How to Claim the €63 Ticket on Your Tax Return

• The Deutschlandticket has been available since May 1, 2023.
• If you use the €63 ticket for work-related travel, the costs may be tax-deductible.
• As an employer-provided job ticket, the Deutschlandticket can be completely tax-free.
• Salary conversion (Entgeltumwandlung) offers another route to meaningful tax savings.

The Deutschlandticket — also known as the €63 ticket — makes traveling across Germany more affordable. What many people don't realize is that it can also reduce your tax burden. Here's a practical breakdown of how to make the most of it at tax time.

Option 1: Income-Related Expenses (Werbungskosten)

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

Important: You must weigh this against the standard commuter allowance (Pendlerpauschale). Only the higher of the two can be claimed — you cannot combine both.

Option 2: Tax-Free Job Ticket

When an employer provides the Deutschlandticket as a job ticket, it qualifies as tax-free under Section 3 Nr. 15 EStG (German Income Tax Act). This is the most advantageous scenario financially. Note, however, that the commuter allowance is reduced proportionally in return.

Option 3: Salary Conversion (Entgeltumwandlung)

With salary conversion, the cost of the ticket is subtracted from your gross salary before tax. The employer applies a flat rate of 15% tax (per Section 40 Abs. 2 Satz 2 Nr. 1 EStG). The upside: you pay less income tax and lower social security contributions — and, crucially, the commuter allowance remains intact.