Factsheet for measure
DE-2023-1/3038
– measures in Germany
Tax deduction for work from home
Home-Office Pauschale
Background information
The war in Ukraine and the subsequent high inflation are leading to enormous price increases for heating, hot water and electricity. The new regulation of the tax deduction for working from home is part of the relief package of the federal government, which has a volume of €65 billion and was passed on 16 December 2022 with the Annual Tax Act.
Content of measure
By extending and improving the tax deduction, taxpayers can permanently claim a tax deduction amount of €6 for each calendar day on which they work exclusively from home. 210 home office days will be eligible in the future (previously, it was €5 per day for a maximum of 120 days). This means that from 2023, a maximum of €1,260 can be claimed instead of the previous €600 annually. A separate workroom is no longer a prerequisite for a tax deduction. This is intended to relieve the burden on families with smaller flats not being able to afford a separate room but still working from home.
Use of measure
Even after the COVID-19 pandemic, working from home remains a common practice. According to the Federal Statistical Office (Destatis), 23.5% of all employees in Germany worked at least occasionally from home office in 2023. This was only slightly less than in 2022 (24.0%) and 2021 (24.9%). Before the pandemic, it was only 12.8% in 2019.
Home office use also varies by age group. In 2023, the highest percentage of employees working from home was found in the 25-34 age group (26.4%), closely followed by the 35-44 age group (26.2%), possibly reflecting childcare responsibilities common in these age groups. In contrast, the use of a home office was least common among employees aged 15 to 24 (12.3%) and those aged 65 and over (13.1%).
Germany remains slightly above the EU average in terms of the prevalence of working from home. In 2021, 24.9% of all employees worked at least occasionally from home, compared with an EU average of 24.2%.
Target groups
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Workers
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Businesses
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Citizens
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Applies to all workers
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Does not apply to businesses
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Does not apply to citizens
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Actors and funding
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Actors
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Funding
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National government
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National funds
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Social partners
Social partners' role in
designing the measure
and form of involvement:
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Trade unions
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Employers' organisations
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Role
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Consulted
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Consulted
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Form
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Direct consultation outside a formal body
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Direct consultation outside a formal body
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Social partners' role in the
implementation, monitoring and assessment phase:
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Unknown
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Main level of involvement: Peak or cross-sectoral level
Involvement
Social partners contributed their comments in a public hearing on the legal changes held by the Finance Committee on 7 November 2022.
Views and reactions
The measure was welcomed by the German Trade Union Federation (DGB), though it called for an increase to €1,500. During the hearing in the German Bundestag, the employers or business federations did not explicitly comment on this particular measure.
Sources
