Bonus payments from statutory health insurance funds for health-conscious behaviour are treated as a refund of contributions for tax purposes if they exceed a certain amount. This tax-free allowance is now being codified in law.
What is changing
Going forward, bonus payments for health-conscious behaviour will not be treated as a refund of contributions up to an amount of EUR 150 per insured person and contribution year. If bonus payments exceed this amount, they will always be treated as a refund of contributions.
The taxpayer may also provide evidence that the bonus payments exceeding this amount do not constitute a refund of contributions.
Note
The income tax treatment of such bonus payments has been the subject of several supreme court decisions.
To avoid an administratively complex allocation — particularly in cases involving flat-rate bonus schemes where the tax effect in individual cases is typically very minor — a simplification rule was introduced by way of an administrative regulation. This administrative rule applies to payments made up to 31 December 2024. Since the simplification rule has proven effective in practice, it is now being enshrined in law through the present regulation.
Entry into force
This applies from the 2025 assessment period onwards.
Frequently asked questions
Frequently asked questions
Up to what amount do health insurance bonus payments not count as a contribution refund?
Bonus payments for health-conscious behavior are not treated as a contribution refund up to EUR 150 per insured person and contribution year. Within this allowance, they therefore do not reduce the health insurance contributions deductible as special expenses (Sonderausgaben).
What are the tax consequences if bonus payments exceed EUR 150 per year?
Amounts exceeding this threshold are generally treated as a refund of contributions and reduce the special expense deduction for health insurance contributions. However, the taxpayer may provide evidence that the excess amount likewise does not constitute a refund of contributions.
From when does the statutory EUR 150 allowance for bonus payments apply?
The statutory rule applies from the 2025 assessment period onwards. For payments made up to 31 December 2024, a corresponding administrative rule applied as a simplification provision.
Why was the tax allowance for bonus benefits enshrined in law?
The income tax treatment of bonus benefits has been the subject of several rulings by Germany's highest courts. As the previously applicable administrative rule has proven effective in practice and a complex allocation with minor tax impact is to be avoided, it has now been codified in law.
Which health insurance bonus payments fall under the tax-free allowance?
Covered are bonus payments granted by health insurance providers for health-conscious behavior of the insured. This typically includes bonuses for preventive medical check-ups, sports activities, or other preventive measures.