Income Tax Reduction
Entering a tax-exempt amount on the income tax card so that less income tax is withheld each month.
How to proceed
- 1
Fill out the application for a reduction in income tax
The “Application for Income Tax Reduction” form via ELSTER or on paper.
- 2
Enter estimated costs
Estimate and document advertising expenses, special expenses, or extraordinary expenses.
- 3
The tax-free allowance is entered
The tax office enters the tax-free allowance into the electronic payroll tax deduction data (ELStAM).
Required documents
- Application for Income Tax ReductionMandatory
- Documentation of the claimed costsOften forgotten
Responsible authority
The authority of your main place of residence is responsible.Find authority →
Fees
Varies by case
Processing time
approx. 3 weeks
Official: max. approx. 2 months
Online application
Online possible – at the responsible authority
Common mistakes
- • Receipts/cost estimates are missing
- • The application was submitted late in the year – resulting in a lesser impact
Common reasons for rejection
- • Estimated income-related expenses below the employee's standard deduction
- • Application submitted after November 30
You can usually file an objection against a rejection.
The essentials before applying
Who is eligible?
Employees with high income-related expenses, special expenses, extraordinary expenses, or alimony payments that exceed the standard amounts.
Income limit
The limit varies by household and region – see the table at the responsible authority or in the application assistant.
Processing time
Nationwide: approx. approx. 3 weeks
Success rate
approx. 91.0 % (estimate)
Most common mistakes
- •Receipts/cost estimates are missing
- •The application was submitted late in the year – resulting in a lesser impact
Common reasons for rejection
- •Estimated income-related expenses below the employee's standard deduction
- •Application submitted after November 30
Alternatives
- Check related services in the application assistant
- Use social counselling before applying
If rejected
File a written objection within 30 days – with reasons why the decision is wrong and any missing evidence.
Related services
Questions & Answers
How long does the tax exemption apply?▼
Generally two calendar years; after that, a new application must be submitted.