During the coronavirus pandemic and in response to inflation, the German government allowed employers to pay tax-free bonuses to their employees. We’ll explain which bonuses were or are possible, how long they are valid – and why you don’t need to report them in your tax return.
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The corona bonus (up to €1,500) was tax-free until March 31, 2022 – no longer available.
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The care bonus (up to €4,500) was tax-free until May 31, 2023 – no longer available.
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The inflation bonus (up to €3,000) is still tax-free until December 31, 2024.
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All listed bonuses are tax-free and do not need to be included in your tax return.
🚀 Your Guide
Corona Bonus and Care Bonus
In the first year of the pandemic (2020), the corona bonus was introduced. Employers were allowed to pay their employees up to €1,500 tax-free and exempt from social contributions, either as a lump sum or in installments. This option ended on March 31, 2022.
A separate care bonus was introduced for healthcare and nursing staff to recognize their exceptional work during the pandemic. Employers could pay up to €4,500 tax-free under certain conditions. This ended on May 31, 2023.
Both bonuses were fully tax-exempt – they were not subject to income tax or social contributions. Therefore, they do not need to be included in your tax return.
Inflation Bonus – Still Available
To help offset inflation, a new tax-free bonus was introduced: the inflation compensation bonus.
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Available since: October 26, 2022
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Valid until: December 31, 2024
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Amount: up to €3,000 tax- and contribution-free
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Payment: either as a lump sum or in installments
⚠️ The inflation bonus is voluntary – employers are not required to pay it. It must be paid in addition to your regular salary.
This bonus is also completely tax-free and does not need to be declared in your tax return.
Do I Need to Include Tax-Free Bonuses in My Tax Return?
No. The corona bonus, care bonus, and inflation bonus are tax-exempt and therefore do not need to be included in your income tax return.
💡 You don’t need to enter them or submit any proof – even if you received the payment in installments.
📌 Good to Know:
If your employer pays you one of these bonuses, it should appear separately from your regular wages on your payslip – usually marked as “tax-free” or “§3 No. 11c EStG” (for the inflation bonus).
⚠️ We do not provide tax advice and do not replace a certified tax advisor. All information has been compiled to the best of our knowledge but is provided without guarantee.
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