Status: 07.12.2023, 14:14 PM
The new year starts with good news for employees and the self-employed. You can expect more net from gross. Despite fluctuations, a few hundred euros are possible for almost everyone.
Munich - German Finance Minister Christian Lindner (FDP) has earmarked 35 billion euros for tax relief. Specifically, this concerns the increase in the basic tax-free allowance up to which taxpayers no longer have to pay any tax at all – it rises from 10,908 to 11,604 euros and the increase in the child tax allowance – from 6,024 to 6,384 euros. In addition, the tax rates are adjusted to the inflation rate, i.e. the federal government compensates for the so-called cold progression. This is when citizens have to pay more to the tax office because of the rising tax rate, even if their salary increase only compensates for inflation.
And there is another point that relieves many taxpayers. From January, the tax-free allowance from which the solidarity surcharge is due will also increase. A single person only has to pay the solos if he pays more than 18,130 euros in income tax – for this he would have to earn almost 80,000 euros. Important: For married couples, all earnings limits are doubled.
What exactly is in it?
The financial scientist Frank Hechtner from the University of Erlangen-Nuremberg has now calculated how the new regulations will affect individuals for the Handelsblatt. According to this, a single person with an income of 3,000 euros per month can expect 172 euros in relief next year. If he earns 5,000 euros, he is left with 292 euros more net from the gross. The relief is even higher for families with two children. If the partners earn between 2,500 and 4,000 euros per month, the relief amounts to 508 euros per year.
Social security contributions rise
Incidentally, the tax relief would be much higher if social security contributions did not rise in parallel with the relief. Among other things, this involves the additional contribution for statutory health insurance and the increase in the contribution assessment limits for pension and unemployment insurance as well as statutory health and long-term care insurance. According to Hechtner's calculations, a single person will have to pay 722 euros more for this at the peak next year, while a high-income family will have to pay 541 euros more at the peak. A large part of the relief is eaten up by this, but overall, at least that's how experts see it, there is still a decent plus left for many.
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Fancy a voyage of discovery?
And further relief is already in sight. This is because there will be further adjustments in the middle of the year. How these turn out, however, depends on how much the citizens' allowance is raised. If the standard rate is significantly increased, the federal government will also have to increase the tax allowances for constitutional reasons. Currently, the originally planned increase in citizens' allowance is still being hotly debated – and questioned in the federal government, especially by the FDP.