Sec. 22 no. 3 EStG Guide · as at 10/2026

How is staking taxed in Germany?

In short: If you live in Germany, rewards from passive staking of privately held crypto are "other income" under section 22 no. 3 EStG. They count at the euro price when received and are tax free as long as all such income in the year stays below €256. Selling the rewards later is a separate event under section 23 EStG: within one year only the difference to the value at receipt counts; after one year the sale is tax free.

This guide covers passive staking via an exchange or wallet. Liquid staking and running your own validator need separate review.

Administration tax administration view, with source Open not settled by the courts Our view our practice's line

The rules step by step

Income when received

Each credit is income under section 22 no. 3 EStG at your personal rate, valued at the market price at that moment. That value is also your cost basis for the tokens, and their own one-year holding period starts then. Administration The ten-year extension of the holding period does not apply to staked currency and payment tokens (margin no. 63 of the circular of 6 March 2025).

When a reward counts as received

When you can dispose of it (section 11 EStG). Administration Margin no. 48a accepts the claim date during the year; unclaimed rewards must be recognised by 31 December. Our view Claimable, claimed or year end, applied consistently and documented. More: timing of staking and lending rewards.

The €256 limit

All income from services in a year (staking, lending, taxable airdrops) is added up. Below €256 nothing is taxed; at €256 the whole amount is. Related costs are deducted first. The €1,000 limit for private disposals is separate.

Selling the rewards

Within one year of each receipt, only the gain above the value at receipt is taxed under section 23 EStG; after one year the sale is tax free. A loss on sale does not reduce the staking income; it can only be set against private disposal gains. Offsetting losses.

Two worked examples

Invented figures. Staking rewards in 2026 worth €360 when received; no other income from services, no costs, no other disposals; marginal rate 35 per cent, before solidarity surcharge and church tax.

Example 1

Sold at a higher price

€360 is taxable under section 22 no. 3 (limit reached): tax €126. Eight months later the rewards are sold for €480. Gain under section 23: €120, below the €1,000 limit for private disposals, so tax free. Tax is paid on €360, not €480.

Example 2

Price falls after receipt

Again €360 taxable, tax €126. Eight months later the rewards are sold for €150. Loss under section 23: −€210. It does not reduce the €360 of staking income; it can only be offset against private disposal gains and must be declared to be carried back or forward.

Liquid staking and your own validator

Liquid staking: first decide whether depositing coins for a liquid staking token is an exchange or merely a technical wrapper of the same asset. That drives holding period and taxability. Open It depends on the protocol; there is no general rule.

Own validator: running a validator, sharing rewards with others or offering node services may take you out of passive staking. Then the question is whether it is a business, with its own profit calculation and possibly trade tax.

Lending: same system, but the type of income is disputed. How crypto lending is taxed in Germany.

Tax return and records

Staking income goes in Annex SO, section for income from services, not under private disposals. Keep every credit with date, time, amount and token, the euro price per credit with its source, your chosen method, the protocols and wallet addresses, and the full tax report. Annex SO explained.

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Questions and answers

Do I have to pay tax on staking rewards if I never sold?

Yes. Rewards from passive staking held privately are other income under section 22 no. 3 EStG when received, valued at the price at that time. A later sale is a separate event under section 23 EStG.

What is the tax-free limit for staking?

€256 per calendar year, together with all other income from services under section 22 no. 3 EStG such as lending. It is an exemption limit: once reached, the whole amount is taxable.

When is a reward received?

In principle when it is credited and you can dispose of it. Under margin no. 48a of the ministry circular, the administration accepts the claim date during the year; unclaimed rewards must be recognised by year end.

Do I pay tax again when I sell the rewards?

Only on the difference between the sale price and the value at receipt, and only if you sell within one year of each receipt. After that the sale is tax free.

Where do staking rewards go in my German tax return?

In Annex SO (Anlage SO), in the section for income from services under section 22 no. 3 EStG, not under private disposals.

Author: Matthias Steger, German certified tax adviser, nine years as a tax auditor.
Sources: section 22 no. 3 EStG, section 23 EStG, section 11 EStG; Finance Ministry circular of 6 March 2025, margin nos. 48a, 63, 65.
As at: 25 October 2026. Summary for non-native speakers living in Germany; the German guide is the full version. Not individual advice.

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