Travel expenses: how much can you deduct for your commute?
Skimming?
We've prepared the shortcut for you.
This applies to you if
- You are an employee residing in Luxembourg more than 4 units away from your workplace.
- You are a French, Belgian, or German cross-border employee working in Luxembourg: the deduction also applies, without any tax assimilation condition.
- You moved or changed your workplace during the year.
Not for you if you hope to deduct your actual expenses (fuel, train, tolls): according to Guichet.lu, the flat rate covers all commuting costs and no higher actual amount can be deducted.
Key figures to remember
| Item | Value | Year |
|---|---|---|
| Value of one distance unit | €99 per year | 2025 and 2026 |
| Non-deductible units | The first 4 (€396) | 2025 and 2026 (since 2013) |
| Cap | 26 retained units, i.e. €2,574 per year, reached from 30 units of distance | 2025 and 2026 |
| Measurement | Km as the crow flies between municipal administrative centres, regardless of transport mode | 2025 and 2026 |
| Official unit table | Ministerial regulation of 6 March 2023 (Mémorial A No. 125 of 10 March 2023) | Since 2023 |
| Cross-border worker | Home municipality to Luxembourg entry point, then entry point to work municipality | 2025 and 2026 |
| Arrival during the year | 1/12 of the flat rate per month you are taxable in Luxembourg; a partial month of arrival counts as a full month according to Guichet.lu, the amount on your tax card is authoritative | 2025 and 2026 |
| Change during the year | Increase from the start of the month of the change, decrease has no effect on the current year | 2025 and 2026 |
| Forms | 164 R (resident) or 164 NR (non-resident) for the tax card during the year, annual tax adjustment (model 163) or tax return (model 100) after the year | 2025 and 2026 |
The single-line calculation
Deduction = (distance units − 4) × €99, capped at €2,574.
The units between Luxembourg municipalities are listed in the table annexed to the ministerial regulation. The table stops at 30 units: beyond that, or if the distance is not listed, 30 units are retained. For a cross-border worker, the ministerial regulation of 6 February 2012 adds two segments: from the administrative centre of your French, Belgian, or German municipality to the point where you are supposed to enter Luxembourg, and then from this entry municipality to your workplace municipality.
Some commutes to Luxembourg City:
| Commute | Units | Retained | Deduction per year |
|---|---|---|---|
| Esch-sur-Alzette, resident | 16 | 12 | €1,188 |
| Ettelbruck, resident | 26 | 22 | €2,178 |
| Arlon (BE), entry via Steinfort | approx. 8 + 17 = 25 | 21 | approx. €2,079 |
| Thionville (FR), entry via Frisange or Dudelange | approx. 28 to 30 | 24 to 26 | approx. €2,376 to €2,574 |
| Metz (FR) | more than 30 | 26 | €2,574 |
| Trier (DE), entry via Mertert (Wasserbillig) | approx. 13 + 27 = 40 | 26 | €2,574 |
On the Luxembourg side, the units come from the official table. On the foreign side, these are trigger estimates as the crow flies, and the entry point used depends on the ACD: the binding amount is the one on your withholding tax card. For Thionville, the difference between the two possible entry points changes the result by almost €200.
How to get your deduction
Check line FD on your tax card
The tax card is issued and updated automatically by the ACD; your employer simply applies what appears on it. The travel expense amount appears under code FD, as well as on your end-of-year tax certificate.
If the amount is missing or doesn't match your municipalities
Resident: form 164 R, sent to the Wage and Salary Tax Withholding Office (RTS) responsible for your place of residence. Non-resident: form 164 NR, to the RTS Non-residents office (21, rue Eugène Ruppert, Luxembourg). State your work municipality (multiple sites possible, along with their frequency) and attach an employer certificate in case of a change.
For a past year
You correct it via the annual tax adjustment (model 163) or your tax return (model 100), no later than 31 December of the following year: 31 December 2026 for your 2025 income (Guichet.lu). See our guide on annual tax adjustment.
If you move
Further away: report it using form 164 R or 164 NR; the increase applies from the beginning of the month of the change. Closer: your deduction does not decrease until the following year.
A worked example
Let's take Julien, a Belgian cross-border worker living in Arlon and working in Luxembourg City.
- Arlon to Steinfort, his entry point: approx. 8 units (estimate)
- Steinfort to Luxembourg: 17 units (official table)
- Total: 25 units, minus the 4 non-deductible units = 21 units
- Annual deduction: 21 × €99 = €2,079
On his Luxembourg tax, if his taxable income is between €54,090 and €117,450, his marginal rate (the rate applied to the highest bracket of his income) is 39% (tax scale applicable since 2025, ACD). These €2,079 are then worth approximately 2,079 × 39% × 1.07 = €868 per year, including the 7% contribution to the employment fund.
If he had started his job on 1 April 2025, he would only have been entitled to 9/12 of the flat rate for 2025: 2,079 × 9/12 = €1,559.25.
This deduction comes on top of the other items on our deductions checklist. On the Belgian, French, or German side, the rest happens in your residence country tax return.
Common mistakes
- Counting road kilometres: it is the distance as the crow flies between municipal administrative centres.
- Forgetting that the first 4 units do not count.
- Waiting for the employer to correct it: the ACD issues the card; requests must be submitted using form 164 R or 164 NR.
- Cross-border worker: measuring in a straight line to the office instead of going through the entry point into Luxembourg.
Frequently asked questions
No. According to Guichet.lu, the flat rate covers all commuting costs and no higher actual expenses are allowed. For your other professional expenses (excluding the commute), actual expenses remain possible if they exceed the €540 flat-rate professional expense allowance (frais d'obtention).
In the table annexed to the ministerial regulation of 6 March 2023, published in Mémorial A No. 125 on Legilux. The table stops at 30 units: beyond that, or if the distance is not listed, 30 units are retained.
No: 1/12 per month you were taxable in Luxembourg. If you arrived mid-month, Guichet.lu counts that month as a full month: still check the amount written on your tax card. At trigger, we often see this case with newcomers who started in spring.