility premium and pays it directly to the taxpayer, provided at least 10 Euro is incurred. Applying for the mobility premium can be particularly worthwhile for trainees with long distances between their home and training location, as their taxable income is often below the basic allowance.

Note: Low earners are generally not required to submit a tax return. However, the mobility premium cannot be obtained without a tax return. For this purpose, a tax return must be submitted with the new "Mobility Premium" form (§ 105 para. 1 EStG, amended by the "Annual Tax Act 2020" of 21.12.2020).