Germany income tax 2026: Grundfreibetrag, tariff and deadlines

Germany’s tax year is the calendar year. Employers deduct wage tax (Lohnsteuer). Many employees file a return anyway, because it often brings a refund.

Income tax tariff 2026 (§32a EStG, single)

Taxable income (zvE)	What happens
up to €12,348	0% (Grundfreibetrag)
€12,349 – €69,878	progressive, starting at 14% and rising to 42%
€69,879 – €277,825	42%
over €277,825	45%

Married couples filing jointly use splitting: the tax on half their joint income, doubled.

Common deductions and extras

• Arbeitnehmer-Pauschbetrag: €1,230 flat deduction for work expenses, unless your real costs are higher.
• Solidaritätszuschlag: 5.5% of income tax, but only when your income tax is above €20,350 (€40,700 joint). These are the limits in the current text of §3 SolZG.
• Social insurance 2026: pension insurance 18.6% in total and health insurance 14.6% plus an average 2.9% top-up, normally split between employee and employer. Care insurance is 3.6%. Contribution ceilings are €101,400 a year for pension and €69,750 for health insurance.

Who must file

Employees must file in some cases (§46 EStG), for example:

• other income without wage tax of more than €410
• several employers at once (tax class VI)
• couples on tax classes III/V
• an allowance entered on your wage-tax record

Self-employed people, traders and landlords always file.

Deadlines for 2025 returns (§149 AO)

• Without a tax adviser: 31 July 2026.
• With a tax adviser or Lohnsteuerhilfeverein: last day of February 2027 (§149(3) AO: end of February in the second year after the tax year). The tax office can ask for it earlier.

VAT (Umsatzsteuer)

19% standard, 7% reduced (food, books and similar items).

Moving from India

If you move from India to Germany, both countries’ rules can apply in the year you move.

• Check your Indian status for that year in Residential status. It decides whether India taxes only your Indian income or your worldwide income.
• Savings accounts usually need to change to NRO/NRE accounts. See NRI bank accounts.
• Money you send abroad before you leave falls under the Liberalised Remittance Scheme. See Foreign remittance (LRS).
• If both countries tax the same income, India’s tax treaty with Germany may give relief. Read the treaty text before you rely on it.