How Much Tax Will You Pay on Your Rental Income?
Calculate your income from renting under §21 EStG — with depreciation, deductible expenses and your personal marginal tax rate.
Income
Depreciation (AfA)
Deductible expenses
Taxation
0 %45 %
- Rental income (taxable)
- -€100
- Status
- Loss (offset against other income)
- Tax burden
- -€42
- AfA
- €5,000
- Total deductible expenses
- €7,100
- Profitability ratio
- -0.8 %
A negative result can be offset against other income (Verlustausgleich, §10d EStG) — the tax burden becomes negative.
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Breakdown
| Category | Amount |
|---|---|
| Cold rent | €12,000 |
| Service-charge surplus | €0 |
| Total rental income | €12,000 |
| AfA (straight-line) | −€5,000 |
| Maintenance | €1,500 |
| Loan interest | €4,000 |
| Property tax | €600 |
| Non-passable building fees | €800 |
| Other deductible expenses | €200 |
| Total deductible expenses | −€7,100 |
| Income from renting (§21 EStG) | -€100 |
| Marginal tax rate | 42 % |
| Tax burden | -€42 |
Note: Calculation under §21 EStG (income from renting and leasing) and §7 (4) EStG (straight-line depreciation). Standard AfA rate is 2 % (buildings constructed after 1924), 2.5 % for older buildings, and 3 % for residential buildings built after 2022. Deductible expenses include loan interest, maintenance, property tax and non-passable building fees. The calculated tax burden uses your marginal rate as an approximation — the actual burden depends on your total income.
Background
Rental Income Tax in Germany 2026: AfA, Deductible Expenses and §21 EStG Explained
11 Min.