tax allowances

When it comes to income tax, there are several allowances in Germany that can reduce the taxable income and thus the tax burden . Some important ones are listed below.

Basic allowance:

The basic allowance ensures that the subsistence level remains tax-free. In 2025, it will be 12,096 euros for single people and 24,696 euros for married people (if filing jointly).

child allowance:

Parents can claim an allowance for their children . The child allowance is intended to reduce the tax burden on the costs of maintaining and caring for a child. In 2025, the allowance will be 8,952 euros per child (for parents who file jointly).

Relief amount for single parents:

Single parents can claim an additional relief amount of 4,260 euros per year. For each additional child, the amount increases by 240 euros.

savings allowance:

There is a flat rate of 1,000 euros (2,000 euros for joint taxation) for capital gains (such as interest or dividends). Up to this amount, capital gains remain tax-free .

flat rate for business expenses:

Employees receive a flat-rate allowance for business expenses (e.g. travel costs), the so-called business expense allowance . It amounts to 1,230 euros per year (without proof).

Allowance for people with disabilities:

People with disabilities can claim a flat rate of 384 - 7,400 euros, depending on the degree of disability .

Training allowance:

Parents can receive an allowance of 1,200 euros per year for an adult child who is in training and no longer lives at home.

Care allowance:

Anyone who cares for a relative free of charge can claim a care allowance of up to 600 euros up to 1,800 euros, depending on the level of care required.

These allowances help to reduce taxable income and thus lead to a lower tax burden.

More information can be found on the Federal Ministry of Finance website here .

Note: The specific regulations and allowances may change. It is advisable to carry out further research on the relevant pages of the Federal Ministry of Finance and to consult a tax advisor regarding all individual factors.