(2025) What are income-related expenses?

Business expenses include all costs incurred in direct connection with your professional activity. You can claim these costs for tax purposes, provided they have not already been reimbursed tax-free by your employer.

These include, among others:

• Travel expenses to work (commuting allowance)
• Professional association (e.g. union fees)
• Work equipment
• Home office
• Training costs
• Application costs
• Relocation costs
• Double household management
• Travel expenses for off-site work
• Account management fees
• Tax consultancy costs

If you do not claim the business expenses individually, the tax office - and also Lohnsteuer kompakt - will automatically apply a flat rate of 1.230 Euro. If the claimed costs are below the flat rate, the flat rate will also be applied.