Side Income Tax Calculator

It depends on the type of side income and your main income. A Minijob up to EUR 603/month is tax-free for you (the employer pays the flat-rate tax). For all other side income, the profit is taxed at your personal marginal tax rate, which typically ranges from 14% to 42%. The higher your main salary, the higher the tax rate on your side income.

Yes, for you as an employee, a Minijob up to EUR 603/month (2026) is tax-free. The employer pays flat-rate charges of about 30% (2% flat tax, pension insurance, health insurance, levies). Minijobs are subject to pension insurance by default: you pay a 3.6% share and earn full pension entitlements. You can apply for an exemption, in which case the Minijob is also free of contributions for you (this is how the calculator works).

A tax return is mandatory once your side income (excluding Minijobs) exceeds EUR 410 per year. For self-employed or rental income, filing is always required. With a second employment under tax class VI, filing almost always pays off since you frequently get back overpaid wage tax.

The Minijob limit is EUR 603 per month in 2026 (2027: EUR 633). It is tied to the minimum wage (EUR 13.90 × 130 ÷ 3) and equals EUR 7,236 per year. If this limit is regularly exceeded, the employment automatically becomes subject to full social insurance. Occasional overages (maximum 2 months per year, e.g., due to covering for colleagues) are permitted.

Since 2025 you remain a small business if your net revenue was at most EUR 25,000 in the previous year and stays at most EUR 100,000 in the current year. If you exceed EUR 25,000, you must charge VAT (19% or 7%) on your invoices starting the following year and submit regular VAT advance returns. Above EUR 100,000 in the current year the scheme ends immediately with the transaction that crosses the limit. The upside: you can then also deduct input VAT from your purchases and business expenses, which reduces the net burden.

Under employment law, you are generally required to inform your employer about a side activity, especially if your employment contract includes an approval clause. Your employer may only prohibit a side job if legitimate interests are affected (e.g., competition, working time regulations). A blanket prohibition of side activities is legally invalid.

A Minijob up to EUR 603/month is the most tax-efficient option since no deductions apply. For higher earnings, freelance activity is often more advantageous than employment because no social contributions are due and business expenses can be deducted directly. Use our comparison calculator to find the optimal option for your situation.

Rental income is taxed at your personal income tax rate as income from renting and leasing. However, you can deduct numerous expenses: loan interest, depreciation (typically 2% per year), maintenance costs, management fees, and property tax. Social contributions do not apply to rental income.

A trade license is only required for commercial activities (e.g., online retail, crafts, hospitality). Freelance activities such as writing, design, consulting, teaching, or art do not require a trade license. When in doubt, section 18 of the Income Tax Act (EStG) defines the liberal professions. Trade registration at the local trade office costs between EUR 20 and EUR 60.

The marginal tax rate indicates how much tax applies to the next euro earned. It results from the progressive income tax formula (section 32a EStG) and rises from 14% (above the basic allowance) to 42% (above EUR 69,879 taxable income, 2026 tariff). The top rate of 45% applies above EUR 277,826. Our calculator automatically determines your exact marginal tax rate.