Basics of Taxes on Vocational Training Compensation (Ausbildungsvergütung) during Vocational Training (Ausbildung) in Germany 2025

The tax liability for vocational training compensation depends on the amount of annual income. If the compensation exceeds the basic allowance of €10,908 (as of 2025), income tax becomes due. Additionally, church tax and solidarity surcharges may be owed.

Income tax is a form of collecting income tax that is directly withheld by the employer from the salary or Vocational Training Compensation (Ausbildungsvergütung) and remitted to the tax office. It ensures that income is taxed immediately and without the employee's intervention.

Trainees benefit from various tax allowances that reduce their taxable income. The most significant tax allowances include the basic tax allowance, the standard deduction for expenses, and allowances for special expenses.