Side Income Net
6.099,00 €
Marginal Tax on Side Income
8.901,00 €
Effective Rate on Side Income
59.3%
Mini-job income up to EUR 603/month is generally tax-exempt.
How is side hustle income taxed in Germany?
Side income from self-employment or freelancing is added to your main employment income for tax purposes. The combined income is taxed at the progressive income tax rate. This means the side income is effectively taxed at your marginal rate, which is typically higher than your average rate.
Do I need to register my side hustle?
If your side activity is a Gewerbe (trade), you need a Gewerbeanmeldung. If it is a Freiberuf (liberal profession), you only need to register with the Finanzamt. In both cases, you must file the Fragebogen zur steuerlichen Erfassung. Side income over EUR 410 per year must be declared.
Is mini-job income exempt from additional taxation?
Mini-job income (up to EUR 603/month in 2026) is generally tax-free for the employee as the employer pays a flat 2% tax. However, if you have a mini-job as a side job alongside regular employment, only one mini-job is tax-exempt. Additional mini-jobs are subject to regular taxation.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
How income from side jobs, freelancing, and hobbies is taxed alongside your main job
When do you need to declare side income?
All side income must be declared if it exceeds €410 per year. This includes freelance work, online sales, rental income, and tutoring. Below €410, no tax is due and no declaration is needed. Between €410 and €820, a partial exemption applies. A mini-job (up to €538/month) as a side job is usually tax-free if it is your only side employment.
How is side income taxed on top of your salary?
Side income is added to your main salary and taxed at your marginal rate. If your salary is €50,000 (marginal rate ~35%) and you earn €10,000 from freelancing, the side income is effectively taxed at 35% or more. The higher your main income, the more tax you pay on every extra euro from your side hustle.
Do you need to register a Gewerbe for a side hustle?
If your side hustle is a commercial activity (selling products, providing non-professional services), you need a Gewerbeschein from your local Gewerbeamt. If it is a freiberufliche Tätigkeit (writing, consulting, teaching, art), you only register with the Finanzamt. A Gewerbeschein typically costs €20-€60 and takes about 30 minutes to obtain.
Does your employer need to know about your side hustle?
Many employment contracts require you to inform your employer about side activities (Nebentätigkeitsanzeige). Your employer cannot unreasonably refuse but can object if the side hustle competes with them, affects your work performance, or violates working time laws. Always check your contract and inform your employer in writing to be safe.
Can you use the Kleinunternehmerregelung for your side hustle?
Yes, if your total self-employment turnover (main and side) was below €22,000 last year and will not exceed €50,000 this year, you can use the Kleinunternehmerregelung. This means no VAT on invoices and no VAT returns. Most side hustlers qualify easily since side income is typically well under €22,000.
What expenses can you deduct from side hustle income?
All expenses directly related to your side hustle are deductible: materials, software, advertising, home office (Homeoffice-Pauschale), phone and internet (business share), travel to clients, and professional development. A photographer can deduct camera equipment, a tutor can deduct textbooks and travel. Keep all receipts for at least 10 years.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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