Volunteer Expense Allowance: The New Tax-Free Threshold

Volunteer Expense Allowance (Aufwandsentschädigung): Tax-free limits and rules for 2025

What does “Aufwandsentschädigung” mean?
An Aufwandsentschädigung is a payment made for voluntary (unpaid) activities. It is generally not treated as a regular salary, but as compensation for expenses, effort, or time invested. In Germany, special tax rules exist so that volunteers are not burdened with taxes on small amounts.

The two most common tax-free allowances

• Ehrenamtspauschale (§ 3 No. 26a EStG)
Up to €840 per year can be tax- and social-security-free.
It is intended mainly for administrative, organisational, or general roles in non-profit organisations.
It cannot be combined with the Übungsleiter allowance for the same activity.

• Übungsleiterpauschale (§ 3 No. 26 EStG)
Up to €3,000 per year can be tax-free.
It applies to activities with an educational, training, artistic, or care-related component, such as coaching, teaching, course instruction, or care work.

Which amounts are actually tax-free?

You can only use both allowances at the same time if they relate to two clearly separate and independent activities—not if the same task is simply described differently.

Any payments above these limits are generally treated as taxable income and must be declared accordingly.

Is there an absolute maximum limit?
If payments exceed the relevant tax-free allowances, they may be treated as taxable income.
In certain special cases (for example, payments funded by public bodies), different limits or separate legal rules may apply. These situations are less common and depend heavily on the specific legal basis.

Status in 2025 – any changes?
The standard limits remain in place for 2025:

Ehrenamtspauschale: €840 per year
Übungsleiterpauschale: €3,000 per year

There are discussions about possible increases from 2026 (e.g., €960 and €3,300). Whether this will happen depends on final legislative decisions.

Documentation and tax return

The allowance should be reported in the tax return, depending on the case as income from employment or self-employment.
Keep proper documentation: written confirmation/contract, description of activities, payment statements, and receipts if relevant.
Make sure expenses and allowances are handled correctly to avoid questions later.

Quick summary

Volunteers may often receive €840/year (Ehrenamtspauschale) or €3,000/year (Übungsleiterpauschale) tax-free.
Both can only be combined if they are two separate activities.
Amounts above the limits may become taxable.
Keep documents and written proof.
Possible increases are mainly being discussed for 2026 and later.

— The editorial team strives to provide accurate information. However, mistakes may occur or some details may be incomplete. Please treat this text as initial guidance and consult the responsible authorities for confirmed information.