Current for 2026•As of: July 2026

Benefits in Kind Calculator 2026 tax-free €50 allowance.

Calculate tax-free benefits in kind: €50 monthly allowance, job ticket, meal vouchers & more – net advantage vs. gross salary increase

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Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Law
Einkommensteuergesetz (EStG)
Legal basis for income tax calculation
Authority
Bundesministerium der Finanzen
Official tax tables and payroll calculation guidelines

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Benefits in Kind 2026: Tax-Free Employee Benefits

Benefits in kind (Sachbezüge) are an effective way to increase net pay without incurring additional tax or social security contributions. Employers can grant their employees various tax-free or flat-rate taxed benefits – often with a significant advantage over a conventional gross salary increase.

The €50 Benefit-in-Kind Allowance (Section 8(2) Sentence 11 Income Tax Act)

Monthly allowance: Up to €50 per month completely tax-free – as a voucher, fuel voucher or prepaid card.
Important: it is an allowance limit!: If exceeded, the entire amount becomes taxable, not just the excess. €51 = €51 fully taxed!
No cash payout: Only permitted as a benefit in kind – vouchers, merchandise vouchers or purpose-bound cards. Cash is not allowed.
In addition to salary: The benefit must be granted in addition to the agreed wage – not via salary conversion.

Further Tax-Free Benefits in Kind

Job ticket (Section 3 No. 15 Income Tax Act): Public transport subsidy for commuting is unlimited tax-free, but is offset against the commuter allowance.
Childcare (Section 3 No. 33 Income Tax Act): Subsidies for daycare, childminders or kindergarten are unlimited tax-free – only for children not yet of school age.
Company bicycle (Section 3 No. 37 Income Tax Act): Providing a bicycle or e-bike in addition to salary is completely tax-free.
Further training (Section 3 No. 19 Income Tax Act): Vocational training and further education in the predominant interest of the employer is tax-free.

Benefits in Kind with an Allowance or Flat-Rate Tax

Health promotion (Section 3 No. 34 Income Tax Act): Up to €600 per year for prevention courses, back care, stress management, etc.
Meal vouchers (Section 8(2) Sentence 6 Income Tax Act): Employer subsidy of up to €7.67 per working day toward lunch.
Recreation allowance (Section 40(2) Income Tax Act): €156 for the employee, €104 for the spouse, €52 per child – taxed at a flat rate of 25%.
Internet allowance: Up to €50 per month for a private internet connection – taxed at a flat rate of 25%.

Why Benefits in Kind Instead of a Gross Increase? (Win-Win)

Why Benefits in Kind Instead of a Gross Increase? (Win-Win)
Item	Amount
€100 gross increase	approx. €58 net
€50 benefit in kind (tax-free)	= €50 net
Employer saves on benefit in kind	approx. €70

The employer saves not only wage tax but also the employer's share of social insurance contributions (approx. 20%). This makes benefits in kind particularly attractive for both sides.

Common Mistakes with Benefits in Kind

Exceeding the €50 allowance: Just 1 cent more triggers full tax liability on the entire amount. Always stay under €50!
Cash payout instead of benefit in kind: Cash is not permitted as a benefit in kind. Only vouchers, merchandise vouchers or purpose-bound cards.
Missing documentation: Vouchers and benefits in kind must be documented and verifiable. Missing receipts can lead to retroactive taxation.
Confusing the allowance limit and the tax-free allowance: Not all benefits in kind have an allowance limit (Freigrenze). Some have a tax-free allowance (Freibetrag), where only the excess is taxed.

For Employers: Saving on Payroll Costs

Tax-free benefits in kind are also exempt from social security contributions. This means: no employer contributions for health, pension, unemployment and long-term care insurance. With the €50 allowance, the employer thus saves approximately 20% in addition compared to a gross payment. For a €50 benefit in kind, an equivalent gross payment would cost the employer about €60 (€50 + 20% employer share).

Frequently Asked Questions

The €50 allowance under Section 8(2) Sentence 11 of the German Income Tax Act (EStG) allows employers to grant employees up to €50 per month tax-free as a benefit in kind. Important: this is an allowance limit (Freigrenze), not a tax-free allowance (Freibetrag). If exceeded, the entire amount becomes taxable – not just the part above €50. Permitted are vouchers, fuel vouchers, merchandise vouchers or prepaid cards – no cash payout.

Further tax-free benefits in 2026: job ticket for public transport (unlimited tax-free, Section 3 No. 15 EStG), childcare subsidies for children not yet of school age (unlimited), company bicycle or e-bike (100% tax-free as a genuine additional benefit), vocational further training, plus benefits with a tax-free allowance: health promotion up to €600/year (Section 3 No. 34 EStG), meal vouchers up to €7.67/day, recreation allowance up to €156/year (taxed at a flat 25%).

With an allowance limit (Freigrenze, e.g. the €50 benefit in kind), exceeding it makes the entire amount taxable: a €51 voucher = €51 fully taxable. With a tax-free allowance (Freibetrag, e.g. health promotion €600/year), only the excess amount is taxed: a €700 health course = only €100 taxable.

Yes, significantly: for a tax-free €50 benefit in kind, the employer would need a gross increase of about €100 for the employee to have €50 more net (tax + social insurance). The employer also saves the employer share of social insurance contributions (~20%). Benefits in kind are therefore a win-win for both sides.

Yes, the various tax-free benefits can be combined: for example, a €50 voucher + job ticket + company bicycle. Important: the €50 allowance applies per month in total for benefits in kind under Section 8(2) Sentence 11 EStG. If several benefits in this category together exceed €50, all of them become taxable.

Common mistakes: (1) exceeding the €50 allowance – just 1 cent more makes the entire amount taxable. (2) Cash payout instead of a benefit in kind – not permitted. (3) Missing documentation – vouchers must be verifiable. (4) Confusing the allowance limit and the tax-free allowance. (5) Salary conversion instead of an additional benefit – the benefit in kind must be granted in addition to the agreed wage.

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Benefits in Kind Calculator 2026 tax-free €50 allowance.

Personal Details

Select benefits in kind

Your benefits in kind in detail

Further optimization opportunities

Sources & calculation basis

Related guides

Benefits in Kind 2026: Tax-Free Employee Benefits

The €50 Benefit-in-Kind Allowance (Section 8(2) Sentence 11 Income Tax Act)

Further Tax-Free Benefits in Kind

Benefits in Kind with an Allowance or Flat-Rate Tax

Why Benefits in Kind Instead of a Gross Increase? (Win-Win)

Common Mistakes with Benefits in Kind

For Employers: Saving on Payroll Costs

Frequently Asked Questions

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Personal Details

Select benefits in kind

Your benefits in kind in detail

Further optimization opportunities

Sources & calculation basis

Related guides

The €50 Benefit-in-Kind Allowance (Section 8(2) Sentence 11 Income Tax Act)

Benefits in Kind with an Allowance or Flat-Rate Tax

Why Benefits in Kind Instead of a Gross Increase? (Win-Win)

1What is the €50 benefit-in-kind allowance?

2What tax-free benefits in kind are available in 2026 besides the €50 allowance?

3What is the difference between an allowance limit and a tax-free allowance?

4Are benefits in kind worth it instead of a salary increase?

5Can I use several benefits in kind at the same time?

6What mistakes should I avoid with benefits in kind?

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