Lohnsteuer-Freibetrag 2027: lower your monthly wage tax instead of waiting for the refund

Short answer: If you expect deductible costs in 2027 (for example a long commute, child-care costs or maintenance payments), you can ask your Finanzamt to record a tax-free allowance (Freibetrag) in your electronic wage-tax data (ELStAM). Your employer then withholds less Lohnsteuer every month. Applications for 2027 are possible from 1 November 2026. If you apply in January 2027 at the latest, it can apply from 1 January 2027. Later applications apply from the following month. For work costs, special expenses and extraordinary burdens the total must be above €600, and work costs only count above the €1,230 employee lump sum. In most cases a Freibetrag makes a tax return mandatory.

General information, not individual tax advice. Rules quoted from the Einkommensteuergesetz and official ELSTER and Finanzamt pages as of 3 November 2026. For your own case, ask your Finanzamt, a Lohnsteuerhilfeverein or a Steuerberater.

How it works

Normally your costs only reduce your tax when you file the annual return (you get a refund the year after). With a Lohnsteuer-Ermäßigung the Finanzamt spreads the expected costs over the months as a monthly allowance, so your employer withholds less tax right away (§ 39a EStG). Your later refund is correspondingly smaller, because the costs were already taken into account.

Key dates

What	Rule	Source
Earliest application for 2027	1 November 2026	§ 39a (2) EStG
Last application for 2027	30 November 2027	§ 39a (2) EStG
Effective from 1 January 2027	if applied for in January 2027 at the latest	§ 39a (2) EStG, Finanzämter NRW
Applied for later	spread over the months after the application	§ 39a (2) EStG
Validity	up to 2 calendar years if you choose	§ 39a (1) EStG, ELSTER help
2026 allowance still possible	until 30 November 2026	Finanzämter NRW

What can be entered (examples)

Category	Examples	Counts towards the €600 threshold?
Work costs (Werbungskosten)	commuting (€0.38 per km one way), work equipment, training, home-office day rate	yes, only the part above €1,230
Special expenses (Sonderausgaben)	child-care costs (80%, max. €4,800 per child), school fees (30%, max. €5,000), maintenance to an ex-spouse with consent (Anlage U)	yes, above the €36 lump sum (€72 for married couples)
Extraordinary burdens	illness costs above the reasonable burden, support for needy relatives	yes
Not subject to the €600 threshold	disability lump sums, the single-parent increase for further children	no
Household services / tradespeople (§ 35a)	entered at four times the tax reduction	listed separately on the form
Losses from other income	e.g. rental losses	yes, via the simplified annex / other income

Figures from the ELSTER help for the 2027 application and § 9a, § 10 and § 10c EStG.

How to apply

Log in to Mein ELSTER and choose "Antrag auf Lohnsteuer-Ermäßigung und zu den Lohnsteuerabzugsmerkmalen" for 2027.
Always fill in the main form (Hauptvordruck). Add the annexes you need: Werbungskosten, Sonderausgaben, Kind, Außergewöhnliche Belastungen, Haushaltsnahe Aufwendungen, or Steuerklassenwechsel.
Same allowance as last year and nothing major has changed? Use the Anlage Vereinfachter Antrag / Sonstiges.
Tick the two-year option if you want the allowance for 2027 and 2028.
Keep receipts. The Finanzamt can ask for evidence.

The same form is used to change tax classes (Anlage Steuerklassenwechsel). A change of class takes effect from the month after the application.

Side effects to know

Mandatory return: with a Freibetrag (except e.g. pure disability or single-parent amounts or a changed number of child allowances), or with tax classes III/V or IV with factor, you are generally required to file a return (§ 46 (2) no. 3a and no. 4 EStG).
Smaller refund later: the costs have already been used during the year.
Duty to report: if things change to your disadvantage (e.g. you no longer commute), you must tell the Finanzamt (§ 39a (1) EStG).
Non-residents: the § 39a (1) procedure is for employees with unlimited tax liability. Special rules apply to limited taxpayers (§ 39a (4) EStG).

FAQ

Is it worth it for small amounts? Only if work costs, special expenses and extraordinary burdens together exceed €600. Work costs only count above the €1,230 lump sum. Below that, the application isn't allowed (§ 39a (2) EStG).

Do I need to apply for my children? Usually not for children under 18. They are normally included in ELStAM automatically. During the year, child allowances only affect the solidarity surcharge and church tax (ELSTER help).

Can I combine a Freibetrag with the home-office day rate? Yes. The day rate is €6 per day, max. €1,260 a year, and counts as Werbungskosten (§ 4 (5) no. 6c EStG; ELSTER help).

What if I'm not sure my costs will be that high? Then don't overestimate. A Freibetrag that turns out too high leads to a back payment with the mandatory return.

I missed the January window. Is it too late? No. You can apply until 30 November 2027. The allowance is then spread over the remaining months (§ 39a (2) EStG).