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Tax relief
Tax and other financial relief
Relief from taxes and social security contributions
Families are to be relieved financially quickly and noticeably in the energy crisis. To this end, the German government has launched relief packages and tax relief.
High inflation and rising prices in the wake of Russia's war of aggression on Ukraine have made life significantly more expensive. Government measures provide financial security so that people can continue to afford to live. Many measures have a direct impact on net wages.
The home office allowance can be applied for up to 210 days per year from 2023. An income tax deduction of 6 euros is possible. That is a maximum of 1,260 euros per year.
Low-income earners will be relieved of social security contributions. The income limit has increased to 2,000 euros for midi jobs as of January 1, 2023.
The employee lump sum in income tax was increased by 200 euros to 1,200 euros. Income-related expenses can thus be claimed as a lump sum without submitting receipts in the amount of 1,200 euros.
To cushion the special burdens of single parents, the relief amount was increased from 4008 euros in 2022 to 4260 euros in 2023. With several children, the relief amount increases from the second child by 240 euros per child.
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The basic allowance will be raised from January 1, 2023 by 561 euros to 10,908 euros and from January 1, 2024 by a further 696 euros to a total of 11,604 euros.
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The top tax rate will be raised in 2023 from 58,597 euros to 62,810 euros. From 2024, the top tax rate will be levied from an annual income of 66,761 euros.
Employees who commute to work receive a flat rate of 38 cents (previously 35 cents) from the 21st kilometer.
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If the collective bargaining partners agree on additional payments, the federal government is willing to make a payment to employees in the amount of 3,000 euros duty-free - that is, without deducting taxes and social security contributions.
Taxpayers are to be able to deduct their pension contributions in full as early as January 1, 2023 (two years earlier than planned). In the future, pensions will be taxed in the payout phase in old age. To compensate for this, expenses for old-age provision will be tax-deductible during employment.
Special regulations for short-time allowance have been extended until June 30, 2023, for the security of employees and companies.
On January 1, 2023, the new citizen money has replaced the previous unemployment benefit II (called Hartz IV) and social benefit. From 2023, a single adult receives 502 euros - 53 euros more than before.
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Also the rule rates for children were significantly increased - by 33 to 44 euros more per month depending on age. The requirements will be adjusted in the future no longer retrospectively, but forward-looking to the inflation rates.
Calculate your personal tax relief for the year 2023.Relief Calculatorof the Federal Ministry of Finance is online.
For detailed information on how to benefit from the energy flat rate, visit the website of the Vraucherzentrale.
If you have debts or serious payment problems, contact the debt counseling service in North Rhine-Westphalia directly. The experienced counselors will help you. You can find a local counseling center via the portal www.meine-schulden.de/beratungsstellen.
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More informationLinks for further reading
Further information on the relief in 2023 is available on the Internet portal of the Federal Ministry of Economics.
