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Can I deduct supplementary long-term care insurance from tax in Germany?

In short

Can I deduct supplementary long-term care insurance from tax in Germany? You can enter it as a special expense, but it almost never saves you anything. The cap of EUR 1,900 for employees and EUR 2,800 for the self-employed is usually already used up by your basic health and care contributions. In return, the daily care allowance you receive later is tax-free.

Can I deduct supplementary long-term care insurance from tax in Germany?

What it costs

Monthly premiums from published tariff examples and the legal caps for the tax deduction.

ExampleTypical range
Daily care allowance, starting at age 40about EUR 32 to 64 a month
Daily care allowance, starting at age 50about EUR 52 to 99 a month
Pflege-Bahr, minimum premium including allowancefrom EUR 15 a month, of which EUR 5 is the allowance
Cap for employees and civil servantsEUR 1,900 a year for all other provision expenses
Cap for the self-employedEUR 2,800 a year

Premiums are guide values as of November 2026 from published tariff examples.

The basic contributions in the table are our own calculation with 14.6 percent plus 2.9 percent

additional contribution and 3.6 percent care contribution, employee or pensioner share.

Your tax effect depends on your situation; this is not tax advice.

Worked example

Employee, EUR 45,000 gross, statutory insurance, one child

He pays EUR 50 a month for daily care allowance insurance and enters EUR 600 a year in his tax return.

Health and care contributions, employee shareabout EUR 4,600 to 4,750
Cap for other provision expensesEUR 1,900
Basic contributions above the capyes, deducted in full
Supplementary care insurance, EUR 600no effect
Unemployment, liability and accident insuranceno effect either

Tax saving from supplementary care insurance: EUR 0. The premium only pays off through the benefit in a care case, which is then tax-free.

Where it goes in your German tax return

Premiums for private supplementary long-term care insurance (Pflegezusatzversicherung) count as other provision expenses. You enter them in the Anlage Vorsorgeaufwand, together with liability, accident, disability and term life insurance and unemployment insurance contributions.

All of these share one cap: EUR 2,800 a year if you pay your health insurance entirely yourself, and EUR 1,900 if your employer pays a contribution or you receive state aid for health costs (Beihilfe). Married couples filing jointly add both caps together.

Why the cap is almost always full

The tax office first counts your basic health and compulsory care contributions against the same cap. If they already exceed EUR 1,900 or EUR 2,800, they are still deducted in full, but all other provision expenses drop out, including supplementary care insurance.

For an employee with statutory health insurance and a middle income, the basic contributions alone are several thousand euros a year. Supplementary care insurance therefore usually has a tax effect of zero.

WhoCapTypical basic contributionsTax effect of supplementary care insurance
Employee, EUR 45,000 gross, statutory insuranceEUR 1,900about EUR 4,600 to 4,800none
Self-employed, private health insuranceEUR 2,800often well above EUR 2,800usually none
Pensioner, EUR 14,000 pension, statutory insuranceEUR 1,900about EUR 1,730at most on about EUR 170
Married couple, both employedEUR 3,800 togetherusually above EUR 3,800none

When there is some room left

There is only room if your basic contributions are below the cap. That can happen with small pensions or part-time work. People in that situation often pay little income tax anyway, so the saving stays small.

To be honest: take out supplementary care insurance because of the care gap, not for the tax. Still enter the premiums, the tax office works out whether they make a difference.

Pflege-Bahr: an allowance instead of a tax break

State-subsidised daily care allowance tariffs (Pflege-Bahr) come with EUR 5 a month, EUR 60 a year, if you pay at least EUR 10 a month yourself. You get it whether or not your premiums count for tax. For anyone whose cap is already full, it is the only state support for private care provision.

The insurer claims the allowance for you. Subsidised tariffs have no health questions, but a waiting period of up to five years and often rather small benefits.

And when care is needed

What your daily care allowance or care cost insurance pays out is tax-free under section 3 no. 1a Income Tax Act. You do not have to declare or tax it.

Care annuities from life insurers follow different rules from care insurance offered by health insurers. This page only covers daily care allowance and care cost insurance.

Step by step

  1. Check your last tax assessment for the health and care contributions deducted.
  2. Compare them with EUR 1,900 or EUR 2,800.
  3. If the basic contributions are higher, expect no tax saving.
  4. Enter the premiums in the Anlage Vorsorgeaufwand anyway.
  5. Check whether a Pflege-Bahr tariff gets you the EUR 60 annual allowance.

Checklist

  • Policy chosen for the care gap, not for tax
  • Basic contributions compared with the cap
  • Insurer's premium certificate kept
  • Pflege-Bahr allowance checked
  • Care benefits planned as tax-free

Common mistakes

  • Choosing a more expensive tariff believing the state pays part through tax
  • Confusing supplementary care insurance with compulsory care insurance, which is fully deductible
  • Declaring the daily care allowance as income in a care case
  • Taking a Pflege-Bahr tariff only for the allowance and giving up better benefits

Questions and answers

Frequently asked

Where do I enter supplementary care insurance?

In the Anlage Vorsorgeaufwand under other provision expenses.

The tax office works out whether it has any effect.

Is compulsory care insurance deductible?

Yes, compulsory contributions to statutory or private compulsory care insurance count as basic

contributions and are deductible in full, even above the cap.

Do I pay tax on the daily care allowance?

No, benefits from a care insurance are tax-free under section 3 no.

1a Income Tax Act.

Can I deduct my parents' care insurance?

Usually only if you are the policyholder and pay the premiums.

Even then your own cap applies, and it is usually already full.

Can pensioners get the Pflege-Bahr allowance?

Yes, if you are covered by compulsory care insurance,

at least 18 and not already receiving care benefits.

Is supplementary care insurance worth it without a tax break?

That depends on your care gap.

A care home place often means a personal share of several thousand euros a month,

and compulsory care insurance covers only part of the cost.

Sources

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