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Income Thresholds, Tax-Free Amounts and Tax Brackets

Germany uses a progressive income tax system, which means the more you earn, the higher your tax rate. Below are the income tax brackets for both single individuals and married couples or registered life partners:

  • Basic Tax-Free Allowance (Grundfreibetrag):
    The basic allowance is the amount of income you can earn without paying income tax. For 2024, the basic tax-free allowance is €11,604 for single individuals and €23,208 for married couples or registered life partners.
  • Income Tax Brackets for Singles:
  • 0%: Up to €11,604
  • 14% – 42%: From €11,605 to €62,810
  • 42%: From €62,811 to €277,825
  • 45%: Over €277,825
  • Income Tax Brackets for Married Couples or Registered Life Partners:
  • 0%: Up to €23,208
  • 14% – 42%: From €23,209 to €125,620
  • 42%: From €125,621 to €555,650
  • 45%: Over €555,650
  • Child Allowance (Kinderfreibetrag):
    Parents receive a tax-free allowance of €4,656 per child per parent in 2024, which doubles for married couples or registered life partners.

Disclaimer:
The information provided in this blog post is for general informational purposes only and does not constitute tax, legal, or financial advice. While we strive to ensure the accuracy and timeliness of the information, tax laws are complex and subject to change. We recommend consulting with a certified tax advisor for advice tailored to your individual circumstances. In terms of financial consultation, we collaborate with German Sherpa Financial Solutions, specializing in services for Expats in Germany. Please note that this content does not serve as tax consulting.