Basic Tax-Free Allowance and Tax Liability
Tax liability on Vocational Training Compensation (Ausbildungsvergütung) depends on the annual income. The basic tax-free allowance, which is €10,908 for the year 2025, represents the threshold up to which no income tax needs to be paid. As long as the compensation does not exceed this amount, the Vocational Training Compensation (Ausbildungsvergütung) remains tax-free.
Income Tax
Once the annual compensation exceeds the basic tax-free allowance, income tax becomes due. The amount of income tax depends on the trainee’s tax class:
- Tax Class I: for unmarried trainees without children
- Tax Class II: for single parent trainees
- Tax Class III: for married trainees whose spouse has no income
- Tax Class IV: for married trainees whose spouse is also employed
The income tax is directly withheld by the training company and forwarded to the tax office. The trainee receives the net amounts transferred to their account.
Church Tax
If the trainee belongs to a taxable religious community, church tax is additionally levied on top of the income tax. This amounts to 8% or 9% of the income tax, depending on the federal state. The church tax is also directly withheld by the training company.
Solidarity Surcharge
The solidarity surcharge amounts to 5.5% of the income tax. However, it is only levied on higher incomes, so most trainees are not affected. Nevertheless, if the Vocational Training Compensation (Ausbildungsvergütung) exceeds the threshold, the solidarity surcharge is automatically withheld.
Tax Classes and Their Effects
The choice of tax class significantly affects the amount of income tax deductions. While trainees in tax classes I and IV have moderate deductions, the tax burden in tax class III is considerably lower. Tax class II offers additional relief for single parents.
Tax-Free Additional Benefits
Certain additional benefits from the training company are tax-free. These include:
- Subsidies for travel costs, provided they are demonstrably used for commuting to the training site
- Meal subsidies in the form of meal vouchers
- Expense allowances for out-of-town activities
Tax Refund through Tax Return
Trainees who have paid income tax during the year can potentially receive a refund by submitting a tax return. This is particularly beneficial if:
- the compensation did not exceed the basic tax-free allowance throughout the entire year (e.g., due to a late start of training),
- high advertising costs have been incurred, such as travel costs to vocational school,
- special expenses such as contributions to health and long-term care insurance can be claimed.
The tax return can be submitted online via the ELSTER portal. The income tax already paid is reconciled with the actual liable taxes. In many cases, this leads to a refund.
Important Notes
The tax deductions affect only trainees with high compensation. For most trainees, the Vocational Training Compensation (Ausbildungsvergütung) remains tax-free as it is below the basic tax-free allowance. Nevertheless, trainees should regularly check their pay slips and consult their training company if there are any uncertainties. Additionally, it can be helpful to address the topic of tax returns early to obtain possible refunds.