§ 3 No. 51 EStG explained simply
The legal basis is § 3 No. 51 of the German Income Tax Act: a tip given to an employee by a third party, voluntarily and without any legal entitlement, on top of the agreed wage, is tax-free — with no fixed limit.
Three conditions must be met: voluntary, from a third party (a guest, not the employer), and without any legal entitlement. A contractually fixed service charge doesn't count as a tip for tax purposes and is fully taxable.
Employees vs. self-employed
As an employee — in service, at a salon, or on a mini-job — your voluntary tips stay tax-free. As a self-employed worker, say a freelance tour guide or a chair-renter at a salon, tips count as taxable business income instead. § 3 No. 51 EStG only applies to employees.
Does digital tipping change anything?
No. Whether cash, debit card, QR code, or app — the same tax rule applies. The only difference: digital tips are documented automatically, which works in your favour if it's ever in question.