The Grundfreibetrag (basic tax allowance) guarantees the tax-free subsistence minimum. Any annual income below this threshold is not subject to income tax.
Development of the Grundfreibetrag
- 2021: 9,744 €
- 2023: 10,908 €
- 2025: 12,096 €
- 2026: 12,348 € (+252 €)
- Couples (joint assessment): doubled amount
Impact on net salary
The 252 € increase in 2026 translates to a tax reduction of approximately 60–155 €/year depending on income level. The adjustment aims to compensate for "bracket creep" (kalte Progression).
Sources: § 32a EStG, subsistence minimum report, BMF.