What is the home office allowance?
The home office allowance (Homeoffice-Pauschale) was introduced in response to the rise in days worked from home. Since 2023 it has been a permanent part of the Income Tax Act (§ 9 (1) sentence 3 no. 5 EStG). It gives employees tax relief when they work from home, even without a separate study.
The key facts about the allowance (as of 2025):
- €6 per day worked from home
- Up to 210 days per year
- = up to €1,260 deductible per year
The allowance counts as income-related expenses (Werbungskosten). It is offset against the standard allowance for income-related expenses of €1,230. So it only reduces your tax if your total expenses exceed that amount.
Who can use the allowance?
ALL employees can use the home office allowance for any working day they worked exclusively from home. This also includes:
- Part-time employees
- Mini-jobbers
- Self-employed people (by analogy, as business expenses)
Important: the work must have taken place entirely at home. Switching between the office and home on the same day rules out the allowance.
What proof is required?
As a rule, the home office allowance is a simplification rule. You do not need to submit receipts or photos of your workspace. Even so, it is a good idea to keep a record of your days working from home, for example through:
- Calendar entries or timesheets
- A home office agreement with the employer
- Confirmation of flexible work locations
Employers can help by providing an informal certificate stating the number of days worked from home.
Home office vs. study: what is the difference?
The home office allowance is often confused with the home study (häusliches Arbeitszimmer). The difference:
Home office allowance:
No separate room needed
Flat rate of €6 per day
Simplified application
Home study:
Requires a separate room used almost exclusively for work
Actual costs deductible up to €1,250 or without limit
Strict requirements and duty to provide proof
What does this mean for employers?
The home office allowance creates no direct obligations for employers. It is purely a tax benefit for employees.
Even so, companies should:
- inform their employees about the allowance
- issue a certificate of days worked from home on request
- check whether tax-free allowances for home office equipment (e.g. a monitor or desk) are an option
Under § 3 no. 45 EStG, employers can provide tax-free benefits in kind of up to €600 per year, for example for ergonomic work equipment.
Step by step to using the home office allowance
1. Record your days working from home Document all working days on which you worked exclusively from home.
2. Check your employee status The allowance applies to employees. Under different conditions it also applies to self-employed people.
3. Enter the allowance in your tax return You enter it in Annex N (Anlage N) of your income tax return. The allowance is automatically offset against the standard allowance for income-related expenses.
4. Keep proof ready (in case of queries) Keep voluntary proof such as calendars, home office agreements or employer confirmations ready.
Conclusion
The home office allowance is a simple way to gain a tax benefit from remote work. For employees, it brings a financial advantage with little red tape. Employers can earn extra credit by informing and supporting their teams.
A well-thought-out approach to working from home and payroll brings tax advantages. It also builds trust, satisfaction and efficiency.
