A scholarship during a PhD (Promotion) is not tax-free automatically. What matters is who pays it, what the funding is for, how high it is and whether you owe anything in return. Once you know these points, you can see how much of the money you actually keep.
Short answer: A PhD scholarship is tax-free under § 3 no. 44 of the German Income Tax Act (EStG, in German) if it comes from public funds or a charitable body, supports research or academic training, does not exceed the need and does not require work in return. As of October 2026.
Key points
- A scholarship is not tax-free automatically. § 3 no. 44 EStG lists conditions that must all be met.
- The purpose must be research or academic or artistic training. A doctorate fits this purpose.
- The amount may not exceed what is needed for the research task, or for living costs and training.
- A post with an employment contract is not a scholarship. The pay is wages and is taxed.
- The basic scholarship for BMFTR-funded PhDs is up to 1,750 euros per month according to the Heinrich Böll Foundation (as of October 2026).
Which conditions must a scholarship meet?
Tax freedom depends on several conditions. The list below summarises § 3 no. 44 EStG. Check the exact wording in the law, and ask the funder for its guidelines.
- The funder is a public body, an intergovernmental or supranational institution, certain public-law institutions or a charitable corporation.
- The purpose is research or academic or artistic training.
- Awards follow the funder’s guidelines.
- The amount does not exceed the need for the research task or for living costs and training.
- You are not obliged to provide a specific academic counter-performance or to take on a specific employment.
The last condition is often the sticking point for PhD candidates. A scholarship linked to a post at the university may be assessed differently from a pure funding scholarship. Ask the funder before you accept both.
Scholarship or post: what changes for tax?
Both models look like a monthly payment at first glance. For tax purposes they are different. The table shows the differences using the figures we can source.
| Type | Example | Tax treatment |
|---|---|---|
| PhD scholarship (funding foundation) | Basic scholarship up to 1,750 euros, research costs allowance 100 euros, family allowance 155 euros (as of October 2026) | Tax-free if § 3 no. 44 EStG is met |
| University post | Table salary under TV-L, for example E 13 | Wages, income tax and social insurance |
| Flat allowance for employees | 1,230 euros per year (2026) | Deducted from wages under § 9a EStG |
Sources for the amounts: Stipendienhöhe der Begabtenförderungswerke, Stand Oktober 2026 and § 9a EStG (both in German). The post appears in the table only as a comparison. Concrete figures for a half-time post are in our guide on that topic.
Annahme: You receive a scholarship of 1,850 euros per month, made up of 1,750 euros basic scholarship and 100 euros research costs allowance, without family allowance. Over twelve months that is 22,200 euros. If all conditions are met, this amount stays tax-free. If one condition is missing, your calculation changes and the tax office examines the individual case.
What does this mean for your tax return?
Tax-free income is not income in the sense of the Income Tax Act. A post next to a scholarship can still produce employment income. The basic allowance for 2026 is 12,348 euros (§ 32a EStG, in German). Whether a scholarship appears in your tax return, and how a post and a scholarship interact, is for the tax office or a tax adviser to decide in your case.
Tax questions are closely linked to social insurance. The details are in our guide Is a Scholarship Taxable? Tax and Social Insurance.
Frequently asked questions
Is the research costs allowance tax-free?
Allowances such as the research costs allowance form part of the scholarship amount set by the funder. The Heinrich Böll Foundation lists a research costs allowance of 100 euros per month for BMFTR-funded PhD scholarships. Whether it stays tax-free in your case follows the same conditions as the rest of the amount, and the funder can confirm this.
Is a scholarship subject to social insurance?
A scholarship is not pay for work. Which health insurance applies to you depends on your enrolment and your age. The details on PhD candidates are in our guide Health Insurance for PhD Students in Germany.
Can I combine a scholarship with a post?
The funder’s guidelines and your employment contract decide whether both fit together. If the scholarship requires work in return, the tax exemption falls away. Clarify this in writing before you accept.
How high can a PhD scholarship be?
It may not exceed the need that the law requires. For BMFTR-funded PhDs, the Heinrich Böll Foundation lists a basic scholarship of up to 1,750 euros per month (as of October 2026). Other funders have different guidelines, so check the page of the funder you apply to.
Do I need proof that the scholarship is tax-free?
Proof is useful. The approval notice with funder, purpose, term and amount is the best evidence of the conditions. Keep it with your tax documents so you can answer questions quickly.
What if the scholarship is not tax-free?
Then it is taxable, and the tax is determined in the assessment procedure depending on your overall situation. We do not give a fixed percentage here, because it depends on your circumstances. The funder or the tax office can help with unclear cases.
When is a scholarship not tax-free?
Tax freedom is lost as soon as one condition is missing, not only after a serious error. In practice four situations matter most. The list is a guide and does not replace checking your own case.
- The funder is a company without charitable status and without a public mandate.
- The scholarship requires specific work in return, for example regular work on a project.
- The amount goes beyond the need that the purpose of the funding requires.
- The award does not follow guidelines that the funder has published.
If you are unsure whether one of these points applies, ask the funder to confirm the conditions in writing. This also helps later with your tax return (guidelines in German).
Next steps
- Read the scholarship notice: note the funder, purpose, amount and guidelines.
- Check whether the scholarship requires work or a counter-performance.
- Ask the funder to list the allowances and the family allowance separately.
- If you also hold a post, compare the employment contract with the scholarship terms.
- Clarify the tax position with the tax office or a tax adviser before your next assessment.
Related reading
- Scholarships for students: Types, providers, requirements
- PhD in Germany: routes, titles and requirements
- Promotion finanzieren: Stelle, Stipendium oder Eigenmittel im Vergleich (in German)
- Krankenversicherung als Doktorand (in German)
Sources: § 3 Nr. 44 EStG, § 9a EStG, § 32a EStG, Stipendienhöhe der Begabtenförderungswerke, Stand Oktober 2026 (all in German).
Last updated: October 2026. This guide is general information, not individual advice. For your personal situation you can get advice from Academycon: How we work.
