(2025) Increased deduction for insurance premiums from 2010

Since 2010, you can enter the full health and nursing insurance contributions for basic cover as special expenses in your tax return. The tax office deducts only four per cent from the contributions paid to statutory health insurance.

However, for privately insured individuals: You can only fully deduct the health and nursing insurance contribution if you pay the basic tariff of private health insurance. Policyholders with a different private health insurance tariff can deduct contributions up to the "basic cover" amount for tax purposes. In this case, the private health insurance company determines the exact share. However, these contributions are only recognised for tax reduction if the deductible maximum amount for "other insurance" has not yet been exhausted.

For employees, civil servants, pensioners and their partners, this is 1.900 Euro, for self-employed persons 2.800 Euro.

An employee earns 1.500 Euro gross per month. He pays around 132 Euro per month, 1.584 Euro per year, for his statutory health and nursing insurance. The tax office deducts four per cent from this amount. Thus, it recognises 1.521 Euro as special expenses. The taxpayer has therefore not yet reached his maximum amount of 1.900 Euro.

He can now also claim expenses for unemployment, liability and other insurance up to the maximum amount of 1.900 Euro. To do this, he deducts the 1.531 Euro. For the employee, this means: He can enter a further 379 Euro in insurance contributions in the income tax return.