What can you deduct in Germany?
A clear overview of common tax-deductible expenses in Germany — from work costs and home office to childcare, insurance, donations and medical expenses.
Plain-English guide for expats, employees, families and international professionals preparing a German tax return.
You can usually deduct costs that are real, relevant and documented.
Germany allows many deductions, but the cost must fit the right category. A laptop for work, childcare invoice, health expense or donation receipt can matter — a random private purchase usually does not.
Common tax-deductible expenses in Germany.
Use this as a map. The exact deductibility, limits and calculation can depend on the tax year and your personal situation.
| Category | Typical examples | What to keep |
|---|---|---|
| Work-related expenses | Commuting, work equipment, job applications, professional literature, work travel, training. | Receipts, invoices, travel records, employer confirmations. |
| Home office | Home office days, dedicated office room, desk, chair, monitor, work-related internet portion. | Work calendar, invoices, rental data, notes about business use. |
| Insurance and pension | Health insurance, long-term care insurance, pension-related contributions, selected protection products. | Annual certificates, payment summaries, policy documents. |
| Medical expenses | Treatments, prescriptions, dental costs, aids, unreimbursed health costs. | Invoices, prescriptions, insurance reimbursement statements. |
| Childcare and family | Daycare, kindergarten, childminders, after-school supervision and family-related tax details. | Contracts, invoices, bank transfer confirmations, child details. |
| Household services | Cleaning, gardening, tradespeople, repairs, maintenance in your household. | Invoice plus bank transfer proof. Avoid cash payments. |
| Donations | Donations to eligible charitable, religious or public-benefit organizations. | Donation receipt or simplified payment proof where allowed. |
| Moving and relocation | Job-related move, relocation costs, transport, agency costs, travel related to the move. | Invoices, employer letters, relocation agreement, payment proof. |
Start with costs connected to your job.
For employees, work-related expenses are often the first and most important deduction category. The German term is Werbungskosten.
Commuting
Regular travel between home and your first place of work can be relevant. Keep work location details and commuting records if your situation is not straightforward.
Work equipment
Laptop, monitor, desk chair, software, tools or professional books may qualify when the work connection is clear and private use is handled correctly.
Training and development
Courses, certifications, language training or seminars can be relevant if they support your current or future professional activity.
Do not miss private-life deductions.
A German tax return is not only about employment. Family, household, health and donation-related costs can also matter.
Insurance and pension
Health insurance, long-term care insurance and pension-related contributions are important areas. Keep annual certificates and payment summaries.
Medical expenses
Unreimbursed medical costs may be relevant under special rules. Keep invoices, prescriptions and reimbursement letters from insurers.
Childcare
Daycare, kindergarten and childminder costs should be documented separately from food, hobbies, tutoring or school material.
Household services
Cleaning, gardening, maintenance and tradespeople can be relevant. The invoice and bank transfer proof are especially important.
Donations
Donations to eligible organizations may be deductible. Keep official donation receipts or accepted payment proof.
Moving costs
Relocation can be relevant if the move is job-related. Keep employer letters, moving invoices and payment proof.
How to document deductible expenses.
The tax office does not need your life story. It needs enough information to understand the expense, the payment and the tax connection.
Keep the invoice or receipt.
It should show what you bought, who provided it, when it was purchased and the amount paid.
Keep payment proof.
Bank statements, card payments or transfer confirmations are helpful. For household services, non-cash payment proof is particularly important.
Write a short note for mixed-use items.
For items like phones, laptops or internet, note how the expense is connected to work and whether there is private use.
Sort by tax category.
Create folders such as work, home office, childcare, medical, insurance, donations and household services. This makes filing much easier.
Red flags before claiming a deduction.
Deductions are useful, but weak or unrealistic claims can create problems.
The cost is mainly private.
A private purchase does not become deductible just because it is useful, convenient or expensive.
There is no proof.
Without invoice, payment proof or a clear explanation, even a legitimate expense can become difficult to claim.
You use outdated amounts.
Flat rates, thresholds and limits can change. Check current rules before publishing fixed euro amounts or filing a return.
Build your deduction folder during the year.
The easiest tax return is the one you prepare before December. Save receipts by category, document mixed-use items and verify unclear cases with tax software, ELSTER, a Lohnsteuerhilfeverein or a certified tax advisor.
Disclaimer: This article provides general educational information for people moving to, living in or planning their future in Germany. It does not constitute tax, legal, financial, insurance or immigration advice. Tax rules are complex and can change. For individual decisions, speak with a certified tax advisor or another qualified professional who can assess your personal situation.