Checked on 16 October 2026: tax rules for the Dienstrad in the Income Tax Act (§ 3 Nr. 37 EStG and § 6 EStG); federal subsidy for commercial cargo bikes on klimaschutz.de; end of the Munich programme on stadt.muenchen.de; 2026 Entfernungspauschale in § 9 EStG. Municipal subsidies are listed with the date of their latest published rules.
Germany is Europe's biggest e-bike market, yet the federal government pays private buyers no purchase grant. The engine of the market is the Dienstrad: the company bike, almost always leased (JobRad, Bikeleasing, Lease a Bike, Company Bike…). A large share of premium e-bikes sold in Germany go through this channel, and it is the first thing to look at if you are an employee.
The Dienstrad: how it works
Your employer leases a bike (usually for 36 months) and lets you use it for work and private riding. Two formulas coexist, with very different tax treatment.
Formula 1: the bike on top of your salary (§ 3 Nr. 37 EStG)
If the employer pays the lease on top of the salary already owed (zusätzlich zum ohnehin geschuldeten Arbeitslohn), the benefit is fully exempt from tax and social contributions. You ride for nothing. The exemption is time-limited: it runs until 31 December 2030.
It is rare in the private sector, more common in companies trying to recruit, and by far the best deal on the continent.
Formula 2: salary conversion (Gehaltsumwandlung)
This is the usual case. The lease payment is deducted from your gross salary, reducing your tax and contributions. In return, private use is a benefit in kind taxed at a flat 0.25% of the recommended retail price (UVP) per month, rounded down to the nearest hundred euros. The rule applies to bikes first provided between 1 January 2019 and 31 December 2030.
Example for an e-bike with a €4,000 list price:
| Item | Amount |
|---|---|
| Benefit-in-kind base | €4,000 |
| Taxable benefit per month (0.25%) | €10 |
| Taxable benefit per year | €120 |
Compared with the 1% rule for company cars, that is a quarter. The real gain depends on your tax band, the monthly payment, the included insurance and the buy-out price at the end: leasing companies' calculators show attractive savings versus paying cash, but always do the maths with your own payslip, insurance and buy-out included.
Dienstrad pitfalls
- The buy-out at the end of the contract: after 36 months you can often buy the bike at a residual value. If that price is very low, the tax office may treat the gap with market value as a taxable benefit; some lessors cover that tax at a flat rate. Read the clause before signing, and check the bike's real value.
- Pension and benefits: salary conversion lowers your gross pay, and so slightly your statutory pension rights and some salary-based benefits (unemployment benefit, parental allowance). The effect is small for a bike, but it exists.
- Speed pedelecs: a 45 km/h e-bike is a motor vehicle (Kraftfahrzeug) for tax purposes, subject to company-car rules, not to the § 3 Nr. 37 exemption. Plus plate, insurance and helmet: see our 25 or 45 km/h article.
- Changing jobs: if you leave, the lease must be settled or transferred. Terms vary by lessor.
The Pendlerpauschale: 38 cents from the first kilometre
Since 1 January 2026, the Entfernungspauschale (home-to-work distance allowance) is €0.38 per kilometre of one-way distance, from the first kilometre (previously €0.30 up to the 20th km). It applies whatever your means of transport, bike included.
Read it correctly: it is not a payment but a deduction from taxable income, which only has an effect if your work expenses exceed the employee lump sum (Arbeitnehmer-Pauschbetrag) of €1,230. With a 10 km commute and 220 working days you reach €836: on its own that is not enough, but with other expenses (tools, training, second home) it can count.
Subsidies for Lastenräder (cargo bikes)
Federal level: businesses only
The E-Lastenfahrrad-Richtlinie funds 25% of the price of an electric cargo bike, up to €3,500, until 30 June 2027. Bikes must be new, series-produced, with a permitted total weight of at least 170 kg. But private individuals are excluded: it targets businesses (tradespeople, couriers, the self-employed), municipal companies under private law and some public bodies. If you are a tradesperson or a self-employed courier, it is one of the best subsidies in Europe.
Länder level: almost nothing left for households
Most Länder have ended their consumer programmes. Those that remain mostly target municipalities, associations or delivery uses. We found no regional programme open to private individuals confirmed for 2026.
City level: case by case
This is where household subsidies survive, with budgets often used up within weeks:
| City | Subsidy | Status |
|---|---|---|
| Munich | 25% of the net price, up to €750 for a cargo pedelec | Ended: no more applications since 2 July 2025 |
| Friedrichshafen | 20% of the investment, up to €1,000 for a new electric cargo bike (doubled with the Häfler Karte) | Form published December 2024 — check it is still open |
| Other municipalities | Variable, often 20 to 33% of the price | Search "Lastenrad Förderung" + your town |
The Munich programme is the textbook case: generous, open to individuals… and closed by city council decision. In Friedrichshafen you also need a 100% renewable electricity contract, and you apply before ordering. General rule in Germany: never order before you have the written approval (Bewilligung), or the subsidy is lost.
