Regimes: 6
Pauschalierung der Lohnsteuer bei geringfügiger Beschäftigung (Minijob)
OpenFor employees
A single flat tax of 2% of pay (including solidarity surcharge and church tax) instead of ordinary wage tax.
Details
- Who
- Employees in minor employment (minijob under § 8(1) no. 1, § 8a SGB IV) for whom the employer pays pension contributions under the simplified rules.
- How it works
- Instead of ordinary wage tax the employer may pay a single flat tax of 2% of the wage (including solidarity surcharge and church tax) without retrieving the employee's electronic tax data.
- How to opt in
- The employer chooses it and pays the tax; the employee has nothing to file.
- Limits and risks
- Only for minijobs where the employer pays pension contributions under the simplified rules. The pay is left out of the annual return, so no expenses can be claimed against it.
- Legal basis
- § 40a Abs. 2 EStG
- Checked
- 4 November 2026
Übungsleiterfreibetrag und Ehrenamtspauschale
OpenOther
Tax-free up to EUR 3,300 a year (trainers, instructors, carers, artists) or up to EUR 960 a year (other non-profit activities).
Details
- Who
- People with part-time activities as trainers, instructors, carers, artists or volunteers for public-law or non-profit bodies in the EU/EEA/Switzerland.
- How it works
- Tax-free up to EUR 3,300 a year (instructors etc., § 3 no. 26) or up to EUR 960 a year (other non-profit activities, § 3 no. 26a); the two cannot be combined for the same income.
- How to opt in
- No separate application: the exemption applies automatically; any amount above the limit goes into the annual return.
- Limits and risks
- Only part-time work for public or non-profit bodies in the EU/EEA or Switzerland. The two exemptions cannot be combined for the same income; expenses are deductible only insofar as they exceed the exempt amount.
- Legal basis
- § 3 Nr. 26, 26a EStG
- Checked
- 4 November 2026
Gewinnermittlung nach Durchschnittssätzen (Land- und Forstwirtschaft)
OpenFor the self-employed
Profit is set by statutory average rates rather than actual income and expenses.
Details
- Who
- Small farms and forestry businesses with no bookkeeping obligation: up to 20 ha of farmland, up to 50 livestock units and the other limits of § 13a(1) EStG.
- How it works
- Profit is determined from the statutory average rates of § 13a(3)–(7) EStG rather than actual income and expenses, and taxed under the normal schedule.
- How to opt in
- Applies automatically if the § 13a EStG limits are met; you can opt out by application — then for 4 consecutive years.
- Limits and risks
- Only small farms and forestry holdings within the statutory limits (up to 20 ha of land, up to 50 livestock units etc.); tax at the normal scale still applies.
- Legal basis
- § 13a EStG
- Checked
- 4 November 2026
Erlass oder Pauschalierung der Einkommensteuer bei beschränkt Steuerpflichtigen im besonderen öffentlichen Interesse
OpenOther
A non-resident's tax may be waived in whole or in part or fixed as a lump sum.
Details
- Who
- Non-residents (limited taxpayers), in particular performers and athletes at internationally significant cultural and sporting events in Germany or members of foreign cultural groups whose performance is substantially publicly funded.
- How it works
- State tax authorities, with the consent of the Federal Ministry of Finance, may waive the tax in whole or in part or fix it as a lump sum; granted case by case, not automatically.
- How to opt in
- Application to the state's supreme finance authority (usually through the event organiser); the decision needs the consent of the Federal Ministry of Finance.
- Limits and risks
- There is no entitlement: it is granted at the authority's discretion and only in a special public interest.
- Legal basis
- § 50 Abs. 4 EStG
- Checked
- 4 November 2026
Abgeltungsteuer auf Kapitalerträge
OpenFor investors
25% instead of the progressive scale; EUR 1,000 a year tax-free.
Details
- Who
- German residents with private capital income: interest, dividends, gains on shares, bonds and fund units.
- How it works
- Capital income is taxed separately at 25% (plus solidarity surcharge and, for church members, church tax) instead of the progressive scale. German banks withhold it; foreign income is declared. The first EUR 1,000 a year (EUR 2,000 for couples) is tax-free. If the normal scale is cheaper, it applies on request.
- How to opt in
- Automatic: the bank withholds the tax; you allocate the tax-free amount with an exemption order to your bank (Freistellungsauftrag). Foreign income and a request for the normal scale go into the annual return.
- Limits and risks
- Actual expenses above EUR 1,000 are not deductible. It does not apply to certain loans to related persons; gains on selling a stake of 1% or more in a company are taxed at the normal scale, not at 25%.
- Legal basis
- § 32d Abs. 1, 6 EStG; § 20 Abs. 9 EStG
- Checked
- 4 November 2026
Aktivrente (Steuerbefreiung nach § 3 Nr. 21 EStG)
OpenFor pensioners
Up to EUR 24,000 of pay a year free of income tax.
Details
- Who
- Employees who have reached the standard retirement age and keep working under an employment contract with the employer paying pension contributions — whether or not they draw a pension.
- How it works
- Pay for work after reaching retirement age is exempt from income tax up to EUR 24,000 a year (EUR 2,000 a month); the limit falls by 1/12 for each month the conditions are not met.
- How to opt in
- The employer applies the exemption when withholding wage tax; for a job in tax class VI you must confirm to the employer that the exemption is not used in another job.
- Limits and risks
- Only for employees' pay — not for the self-employed or civil servants; social insurance contributions are due as usual.
- Legal basis
- § 3 Nr. 21 EStG
- Checked
- 4 November 2026
DoubleTaxation