Flat-rate energy price: Taxation is constitutional

The taxation of the flat-rate energy price allowance, which was available through employers in autumn 2022, is constitutional. The Federal Fiscal Court ruled that the different treatment of mini-jobbers was justified.

In autumn 2022, employees received a one-time energy price allowance of €300 gross . At that time, gas prices were historically high due to the energy crisis. The allowance was paid out by the employers. However, the tax authorities included the allowance as taxable income during the income tax assessment.

The Federal Fiscal Court (BFH) has now ruled in its judgment of June 11, 2026 – VI R 15/24 – that the taxation as income was lawful. The judgment was published on September 10, 2026. Specifically, the case involved an employee who, as the plaintiff, argued that the taxation was unconstitutional.

A voluntary government grant

The Federal Fiscal Court ruled that the flat-rate energy allowance under Sections 112 et seq. of the Income Tax Act was a voluntary government subsidy. To ensure socially balanced compensation for the increased burden caused by energy prices, the flat-rate energy allowance was subject to the individual tax rate and thus granted as a "net subsidy."

This does not violate the general principle of equality enshrined in the Basic Law. The Federal Fiscal Court (BFH) was not convinced by the unequal treatment, specifically alleged by the plaintiff, compared to employees taxed exclusively at a flat rate (minijobbers), who received the energy price allowance as a "gross subsidy" without taxation.

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The different treatment was justified because minijobbers are eligible recipients from the low-wage sector and therefore particularly needy persons.

The legislature is also free to provide voluntary state benefits beyond the scope of state taxation under the Income Tax Act. This applies at least when the legislature intends to tax these benefits on an income-dependent basis for social policy reasons.

Source: Federal Fiscal Court

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