Germany MOF Announces Various Tax Changes for 2026

Jan. 5, 2026, 5:00 AM UTC

The German Ministry of Finance Dec. 30, 2025 announced various tax changes, effective Jan. 1, 2026. The announcement includes measures to: 1) increase, to 12,348 euros (US$14,496) from 12,096 euros (US$14,200), the basic tax allowance; 2) increase, to 259 euros (US$304) from 255 euros (US$299), the child tax benefit, per child per month, and increase the child tax allowance to 9,756 euros (US$11,453); 3) permanently reduce the electricity tax to the EU minimum rate for the manufacturing sector and abolish the gas storage levy from 2026; 4) increase the commuter allowance to 0.38 euros (US$0.45) per kilometer from the first ...

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