The 50 euro benefit-in-kind limit per month is one of the few perks in an employment relationship that you can receive without tax deduction, provided it is structured properly. For career starters and working students it pays to know the rule before an employer offers a voucher or gift card. This guide explains what counts as a benefit in kind, how the limit works and where it is quickly exceeded.
Short answer: Benefits in kind (Sachbezüge) stay out of the tax base if, after crediting your own payments, the benefits do not exceed 50 euros in total per calendar month (§ 8 (2) EStG). Vouchers and cards count as benefits in kind only if they entitle you exclusively to goods or services and are granted in addition to the wages already owed. Last updated: November 2026.
The most important points at a glance
- The limit of 50 euros applies per calendar month and to all benefits in kind together (§ 8 (2) EStG).
- It is an exemption threshold (Freigrenze): if it is exceeded even slightly, the whole benefit of that month is taxable.
- Payments you make as an employee are credited against the benefit.
- Vouchers and cards count as benefits in kind only if they meet the criteria of § 2 (1) no. 10 ZAG and are granted in addition to the wages owed (§ 8 (1) EStG).
- Money in any form, such as a cash subsidy, is not a benefit in kind.
What is a benefit in kind and where does the 50 euro limit sit?
Income means all goods that consist of money or money’s worth (§ 8 (1) EStG). Benefits in kind are income that does not consist of money, such as a goods voucher, a membership or a device made available to you. They are generally valued at the usual end price at the place of supply, reduced by customary discounts (§ 8 (2) EStG). As an exception, benefits in kind stay out of the tax base if the benefits, after crediting payments made by the taxpayer, do not exceed 50 euros per calendar month in total. The legal form of the employer or the level of your salary does not matter.
Exemption threshold, not allowance: what does that mean?
An allowance is always deducted from income. An exemption threshold works differently: if you stay below it, no tax arises. If you exceed it, the entire amount becomes taxable, not just the part above. The 50 euros apply per calendar month, and an unused amount cannot be carried over to other months. Over a year that is at most 600 euros (12 × 50 euros), each time only if the limit is met monthly.
| Monthly benefit | Result |
|---|---|
| up to 50 euros, in addition to wages | stays out of the tax base |
| above 50 euros | whole benefit of the month is taxable |
| Employee contribution | is deducted from the benefit |
| Voucher without restriction or in place of salary | no privileged benefit in kind |
Which vouchers and cards count as benefits in kind?
Since the revision of § 8 (1) EStG, vouchers and cards that entitle you exclusively to goods or services and meet the criteria of § 2 (1) no. 10 ZAG are not a cash benefit. They can therefore fall under the 50 euro limit. A further condition is that they are granted in addition to the wages already owed. A salary conversion, where you have part of your pay issued as a voucher, does not meet this. Cash benefits, earmarked cash payments, subsequent reimbursements and benefits denominated in an amount of money, on the other hand, count as cash income and are not privileged.
Whether a particular voucher or card meets the criteria is determined by the card provider and the employer. Ask payroll before you use the card.
How do you work through the limit?
The examples are simplified and contain no wage tax calculation in euros.
Assumption A: In March your employer gives you a goods voucher of 50 euros on top of your salary. The benefit is 50 euros and does not exceed the limit. It stays out of the tax base.
Assumption B: In the same month there is a goods voucher of 30 euros and a gift worth 25 euros. The benefits are added up to 55 euros. The limit is exceeded, and all 55 euros are taxable.
Assumption C: As in B, but you pay 10 euros towards the gift yourself. Your payment is credited, and the benefit is 45 euros. The limit is met.
| Assumption | Benefit in the month | Limit met? |
|---|---|---|
| A: voucher 50 euros | 50 euros | yes |
| B: voucher 30 euros and gift 25 euros | 55 euros | no, everything taxable |
| C: as B, 10 euros contribution | 45 euros | yes |
What applies to working students and career starters?
The rule applies to all employees, including working students and part-time staff. For you as a career starter, the monthly view matters most. A year-end voucher of 100 euros exceeds the limit even if the other eleven months stayed empty. If the employer instead spreads smaller benefits across the year, they can remain privileged. Whether and how benefits in kind affect pay for social insurance purposes follows its own rules. For a mini-job or a working student position, ask payroll. Basics on side jobs are in Part-Time Jobs and Taxes for Students in Germany.
What applies to meals and the company car?
For some benefits in kind, § 8 (2) EStG contains its own rules. Private use of a company car is valued under § 6 (1) no. 4 sentence 2 EStG. For meals during work away from the usual place or a double household, the official value for benefits in kind applies if the price of the meal does not exceed 60 euros. These cases run alongside the 50 euro limit and are not the subject of this guide.
Frequently asked questions
Is a 50 euro voucher per month always tax-free?
Only if it meets the conditions: the voucher must cover only goods or services, meet the criteria of § 2 (1) no. 10 ZAG and be granted in addition to the wages owed. All benefits in kind of the month count together.
Can I make up for unused months?
No. The limit applies per calendar month under the wording of § 8 (2) EStG. A benefit of 100 euros in one month exceeds it even if the previous month was empty.
Is a cash subsidy also a benefit in kind?
No. Earmarked cash payments and benefits denominated in an amount of money count as cash income under § 8 (1) EStG.
Do I have to declare tax-free benefits in kind in my tax return?
Benefits in kind that stay out of the tax base are not part of your income. If the limit is exceeded, payroll records the benefit as wages.
Does the 50 euro limit change in 2027?
In the version of § 8 (2) EStG retrieved (as of November 2026), the amount is 50 euros. Whether a pending legislative procedure, for example on an annual tax act (Jahressteuergesetz) 2026, touches the limit has not been checked in this guide. You can check it on the websites of the Bundestag and the Federal Ministry of Finance.
How to proceed now
- Ask your employer whether an offered voucher is granted in addition to salary and meets the criteria of § 2 (1) no. 10 ZAG.
- Add up all benefits in kind of the month, including small bonuses and gifts.
- Deduct your own contributions from the benefit and compare the result with 50 euros.
- If the limit may be exceeded, ask payroll how the benefit will be accounted for.
- For questions about your own situation, the tax office or personal advice helps, for example through Academycon.
Related guides
- Steuern 2027 für Studierende und Berufseinsteiger (in German)
- Steuer-Checkliste für den ersten Job (in German)
- Steuererklärung im ersten Job (in German)
- Minijob or Student Job: Limits in Figures Compared
- Taxes for Students: When You Pay and When You Do Not
Sources: § 8 EStG, income (as of November 2026)
Last updated: November 2026. This guide is general information, not individual advice.
