Basic tax-free allowance

Steuernab 9 J.

The amount of income that stays tax-free in Germany. About €11,600 a year in 2026. No income tax is due up to this amount.

The Grundfreibetrag (basic tax-free allowance) is the part of your income on which you pay ZERO tax in Germany – it protects the subsistence minimum from taxation.

Current value 2026:

• €12,348 per person (€1,029/month)
• Married couples (jointly assessed): €23,568
• Raised almost every year (based on the subsistence minimum report)

Historical development:

• 1995: €5,616
• 2005: €7,664
• 2015: €8,472
• 2020: €9,408
• 2026: €12,348 (more than doubled since 1995!)

Why the basic allowance matters:

• For employees: anyone earning under €12,348/year pays ZERO income tax
• For mini-jobbers: €603/month × 12 = €7,236 – far below the allowance
• For students: holiday job earnings below the allowance = wage tax is fully refunded via the tax return

Constitutional law: in 1996 the Federal Constitutional Court ruled that the subsistence minimum MUST be tax-free. That's why the basic allowance is adjusted regularly.

Did you know? In 1996, following a Constitutional Court ruling, the basic tax-free allowance was more than doubled at a stroke – it has since risen from €5,616 to €12,096 (2025).

→ Gehaltsrechner

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