Approved mileage rates for business trips
As an employer, you can pay an employee for using a personal vehicle for business trips. Business trips are trips to carry out business outside the place of work. You can pay your employee an approved amount of tax-exempt mileage allowance. This is regulated in Section 9, paragraph 4 a of the German Income Tax Act (EStG) and Section 5 of the Federal Travel Expenses Act (BRKG).
The approved amount of tax-exempt mileage allowance for business journeys:
| Car | 0,30 euro / km |
| Motorbike, moped or scooter | 0,20 euro / km |
The maximum amount per trip is 130 euros. You are allowed to pay an employee a higher amount but everything above the approved mileage allowance will be considered taxable income.
Approved mileage rates for commute
An employer can also pay an employee for their commute between the place of residence and the first place of work. You are allowed to pay an employee a higher amount but everything above the approved mileage allowance will be considered taxable income. This is regulated in Section 9, paragraph 4 of the German Income Tax Act (EStG)
The approved amount of tax-exempt mileage allowance for commute:
| First 20 kilometer per one-way trip | Above 20 kilometer per one-way trip |
| 0,30 euro / km | 0,38 euro / km |
Additional notes on the approved mileage rates for commute:
- The increased amount of 0,38 euro per km as of the 21st kilometer is applicable from January 1st, 2022 until 2026;
- The commuter allowance is only applicable for days the employee commuted to the place of work;
- The maximum is 4500 euros per calendar year. A higher maximum of 4500 euros can be applied if the employee uses their car or a car that has been made available for him to use.
