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Do I have to pay taxes on income from carpools?

Updated over a month ago

For a final and legally binding answer, please contact your local tax office. For tax certainty, you may request an official (income tax) ruling under § 42e of the German Income Tax Act (EStG) from the responsible tax authority.

Income earned from carpools is classified as miscellaneous income under § 22 no. 3 EStG and must be taxed if it exceeds €256 per year after deducting applicable expenses.

If your income remains below this threshold, it is tax-exempt.

You can deduct the following work-related expenses, among others:

  • Detours to pick up or drop off passengers:

    €0.30 per driven kilometer

  • Additionally per person transported for the total distance:

    €0.02 per kilometer

Drivers in a carpool can claim the commuter allowance, regardless of the means of transportation used for commuting.

  • €0.30 per one-way kilometer

  • From the 21st kilometer onward: €0.38 per kilometer

This can be deducted as a business expense in your income tax return.

Note: This is not tax advice. Please consult your tax advisor if in doubt.

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