Anyone who serves as a volunteer on a local or town council receives an allowance for this work. To ensure that not the entire amount is subject to tax, Lower Saxony’s tax legislation provides for flat-rate tax-free allowances. These were increased with effect from 1 January 2026, following the 2025 Annual Tax Act, which had already raised the general flat-rate allowances for trainers and volunteers.
How does the decree on council members work?
The amount of the tax-free allowance depends on the population of the municipality, town or district in which the office is held. The larger the local authority, the higher the tax-free allowance. The Lower Saxony Ministry of Finance has now set out the specific figures in an updated circular.
Exemptions for local authorities and towns (monthly / annually)
- Up to 20,000 inhabitants: 138 euros per month, 1,656 euros per year
- 20,001 to 50,000 inhabitants: 219 euros per month, 2,628 euros per year
- 50,001 to 150,000 inhabitants: 270 euros per month, 3,240 euros per year
- 150,001 to 450,000 inhabitants: 338 euros per month, 4,056 euros per year
- More than 450,000 inhabitants: 404 euros per month, 4,848 euros per year
Exemptions for districts (monthly / annually)
- Up to 250,000 inhabitants: 270 euros per month, 3,240 euros per year
- More than 250,000 inhabitants: 338 euros per month, 4,056 euros per year
The minimum amount specified in the Payroll Tax Guidelines takes precedence
Important to note: The Payroll Tax Directive provides for a general tax-free allowance of 275 euros per month. If the allowance under the Council Members’ Decree is lower than this, the higher amount automatically applies. In practice, this applies to elected representatives in local authorities with up to 150,000 inhabitants and to members of district councils with up to 250,000 inhabitants.
Travel expenses and election volunteers
In addition to the flat-rate allowances, councillors may also claim tax-free reimbursement of the actual travel costs incurred for journeys to council meetings, political group meetings or similar engagements. These reimbursements also count as tax-free expense allowances and are not deducted from the flat-rate allowance.
Anyone who does voluntary work from time to time – for example, as a polling station worker – will also benefit from an increase: the daily tax-free allowance will rise from 8 euros to 9 euros.
What does this mean for those affected?
From the 2026 tax year onwards, honorary elected representatives in local authorities in Lower Saxony will be able to receive a slightly larger portion of their expense allowance tax-free. Anyone preparing their tax return for 2026 who is unsure which allowance applies in their specific case should seek professional tax advice to check this. The calculation can become particularly complex where an individual holds several offices or is entitled to additional reimbursements.
Source: Lower Saxony Ministry of Finance, press release dated 31 July 2026
Source: Haufe: Tax
This article was created with the help of AI and has been editorially reviewed.
