Income tax tariff: This is how the government could relieve the burden on many taxpayers

The black-red coalition wants to adjust the income tax rate. Exclusive calculations show who could benefit from it – and who wouldn’t.

March 9, 2026, 1:01 p.m

18 Comments

Article summary

Germany is hotly discussing income tax: While the CDU only wants the top tax rate to apply from 80,000 euros, the SPD is calling for a fairer distribution of relief. The tax expert Stefan Bach presents a reform proposal that is primarily intended to relieve the burden on the middle class. His model envisages an increase in the entry tax rate and a shift in the top tax rate. Despite costing 15.5 billion euros, the reform would relieve the burden on the bottom 98 percent of taxpayers, while top earners would be asked to pay more. But financing remains a challenge, as higher taxes or a reform of wealth and inheritance taxes are controversially discussed.

This summary was created using artificial intelligence. Occasionally errors may occur.

Did you find the summary helpful?

Up to an annual income of 12,348 euros you don’t have to pay income tax in Germany. The so-called basic allowance applies.

The tax rates then gradually increase as income increases. At around 20,000 euros the marginal tax rate is already included 24 percent. Anyone who earns an additional 100 euros pays around 25 euros in taxes.

From an income of 69,879 euros Every additional euro will be included 42 percent taxed. This rate is referred to as the top tax, although an even higher tax rate has been in place since 2007 with the tax on the rich.