How to Deduct the €63 Ticket from Your Taxes

• The Deutschlandticket has been available since May 1, 2023.
• The costs can be deducted if you use the €63 ticket for work purposes.
• As a job ticket, the Deutschlandticket is even cheaper and tax-free.
• With Entgeltumwandlung (salary conversion), you can save on taxes.

The Deutschlandticket, also known as the €63 ticket, offers an affordable way to travel throughout Germany. But did you know that you can also deduct the costs from your taxes? In this blog post, you'll learn everything you need to know to claim the Deutschlandticket for tax purposes and how to save even more.

Option 1: Deduct as Advertising Costs (Werbungskosten)

If you use the Deutschlandticket for your commute to work, you can deduct the costs as advertising costs in your tax return. You enter the annual costs (12 x €63 = €756) under "income-related expenses" (Werbungskosten).

Important: You must compare this with the commuter allowance (Pendlerpauschale). You can only claim whichever is higher -- not both.

Option 2: Tax-Free Job Ticket

If your employer provides the Deutschlandticket as a job ticket, it is tax-free under Section 3 Nr. 15 EStG (German Income Tax Act). This is the most advantageous option. However, the commuter allowance is then reduced accordingly.

Option 3: Entgeltumwandlung (Salary Conversion)

With Entgeltumwandlung, the ticket price is deducted from your gross salary. The employer pays a flat tax of 15% (per Section 40 Abs. 2 Satz 2 Nr. 1 EStG). The advantage: you save on income tax and social security contributions, and the commuter allowance is preserved.