Germany Rental Income Calculator 2026 — Vermietung Steuer
Calculate your German rental income tax (Einkommensteuer on Vermietung). Includes AfA depreciation (2%/3% building write-down), deductible Werbungskosten (mortgage interest, Grundsteuer, insurance, management fees, maintenance), and the 3-object Gewerbesteuer limit.
How rental income is taxed in Germany (2026)
Rental income (Einkünfte aus Vermietung und Verpachtung) is taxed as part of your personal Einkommensteuer at progressive rates (14%–45%). You only pay tax on the net rental income — your rental revenue minus all deductible expenses (Werbungskosten). If your rental income is negative (a loss), it reduces your overall taxable income, generating a tax saving at your marginal rate.
Key deductible expenses include mortgage interest (Schuldzinsen — not principal repayments), Grundsteuer (property tax), building insurance, Hausverwaltung (management fees), maintenance and repairs, and AfA depreciation (2% per year for buildings with a 50-year life, or 3% for buildings constructed after 2022 with a 33-year life). Only the building value (not the land value) is depreciable.
AfA depreciation rules
The Absetzung für Abnutzung (AfA) is the tax depreciation write-down for buildings. For residential rental properties, the standard rate is 2% per year (50-year useful life), meaning you can deduct 2% of the building's construction cost each year. For buildings constructed after 2022, a higher rate of 3% per year (33-year useful life) applies. The depreciation is calculated on the building value only — the land (Boden) is not depreciable.
The 3-object limit and Gewerbesteuer
If you own 3 or fewer rental properties, your activity is generally considered private Vermögensverwaltung (asset management) and is not subject to trade tax. If you own more than 3 properties, the tax office may classify you as a Gewerbetreibender (tradesperson), potentially triggering Gewerbesteuer (trade tax) in addition to Einkommensteuer. The calculator shows a warning when you exceed this threshold.
Germany Rental Income Calculator 2026 — Vermietung Steuer
Free German rental income tax calculator. Calculate Einkommensteuer on rental properties with AfA depreciation, Werbungskosten deductions, and mortgage interest.
Calculation Breakdown
Expense Breakdown
Important Notes
- AfA (Absetzung für Abnutzung): Buildings are depreciated at 2% per year (50-year useful life). Buildings constructed after 2022 qualify for 3% (33-year useful life). Only the building value (not land) is depreciable.
- Mortgage Interest: Only the interest portion of your mortgage payment is deductible — principal repayments (Tilgung) are not deductible.
- 3-Object Limit: Owning ≤3 rental properties is generally treated as private Vermögensverwaltung (not subject to Gewerbesteuer). With >3 properties, the tax office may classify you as a Gewerbetreibender.
- Werbungskostenpauschale: If employed, you can deduct €1,230 as employee expenses (already reflected in your other income tax calculation).
- Negative income (loss): A rental loss reduces your total taxable income, generating a tax saving at your marginal rate. Rental losses can offset other income.
Understanding your results
Net Rental Income is your annual rent minus all deductible expenses. If positive, this amount is added to your other income and taxed at your marginal Einkommensteuer rate. If negative (a loss), it reduces your total taxable income, saving you tax at your marginal rate.
Marginal Tax Rate is calculated from your other income using the German progressive tax formula (Grundfreibetrag €12,348, then progressive 14%–42%, then 42% up to €277,826, then 45%). This marginal rate is applied to your net rental income.
Pre-Tax vs After-Tax Cash Flow: The pre-tax monthly cash flow shows your net rental income divided by 12. After-tax shows what remains after applying the tax effect — if you have a loss, the tax saving improves your cash flow.
Vorauszahlungen (Advance Tax Payments)
If your rental income generates significant tax liability, the Finanzamt will issue Vorauszahlungen — quarterly advance payments based on the prior year's tax assessment. These are estimated and later reconciled when you file your annual Steuererklärung (tax return).