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

CategoryAmount
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 rate42 %
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.