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.
Worked examples
Same flat in every example: bought in Leipzig for €400,000 (built 2005), €444,280 including 11.07 % purchase costs, 80 % building share, let at €1,150 cold rent a month, €1,400 a year of non-recoverable costs, loan of €240,000 at 3.97 % (the rate on this page today).
Single, about €85,000 gross salary, flat let and financed
A single taxpayer with €85,000 gross sits at the 42 percent marginal rate. The rental result is negative in year one, so the loss reduces the tax on the salary.
| Annual cold rent | €13,800 |
| Loan interest, year one | minus €9,528 |
| Non-recoverable costs | minus €1,400 |
| AfA, 2 percent on the building share | minus €7,108 |
| Taxable rental result | minus €4,236 |
| Tax effect at 42 percent | saving of €1,779 |
| Cash result after tax, year one | €4,651 (€388 a month) |
Married, about €85,000 joint gross, same flat
Joint assessment (Splitting) lowers the marginal rate to roughly 32 percent at that income. Everything else is identical, so the saving is smaller and the cash result slightly lower. Your exact marginal rate comes from the tariff; the slider above takes whatever it is.
| Taxable rental result | minus €4,236 |
| Tax effect at about 32 percent | saving of €1,356 |
| Cash result after tax, year one | €4,228 (€352 a month) |
Owner living abroad, no other German income
The deductions are the same, but the loss has no German salary to offset. It is carried forward and used against the flat's own surplus in later years (§ 10d EStG). Tax in year one is zero, not negative.
| Taxable rental result | minus €4,236 |
| Tax in year one | €0, loss of €4,236 carried forward |
| Cash result after tax, year one | €2,872 (€239 a month) |
Loan repaid, single at 42 percent: what the rent is worth after tax
Without interest the result turns positive and is taxed. AfA still runs for the rest of the building's fifty-year life.
| Taxable rental result | €5,292 |
| Income tax at 42 percent | €2,222 |
| Rent after costs and tax | €10,178 a year, €848 a month |
Self-used home: none of the above applies. There is no rental income and nothing is deductible, and a loan on your own home is paid from taxed income.
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.
Does it matter whether I am married?
Only through the marginal rate. A married couple assessed jointly (Splitting) usually sits at a lower marginal rate than a single person with the same household income, so the same rental loss saves less tax and the same rental surplus costs less. The deductions themselves, interest, costs and AfA, do not change with marital status. Enter your own marginal rate in the slider.
What if I live in the flat myself?
Then nothing on this page applies: there is no rental income, and interest, costs and depreciation are not deductible for a self-used home. The exception is the ten-year rule on a later sale, which the self-use can shorten. Switch to letting and all the deductions start.
What if I live abroad and only own the flat?
The deductions are identical and the rent is taxed in Germany from the first euro of surplus, without the basic allowance. A loss cannot be set against a foreign salary; it is carried forward and used against the flat's own surplus in later years, so the tax saving arrives later, not never.
Is the result monthly or yearly, before or after tax?
The calculator works in years: rent times twelve, minus a year of interest, costs and AfA, times your marginal rate. Divide the last line by twelve for a monthly figure. The last line is the cash result after tax, that is rent minus interest minus costs, plus the tax saving or minus the tax due; repayment of the loan is not in it.