The 32-year-old used the salute to protest against a Left party election campaign stand.
After denying the charge, the young man, a member of the extreme-right network 'Sturm 18,' eventually admitted it and said he felt provoked into giving the salute when Left party campaigners offered him flyers. He added that he was very drunk on that day.
The man is also currently on parole for an attempted arson attack on a mosque in the town of Kosbach in Hesse.
A court sentenced the unnamed neo-Nazi to pay a €600 fine in 60 daily instalments of €10.
German law fordids any public use of Nazi symbols, including the Hitler salute and the swastika.