Side Income in Germany: 9 Questions People Ask

Money16 Oct 2026 · 5 min read

More and more people want a second income — to save faster, pay off a loan, or test a business idea. In Germany the first questions are almost always the same: How much can I earn? Do I pay tax? Do I have to register something? Here are short, plain answers.

Nichod (short mein): Germany mein side income shuru karne se pehle chaar cheezein samjho: Minijob ki seema (abhi €603 mahina), main job ke saath sirf EK Minijob chhoot wala hota hai, employee ki side income €410 saal tak tax-free (us se upar tax return zaroori), aur khud ka kaam karoge to Gewerbe/Finanzamt mein registration. Kleinunternehmer ka matlab sirf VAT (Umsatzsteuer) se chhoot hai — income tax phir bhi lagta hai.

Recently changed: From 1 January 2026 the minimum wage rose to €13.90 an hour, so the Minijob limit rose to €603 a month. A further rise to €14.60 (Minijob limit €633) is planned for 1 January 2027. The trainer allowance went up to €3,300 and the volunteer allowance to €960 a year.

Before you start: a simple checklist

Write down what you will do, how many hours, and how much you expect to earn per month.
Check your work contract for a side-job clause.
Decide: Minijob, freelance, or Gewerbe — and register before the first euro comes in.
Open a separate account or pot for side income and keep every receipt.
Put aside part of every payment for tax until you know your real number.

Want to know what your time is really worth? Try the hourly rate calculator. Thinking about a small business? Read how to start a business without quitting your job.

Questions people ask

How much can I earn in a Minijob?

Since 1 January 2026 the Minijob limit is €603 a month on average (it was €556). It is linked to the minimum wage of €13.90 an hour. A rise to €633 a month is planned for 2027, when the minimum wage is planned to reach €14.60.

Can I have a Minijob next to my main job?

Yes — but only one Minijob next to a main job keeps its special status. The Minijob-Zentrale says every further Minijob is added to the main job and becomes subject to social insurance (except unemployment insurance), even if the total stays under the limit.

Do I pay tax on small side income as an employee?

For side income without wage tax (for example freelance fees), the hardship rule (Härteausgleich) applies: up to €410 a year stays tax-free, between €410 and €820 only part is taxed, above €820 it is taxed in full. It is applied automatically. Above €410 you must file a tax return.

How much can I earn without paying income tax at all?

If you have no other income, the basic tax-free allowance (Grundfreibetrag) for 2026 is €12,348 for a single person and €24,696 for a married couple filing together. If you already have a salary, this allowance is usually used up by it.

Do I need to register a business for my side income?

If you trade — selling products, reselling, most direct selling — you usually register a Gewerbe at the trade office, which typically costs about €20–60. Freelancers in liberal professions register only with the tax office. In both cases you fill in the tax registration questionnaire online via ELSTER.

What is the Kleinunternehmer rule?

It frees small businesses from charging VAT. Since 2025 you qualify if your turnover was not more than €25,000 last year and does not go over €100,000 this year. You charge no VAT but also cannot reclaim VAT on purchases. Income tax still applies, and you still file a yearly tax return.

Are some side incomes tax-free?

Yes. Paid work as a trainer, coach, teacher or carer for a non-profit or public body can be tax-free up to €3,300 a year (Übungsleiterpauschale). Other volunteer work for such bodies can be tax-free up to €960 a year (Ehrenamtspauschale). Both rose in 2026.

Do I have to tell my employer about a side job?

Read your work contract first. Many contracts say you must inform your employer, and a side job must not compete with your employer or break working-time limits. If unsure, ask HR or the works council in writing.

Is direct selling a good side income?

Be careful. An FTC staff review of 70 MLM income disclosures found most participants received $1,000 or less a year before costs. Read the company's income disclosure, subtract your own costs, and count your hours before you decide.

Read next

Sources

Ye general jaankari hai, financial advice nahi. This page is general information, not financial, tax or legal advice. Rules and numbers can change — check the official source or a qualified adviser before you decide.