Rental Income Tax Calculator (Germany)
How much tax will you actually pay on German rental income? Enter rent, costs, loan interest and your marginal rate: the calculator applies AfA depreciation and shows your taxable income and the tax due, or your tax saving.
Get a real financing check: freeSimplified single-property model: excludes solidarity surcharge, church tax and one-off deductible costs; Tilgung (principal repayment) is not deductible and not part of the tax result. Negative taxable income offsets your other income at your marginal rate. Not tax advice: our partner tax advisors work in English. Illustrative estimate: actual terms depend on the property, your profile and the lender. Not financial or tax advice.
How this calculator works
German rental income is taxed as personal income (Einkünfte aus Vermietung und Verpachtung) at your marginal rate, there is no separate flat landlord tax. Taxable income = annual cold rent minus deductible costs: loan interest, non-recoverable operating costs, management, maintenance and the AfA building depreciation.
AfA is the quiet hero of the calculation: 2% p.a. for buildings completed 1925–2022, 2.5% before 1925, 3% from 2023, and an optional 5% degressive rate for new projects started 10/2023–09/2029, always on the building share of the price, never the land.
In the early years, interest plus AfA often exceed the rent: taxable income turns negative and offsets your salary or business income at your marginal rate. That is why a property with slightly negative pre-tax cash flow can be comfortably positive after tax for high earners.
Frequently asked questions
How is rental income taxed in Germany?
As part of your personal income at your marginal rate (14–45% plus surcharges). Taxable is the net figure after deducting interest, operating costs and AfA depreciation, not the gross rent.
What can landlords deduct in Germany?
Loan interest, AfA building depreciation, property management, maintenance, non-recoverable Hausgeld components, insurance, travel and advisory costs. Principal repayment (Tilgung) is never deductible.
What happens if my rental result is negative?
The loss offsets your other income in the same year and reduces your total tax bill at your marginal rate. Negative early years driven by interest and AfA are common and often intentional.
Do non-residents pay German tax on rental income?
Yes. German rental income is taxed in Germany even if you live abroad (limited tax liability), and most double-tax treaties assign the taxing right to Germany. A German tax return is required; our partner advisors handle this in English.