Last reviewed: 18 August 2026. German tax rules change often; the figures here were checked against the Einkommensteuergesetz (EStG) in force on that date, with official sources linked at the bottom. This is general information, not tax advice. Verify with your HR or a Steuerberater before relying on it.
The first time a colleague explained “bike leasing” to me in a German office, I pictured a cycling gym membership. Then he pointed at the 3,500 EUR e-bike he rides to work and said it costs him about half of what it lists for. Not free, not cheap. Half.
Short version: genuinely good value if you would buy a decent bike anyway and can stay with your employer for the full term. Otherwise it quietly becomes an expensive way to rent a bicycle.
What bike leasing actually is
Despite the brand name, this is not JobRad-specific. JobRad is the market leader, but BusinessBike, Lease a Bike, eurorad and others sell the same model; the generic term is bike leasing, sometimes Dienstradleasing.
You pick a bike at a participating shop, your employer leases it from the leasing company, and the monthly lease payment comes out of your salary. Your employer owns it; you get the riding rights and the rental-car responsibility. The interesting part is what happens to your salary next: Gehaltsumwandlung.
The tax mechanics: salary conversion and the “on top of salary” catch
Gehaltsumwandlung means salary conversion: you swap part of your gross salary for a benefit in kind. Your gross drops by the lease rate, your employer uses that money for the bike, and your income tax and social insurance contributions drop with it.
Here is the catch most people miss. German tax law exempts company bikes under Section 3 no. 37 EStG, but only for benefits granted zusätzlich zum ohnehin geschuldeten Arbeitslohn, on top of the salary you were already owed. A salary-sacrifice lease is the opposite, so the exemption does not apply to the JobRad model. The private use of the bike is still a geldwerter Vorteil (benefit in kind), taxable in principle under Section 19 EStG and valued under Section 8 EStG.
In practice the tax on the benefit disappears. Benefits in kind worth up to 50 EUR per month are not taxed at all (Section 8 paragraph 2 sentence 11 EStG; 2026: 50 EUR), and leasing providers value private use at a small fraction of the list price per month. JobRad’s own tax explainer, for instance, applies a “0.25% rule”: a quarter of one percent of the list price per month. On a 10,000 EUR e-bike that is 25 EUR a month, comfortably under the limit; on a typical 2,000 to 4,000 EUR commuter bike it is 5 to 10 EUR. Nothing extra lands on your payslip. Some payroll systems use a higher benchmark closer to the car-style 1%; even 1% of a 4,000 EUR bike is 40 EUR, still inside the threshold.
Two more details. The “on top of salary” exemption sunsets: Section 52 paragraph 4 EStG applies Section 3 no. 37 for the last time to assessment period 2030, so benefits granted before 1 January 2031. If you are self-employed, the private use of a company bike that is not a motor vehicle is not counted as income at all (Section 6 paragraph 1 no. 4 sentence 6 EStG).
The numbers: a worked example
Assumptions first: a blended burden of about 40% (progressive income tax plus social insurance contributions) on a mid-range salary. Earn less, save less; earn more, save more. Figures are illustrative, not quotes.
Take a commuter e-bike listing at 2,400 EUR, leased over 36 months at 40 EUR per month gross:
| Item | Calculation | Amount |
|---|---|---|
| Gross salary sacrificed each month | the agreed lease rate | 40.00 EUR |
| Taxable benefit from private use | 0.25% × 2,400 = 6 EUR, under the 50 EUR limit (2026: 50 EUR) | 0.00 EUR |
| Tax and social contributions saved | about 40% of the 40 EUR sacrificed | 16.00 EUR |
| Your real monthly cost | 40.00 − 16.00 | 24.00 EUR |
| Total net cost over 36 months | 24 × 36 | 864.00 EUR |
So you ride for the equivalent of 24 EUR a month from take-home pay instead of 2,400 EUR in cash today. The saving is real, but not free money: part of the rate is insurance, service and the lessor’s financing cost, and at the end you own nothing unless you pay extra.
When the lease ends: return it, buy it, or take it with you
The standard term is 36 months; shorter terms save less tax. You have three realistic options at the end.
Return it. Hand the bike back and walk away. Painless, but you have paid 864 EUR to ride a bike you do not own.
Buy it. Most contracts include a buyout option (Kaufoption or Übernahmepreis): pay the residual value written into the contract and the bike is yours. With an illustrative residual of 15% of list price (360 EUR), you own the bike for 864 + 360 = 1,224 EUR instead of 2,400 EUR in the shop. Buying below market value is itself a small taxable benefit, which is why providers mention a geldwerter Vorteil at takeover.
Leave the job mid-term. The lease does not care about your notice period. If your new employer offers bike leasing, the contract can often be transferred. If not, you usually owe the remaining lease value or take it over yourself. Check exit terms before you sign, not after the interesting job offer arrives.
The e-bike angle
E-bikes dominate leasing, for arithmetic reasons: the higher the list price, the bigger the absolute saving on sacrificed salary. The tax logic treats most e-bikes as bikes: a Pedelec with pedal assist up to 25 km/h needs no licence plate, so nothing changes. The faster S-Pedelec, assist up to 45 km/h, is a registered motor vehicle, and that flips it into company-car territory with car-style rules. If you want an S-Pedelec, you need the car numbers.
Insurance and other fine print
The lease rate usually bundles bike insurance (theft and damage) and sometimes service. Convenient, but you pay for it inside the rate whether or not you would have bought it. Check whether your household contents insurance (Hausratversicherung) already covers bike theft, and whether the policy covers the e-bike battery, the expensive part. Theft of a leased e-bike means filing the claim yourself while the lease payments keep running. Nobody mentions that at the bike shop.
The ownership logic matters: the bike belongs to the leasing company, you cannot sell it mid-term, and you are responsible for damage like a rental. Because gross is lower for three years, pension contributions and social benefit bases dip slightly. Small for most salaries, but no brochure will mention it.
Who it is genuinely for, and who should skip it
Take it if you would buy a decent bike or e-bike anyway within the next couple of years, your contract is stable enough to outlast the term, and your employer offers the program. The tax saving turns a purchase you were going to make into a cheaper one, with insurance bundled in.
Skip it if you might leave before the term ends, if a cheap used bike is fine, if your salary is low enough that smaller pension contributions matter more than the discount, or if you cannot fully follow the structure. Every perk this good on paper has a lock-in somewhere; find it before signing.
What to ask HR before you sign
- Ask for the exact monthly rate and whether it includes insurance and service.
- Ask how payroll values the benefit, and what your payslip will show as geldwerter Vorteil.
- Ask for the buyout price in writing and the exit terms if you leave mid-term.
- Ask whether the employer could pay the lease on top of your salary instead of from it: that rarer model gets the full Section 3 no. 37 exemption and is the best deal.
- Compare it against the other perk competing for your travel budget: the company car vs cash allowance math.
FAQ
Is bike leasing worth it in Germany?
Yes, for most employees who would buy the bike anyway and can complete the full term. You sacrifice part of your gross salary and effectively keep your marginal tax-and-contribution rate on it, while the private-use benefit usually stays under the 50 EUR monthly threshold (2026: 50 EUR) and is not taxed.
Does JobRad cost the employee anything?
Yes. It is a salary-sacrifice lease: part of your gross salary covers the monthly rate, and your net pay falls by the rate minus the tax you save. In the example above, that is 864 EUR over 36 months, roughly a third of the list price, plus the buyout to own it.
Can I buy the bike after the leasing period?
Usually yes, through the buyout option at the residual value stated in the contract. Buying below market value can create a small taxable benefit. Get the residual value in writing before you sign.
Is bike leasing worth it if I might change jobs?
Probably not. The lease runs 36 months and does not end with your notice period. If your next employer has a bike-lease program, the contract can sometimes transfer; otherwise you may owe the remaining value.
General information, not tax advice. Rates and thresholds change; everything here was checked on 18 August 2026. Confirm the current rules with your HR or a German tax adviser before relying on them.
Sources
- EStG Section 3 no. 37: tax-free benefit only for bikes granted in addition to salary: https://www.gesetze-im-internet.de/estg/__3.html
- EStG Section 8 paragraph 2: valuation of benefits in kind and the 50 EUR per month limit: https://www.gesetze-im-internet.de/estg/__8.html
- EStG Section 6 paragraph 1 no. 4: what counts as a motor vehicle, and the self-employed rule: https://www.gesetze-im-internet.de/estg/__6.html
- EStG Section 52 paragraph 4: the Section 3 no. 37 exemption applies through assessment period 2030: https://www.gesetze-im-internet.de/estg/__52.html
- JobRad’s employee leasing pages (for how providers describe the 0.25% rule and the 36-month term): https://www.jobrad.org/arbeitnehmer
- Federal Ministry of Finance: https://www.bundesfinanzministerium.de
Related reading on Eri in Germany
- Buying a bike in Germany: prices and shops if you decide to buy instead
- Finding a job in Germany from India: employer perks come up during negotiation
- Health insurance in Germany: public vs private: your first employer benefit
- Sending money from Germany to India: keep the savings out of transfer fees
