Tax Changes 2026 Germany
Tax-free allowance, child benefit, tax brackets - all important changes for employees and families.
Key Changes at a Glance
Tax-Free Allowance
Child Benefit (per child)
Child Tax Allowance
Top Rate Starts At
Employee Allowance
Real Savings: Calculation Examples
Single, 45,000 EUR gross
Family, 2 children, 65,000 EUR
High earner, 90,000 EUR
* Simplified example calculations. Individual savings may vary.
Tax Tips for 2026
Collect Work Expenses
The flat-rate allowance is 1,230 EUR. Every euro above reduces your taxable income. Keep receipts for work equipment, training, and commuting costs.
Check Your Tax Class
Married couples should check if 3/5 or 4/4 is more favorable. The combination doesn't affect annual tax liability but impacts monthly liquidity.
Use Home Office Allowance
You can deduct up to 1,260 EUR/year (6 EUR per day, max. 210 days). This works even without a separate home office room.
File Your Tax Return
The average refund is over 1,000 EUR. Even without obligation, filing is worth it - you can file retroactively for 4 years.
Frequently Asked Questions
What is the tax-free allowance in Germany 2026?
The tax-free allowance (Grundfreibetrag) increases to 12,096 EUR in 2026 (2025: 11,784 EUR). Income up to this amount remains tax-free. This automatically benefits every taxpayer.
How much is child benefit (Kindergeld) in 2026?
Child benefit is 255 EUR per child per month in 2026 (2025: 250 EUR). It is automatically adjusted - you don't need to apply for the increase.
Will the commuter allowance be increased?
The commuter allowance remains at 30 cents for the first 20 km and 38 cents from the 21st km in 2026. No further increase is currently planned.
Does the top tax rate change?
The top tax rate of 42% remains unchanged, but it kicks in at a higher income level in 2026 (approximately 68,480 EUR instead of 66,760 EUR) to offset bracket creep.
What is bracket creep (kalte Progression)?
Bracket creep occurs when salary increases are eaten up by inflation, but you still pay more taxes. The government adjusts tax brackets annually to compensate.