Benefits in Kind Calculator 2026
Calculate tax-free benefits in kind: €50 monthly allowance, job ticket, meal vouchers & more – net advantage vs. gross salary increase
As of September 2026Basis: § 8 (2), § 3, § 40 EStGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
Select benefits in kind
- €/month
Fuel vouchers, merchandise vouchers, prepaid cards, etc. · tax-free up to €50.00 per month
Personal DetailsGross €4,000 · marginal tax rate 31%
Calculated from your gross pay: 30.6% (tax class I, 2026 tariff, with solidarity surcharge, without church tax).
Your net benefit
per month
€50.00
€50.00Your benefits in kind give you €50.00 net per month, €600.00 per year – the employer pays €50.00 for them.
Compared with a pay rise+€22.05
44.1% more net than a gross pay rise at the same cost. For the same net effect you would need €72.05 more gross.
- €50 benefit in kind (allowance)tax-free €50.00 · flat-rate €0.00 · taxable €0.00
- €50.00
- Your tax saving
- €22.05 (€264.55 per year)
- Cost for the employer
- €50.00 (€600.00 per year)
RZ-26 · headon.pro
Unused options
Job ticket / Deutschlandticket+€529.11 per year
Public transport subsidy for commuting
Childcare subsidy+€529.11 per year
Subsidy for daycare, childminder, etc.
Company bicycle / e-bike+€529.11 per year
Provision of a bicycle
Further training+€529.11 per year
Vocational further education and training
Health promotion+€264.55 per year
Prevention courses, back care, stress management
Why benefits in kind pay off
With a marginal tax rate of 31%, only €0.69 of every euro of a pay rise reaches you net. Tax-free benefits in kind reach you in full.
How this was calculated
For each benefit the tax-free, flat-rate taxed and taxable parts are determined. Your tax saving follows from your marginal tax rate; the comparison is a gross pay rise that costs the employer the same.
Legal basis: § 8 (2) EStG (€50 exemption limit, 2026 benefit values), § 3 nos. 15, 19, 33, 34, 37 EStG, § 40 (2) EStG.
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 (§ 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
- 1Job ticket (§ 3 No. 15 Income Tax Act)Public transport subsidy for commuting is unlimited tax-free, but is offset against the commuter allowance.
- 2Childcare (§ 3 No. 33 Income Tax Act)Subsidies for daycare, childminders or kindergarten are unlimited tax-free – only for children not yet of school age.
- 3Company bicycle (§ 3 No. 37 Income Tax Act)Providing a bicycle or e-bike in addition to salary is completely tax-free.
- 4Further training (§ 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 (§ 3 No. 34 Income Tax Act)
- Up to €600 per year for prevention courses, back care, stress management, etc.
- Meal vouchers (§ 8(2) Sentence 6 Income Tax Act)
- Employer subsidy of up to €7.67 per working day toward lunch.
- Recreation allowance (§ 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)
- €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
- 1Exceeding the €50 allowanceJust 1 cent more triggers full tax liability on the entire amount. Always stay under €50!
- 2Cash payout instead of benefit in kindCash is not permitted as a benefit in kind. Only vouchers, merchandise vouchers or purpose-bound cards.
- 3Missing documentationVouchers and benefits in kind must be documented and verifiable. Missing receipts can lead to retroactive taxation.
- 4Confusing the allowance limit and the tax-free allowanceNot 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
What is the €50 benefit-in-kind allowance?
The €50 allowance under § 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.
What tax-free benefits in kind are available in 2026 besides the €50 allowance?
Further tax-free benefits in 2026: job ticket for public transport (unlimited tax-free, § 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 (§ 3 No. 34 EStG), meal vouchers up to €7.67/day, recreation allowance up to €156/year (taxed at a flat 25%).
What is the difference between an allowance limit and a tax-free allowance?
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.
Are benefits in kind worth it instead of a salary increase?
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.
Can I use several benefits in kind at the same time?
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 § 8(2) Sentence 11 EStG. If several benefits in this category together exceed €50, all of them become taxable.
What mistakes should I avoid with benefits in kind?
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.