Germany offers tax relief for people with disabilities

In Germany, individuals with physical, mental, or intellectual impairments may be eligible for various tax reliefs and compensations to support social participation and equality. These benefits are largely determined by the degree of disability (GdB), which is assessed by experts based on how much an impairment limits a person's ability to participate in social life.

Regarding motor vehicle tax (Kfz-Steuer), individuals with a GdB of at least 50 and specific markers in their disability ID—such as ‘H’ (helpless), ‘Bl’ (blind), or ‘aG’ (extraordinary walking disability)—can apply for a full tax exemption. A 50 percent reduction is available for those with markers ‘G’ (significant walking disability) or ‘Gl’ (deaf), provided they waive free public transport use and possess an orange-printed disability ID.

Additionally, under Section 33b of the Income Tax Act (EStG), people with a GdB of 40 or higher can claim tax advantages in the form of lump-sum allowances. These are intended to offset additional costs associated with disabilities, such as medication, care, or increased laundry needs.