Tax-free employee gift: a song under €60
In Germany, a personalised song can be given to an employee tax-free for a personal occasion: the Herzlied (€49) stays under the €60 threshold for personal occasions and, at the same time, under the €50 monthly threshold. This holds when the conditions are met, first of all a gift in kind rather than cash. This page explains both thresholds and places the three packages.
Herzlied €49 · Lieblingslied €79 · Meisterstück €149
The two thresholds, kept apart
German wage-tax law sets two separate thresholds for gifts to employees. Which one applies depends on the occasion. Both are thresholds, not tax-free allowances, and that is the most important point in practice.
€60 personal-occasion threshold
up to €60 per occasion · R 19.6 LStR / EStG
A gift in kind for an employee’s personal occasion, such as a birthday, a wedding or a work anniversary, stays free of wage tax and social contributions up to €60 gross (incl. VAT) per occasion. The value is counted per occasion, not per year. The condition is a gift in kind, never cash.
€50 monthly threshold for benefits in kind
up to €50 per month · § 8 (2) EStG
Separately, the employer may grant each employee benefits in kind up to €50 gross per month with no particular occasion. This monthly threshold applies when there is no personal occasion. Again: in kind only, never cash.
Both are thresholds
no buffer once exceeded · important in practice
Both amounts are thresholds, not tax-free allowances. Once the threshold is exceeded, the entire amount becomes taxable, not just the part above it. A gift of €61 for a personal occasion is therefore fully taxable, not only the one euro over the line.
How the song fits the thresholds
The Herzlied (€49) sits below both thresholds and is therefore, for a personal occasion, the tax-free option. The Lieblingslied (€79) and the Meisterstück (€149) exceed both thresholds; they are not tax-free, but may where applicable be taxed at a flat rate. The table sums up the classification at a glance.
| Package | Price | Under €60 (occasion) | Under €50 (month) |
|---|---|---|---|
| Herzlied | 49 € | yes | yes |
| Lieblingslied | 79 € | no | no |
| Meisterstück | 149 € | no | no |
Amounts gross, incl. VAT. The exemption applies when the conditions are met, never automatically in every case.
The conditions for the exemption
The exemption is tied to conditions, not to price alone. Four points must come together: it must be a gift in kind and not cash; it must be granted on top of the salary owed in any case, not as a salary conversion; the €60 threshold requires a personal occasion; and the relevant threshold must not be exceeded.
A personalised song meets the in-kind condition well: it is a concrete, designated service with a fixed value, not a freely available sum. The personal occasion is clear for a birthday or a work anniversary. Giving the song to the employee on top of salary brings the central points together.
The Liedify guide for employers gathers the use cases: For businesses. On the personal-occasion side, the work anniversary connects directly: Work-anniversary song. The packages and amounts are on the pricing page.
General information, not tax advice
This page gives general information on the legal situation in Germany and is expressly not tax advice. Whether a specific gift stays tax-free in an individual case depends on the exact circumstances. When in doubt, clarify it with your tax adviser or the responsible tax office. The details reflect the 2026 position and are subject to change.
Questions about the exemption
As a rule, yes. What matters is that the employee receives a thing or a designated service rather than a freely available sum of money. A personalised song is a concrete, designated service with a fixed in-kind value, not cash. If the classification is unclear in an individual case, the tax adviser or the tax office decides.
The Herzlied at €49 fits the €60 threshold
For a personal occasion, you give the Herzlied tax-free, provided the conditions are met. The questionnaire is quickly filled in, the song arrives digitally.
Order the Herzlied→General information, not tax advice. 2026 position.