Basic personal allowance and income tax brackets adjusted for 2025
The basic personal allowance (Grundfreibetrag) rose to €12,096 for 2025 (from €11,784 in 2024), and the income tax brackets were adjusted for cold-progression. The child allowance (Kinderfreibetrag) was also increased. Retroactive adjustment to 2024 values was included in the package.
Who it affects: All income tax payers; marginal effect on take-home pay.
Bundesministerium der Finanzen ↗ · Bundesregierung (Federal Government) ↗ · verified 2026-04-18