Increase in Tax Exemption Threshold Benefits Single and Married Workers in Germany
Germany is set to raise the non-taxable income threshold for individuals retroactively from January 1, increasing it by 180 euros to 11,784 euros. Married couples will see a 360 euro increase. This adjustment will result in noticeable net increases in December paychecks for employees, while self-employed individuals will benefit in their 2024 tax returns. The increase will improve tax circumstances for all but low-income earners who pay less than 34 euros in annual income tax, according to tax expert Matthias Warneke.