What begins as an innocent way to earn a few euros can, under German tax law, become an official income source. Anyone who collects and returns enough bottles and cans for deposit money (“Pfand”) could, in theory, face a tax obligation.
It’s a question that surprises many — including the growing number of people who have turned bottle collecting into a steady side activity or even an online persona.
From small change to taxable income
According to tax experts from the Bund der Steuerzahler (BdSt), the distinction lies in both frequency and amount.
Occasional collecting of bottles is considered harmless. But if the activity becomes regular and total earnings exceed €256 per year, the tax office may classify it as “other income” or even a commercial activity.
That means: anyone earning more than that amount through bottle deposits could be required to declare it as income — especially if they already have a primary job and exceed the general income tax exemption threshold.
The math behind the rule
At a standard bottle deposit rate of €0.08 per bottle, the limit of €256 corresponds to around 3,200 bottles per year. For cans and disposable bottles with €0.25 deposit, the threshold would be reached after about 1,025 items.
For those who collect bottles as a full-time activity, however, different rules apply. Only if the total annual income exceeds €12,096 (the basic tax-free allowance for 2025) would taxes become due.
That would mean returning roughly 151,000 bottles in one year — a feat beyond most casual collectors.
The “Pfandhauptmeister” example
One of Germany’s most well-known collectors is Alex Müller, a 24-year-old from Dresden who became an online figure through his bottle-collecting videos. Over eleven months, he earned around €4,325 from deposit returns.
To keep things transparent, he logs every transaction — from deposit returns to small donations received from fans on social media. Müller, who works full-time as a precision mechanic, has even registered a side business because of his additional online income from TikTok and YouTube.
Still, his story has reignited a wider discussion: where does “hobby income” end and taxable profit begin?
Different rules for jobseekers, citizens’ income, and pensioners
For people receiving unemployment benefits (Arbeitslosengeld I), modest bottle collecting is permitted as long as earnings stay below €165 per month — roughly 2,060 bottles at €0.08 each.
Those on Bürgergeld (citizens’ income) must be more cautious. The Social Code allows a basic monthly exemption of €100 — equivalent to around 1,250 bottles. Anything above that can lead to deductions in benefits.
Pensioners, on the other hand, fall under standard tax rules. They can also earn up to €256 per year in “other income” before taxes apply, provided their total annual income doesn’t exceed the usual basic allowance.
Reality vs. theory
In practice, enforcement is almost impossible. The tax office has no realistic way to track how many bottles someone collects or returns. As tax advisor Daniela Karbe-Geßler from the BdSt admits, “This is more of a theoretical obligation than a real-world risk.”
Nevertheless, the rule highlights an odd quirk in German tax law — one that treats a few thousand empty bottles not just as recyclable waste, but as potential taxable revenue.
For most collectors, that remains an academic concern. But for those who have turned bottle collecting into a minor business or social media brand, keeping records and staying transparent is still the safest bet.
