German tax and social security figures for 2026 and 2027

These are the German tax, social insurance, wage and pension figures that most household plans depend on, for 2026 and 2027. Each 2027 value shows how far it has got through the legislative process. As of 25 October 2026, several are still drafts.

The 2026 values are in force. They come from the statute or regulation text, the Federal Ministry of Health (BMG), Deutsche Rentenversicherung (DRV) or the Federal Ministry of Finance (BMF). For 2027 the status labels mean: enacted (law or regulation published), cabinet decision (adopted by the federal government, still needs the Bundesrat) and draft (a government bill still before the Bundestag, so values can change). Each value links to its source. We will update this page when the status changes.

Income tax and investment tax

All 2027 income tax values come from the government’s “Einkommensteuerreformgesetz 2027” (BT-Drs. 21/8235). The cabinet adopted it on 2 September 2026, and the Bundestag held the first reading on 8 October 2026. It is not law yet. The draft also starts the 45 % rate at €250,000 and adds a 47 % rate from €280,000 of taxable income for a single person. It also raises the employer’s flat tax on Minijobs from 2 % to 5 %.

The Entfernungspauschale has been €0.38 from the first kilometre since 2026. Before that, it was €0.30 for kilometres 1 to 20. The 2026 Vorabpauschale uses the 3.20 % Basiszins and is deemed received on 4 January 2027, so funds are taxed on it in early 2027.

Social insurance: ceilings and contribution rates

The cabinet adopted the 2027 ceilings on 7 October 2026. The Bundesrat must still approve them (Federal Government, 12 October 2026). The health ceiling rises faster than wages because § 223 Abs. 4 SGB V, which is already law, adds €3,600 a year on top of normal indexation. The rule is enacted; the exact amount is set by the regulation.

Your own health insurer sets your actual Zusatzbeitrag, which can differ from the 2.9 % average. For long-term care, parents with two to five children under 25 pay 0.25 points less per child from the second child. The 2027 childless surcharge comes from the cabinet draft of the Pflegeneuordnungsgesetz (30 September 2026). The 18.6 % pension rate for 2027 is the projection in the Rentenversicherungsbericht 2025. No regulation has fixed it yet.

Minimum wage, Minijob, family and pensions

The Minijob limit is the minimum wage × 130 ÷ 3, rounded up. That is why it rises automatically in 2027. At both minimum wages, the limit allows about 43 hours a month. The Elterngeld limit applies to births from 1 April 2025. It compares taxable income in the last assessed year before the birth, and for couples it uses the sum of both incomes.

The pension value rose by 4.24 % on 1 July 2026, from €40.79 to €42.52. One pension point (Entgeltpunkt) earned in 2026 therefore pays €42.52 a month in today’s terms. The July 2027 value depends on wage growth and will be set in spring 2027. The Rentenversicherungsbericht 2025 projected €44.32, but it started from an assumed July 2026 value that turned out too low, so treat that figure only as a model calculation.

What changes for you: short examples

• Employee earning €80,000 a year. This is above the health ceiling. With the average Zusatzbeitrag, the employee share of health insurance is at most €508.59 a month in 2026 (8.75 % of €5,812.50). If the cabinet ceilings and 2.9 % hold, it becomes €557.81 in 2027, about €49 more a month. The care insurance share (1.8 %, with children) rises from €104.63 to €114.75. The pension share is unaffected, because €80,000 is below both pension ceilings.
• Commuter, 20 km each way, 220 working days. 20 × €0.38 × 220 = €1,672 of Werbungskosten in 2026. Under the old rule it was €1,320. Only the amount above the €1,230 employee lump sum, here €442, adds to your deductions. If the draft lump sum of €1,430 is passed, that extra amount shrinks to €242 in 2027.
• Fund investor. An accumulating equity ETF worth €10,000 on 1 January 2026 has a Basisertrag of €10,000 × 3.20 % × 70 % = €224, capped at the fund’s actual gain for the year. After the 30 % partial exemption, €156.80 is taxable. If your saver’s allowance is already used, that costs about €41 in tax and Soli, taken from your account in January 2027.
• Family with two children. Kindergeld is €518 a month in 2026, or €6,216 a year. The draft €267 per child would make it €6,408 in 2027. For high earners the tax office automatically checks whether the child allowance is worth more (Günstigerprüfung).
• Minijob. At €603 and €13.90 an hour you can work about 43 hours a month in 2026. At €633 and €14.60 it is still about 43 hours in 2027.
• Working past retirement age. If you keep working as an employee after the standard retirement age, up to €2,000 a month of wages is tax-free under the Aktivrente. Social contributions are still due. It does not apply to the self-employed or to Minijobs.

Which Zenarios calculators use these figures

• The German salary calculator uses the 2026 tax tariff, the employee lump sum, the contribution ceilings and rates, including your insurer’s Zusatzbeitrag and the childless surcharge, plus the Minijob and Midijob limits.
• The Vorabpauschale calculator and the ETF savings plan calculator use the Basiszins, the partial exemption and the saver’s allowance.
• The pension gap calculator uses the pension value and the pension contribution ceiling. The part-time calculator shows the pension points you lose by working less.
• The parental leave calculator uses Kindergeld and the €175,000 Elterngeld limit.
• The retirement age calculator works out your earliest pension date and the 0.3 % deduction per month.

Commuting costs above the employee lump sum come back through your tax return. The salary calculator shows payroll tax (Lohnsteuer) and does not model them. For the full picture of taxes over the years, see the German tax plan in Zenarios. To read the pension figures in context, start with FIRE in Germany.

Work it out with your numbers

• Vorabpauschale calculator (German ETF tax)What tax is due on my funds in January?
• German salary calculator (gross to net)What do I take home from my salary?

Common questions

Which 2027 values are already final?

As of 25 October 2026, the minimum wage of €14.60, the Minijob limit of €633 and the rule that raises the health contribution ceiling are enacted. The 2027 contribution ceilings are a cabinet decision awaiting the Bundesrat. The 2027 income tax values, including the Grundfreibetrag, Kindergeld and the employee lump sum, are a government draft.

What is the contribution ceiling (Beitragsbemessungsgrenze) in 2026?

In 2026 it is €8,450 a month (€101,400 a year) for pension and unemployment insurance, and €5,812.50 a month (€69,750 a year) for health and long-term care insurance. Pay above these amounts carries no further contributions.

How high is the minimum wage in 2026 and 2027?

The statutory minimum wage is €13.90 an hour from 1 January 2026 and €14.60 an hour from 1 January 2027. Both steps are set by the Fifth Minimum Wage Adjustment Regulation (MiLoV5).

Will this page be updated when 2027 values change?

Yes. The 2027 values carry their legislative status. When the Bundesrat approves the ceilings, the BMG sets the average Zusatzbeitrag or the income tax law passes, the table and status are updated.

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Written by the maker of Zenarios, a software engineer. These guides explain planning concepts and the product; they are not a personalized financial recommendation. Illustrative calculations are not results from your plan.