Here’s how it worked before: Union members could claim their dues on their tax returns. But in practice, this often didn’t benefit them at all.
The reason: Membership dues are classified as “income-related expenses,” which can be deducted at a flat rate of up to 1,230 euros. All employees are eligible for this flat-rate deduction, also known asthe “employee flat-rate deduction.”
As a rule, however, union dues do not exceed this flat-rate deduction. And for the majority of employees, all income-related expenses fall within this flat-rate limit. As a result, union dues are absorbed by the flat-rate deduction for income-related expenses.
The result: Although union members have higher income-related expenses, they save hardly any taxes compared to non-members.
The federal government is now eliminatingthis injustice.
Benefit for union members
Going forward, the rule will be: The membership dues can be deducted in additionto the flat-rate allowance for income-related expenses. This allows union members to save on taxes—typically between 25 and 35 percent of their annual membership dues.
The exact amount of savings in each individual case depends on many factors: marital status, income level, children, etc.
Here’s an example:
For those who already claim very high income-related expenses, the change in the law offers little benefit. In these cases, the total union dues already exceed the flat-rate allowance for income-related expenses, so the membership dues can already be fully deducted.
Most colleagues will benefit from the new regulation—and save on taxes every year from now on.
The new rule applies to tax returns starting with the 2026 tax year.
