Benefit in Kind Calculator Germany 2026

A benefit in kind (geldwerter Vorteil, also called Sachbezug) is a perk from your employer that is not paid out in cash but has economic value. Examples include company cars, job tickets, discounted housing, meal subsidies or staff discounts. Under Section 8 EStG, these benefits count as taxable wages and must be taxed.

Under Section 8 (2) sentence 11 EStG, non-cash benefits up to a monthly limit of 50 € remain free of tax and social security. Important: this is an exemption limit (Freigrenze), not an allowance. If the benefit exceeds 50 € by even one cent, the entire amount becomes taxable. Vouchers, prepaid cards and other non-cash perks fall under this rule.

Under the 1% rule, 1% of the gross list price (including optional equipment) is counted as a benefit in kind each month. For trips between home and the workplace, 0.03% of the list price per kilometre of one-way distance is added. Alternatively, a mileage logbook (Fahrtenbuch) can be kept to prove the actual share of private use. Electric vehicles benefit from a reduced tax base depending on the list price (0.25% or 0.5%).

Yes – if the job ticket is granted on top of the salary you are owed anyway, it is tax-free under Section 3 no. 15 EStG. However, the tax-free amount is offset against the commuter allowance (Entfernungspauschale). With salary conversion (giving up salary in exchange for a job ticket), the tax exemption does not apply and the value must be taxed as a benefit in kind. Alternatively, the employer can apply a flat-rate tax of 25%.

Benefits in kind are usually already taxed by your employer through payroll and shown on your annual wage tax statement (Lohnsteuerbescheinigung). You do not need to declare them separately in your tax return, as they are already included in your gross wages. In your income tax return, however, you may be able to claim work-related expenses (e.g. your own co-payments towards a company car).