Basic Tax-Free Allowance: Who Qualifies and What You Get
Learn how the Basic Tax-Free Allowance works in Germany and how much of your income remains exempt from income tax.
The Basic Tax-Free Allowance is a set amount of money you can earn each year before you are required to pay income tax.
Who it's for
This applies to every individual taxpayer living in Germany.
What you get
A specific portion of your annual income is exempt from income tax. For the 2024 tax year, you do not pay income tax on earnings up to €11,604.
What it costs you
There is no cost to you. The tax office automatically adjusts your tax status so that this threshold is applied.
The catch to know
It is important to understand that this is not a tax credit. Instead, it is an income threshold, meaning it is the amount of money that is simply not subject to income tax in the first place.
How to apply
- Check your annual income to see if it falls below the threshold.
- Review your tax statements provided by your employer or the tax office.
- If you have worked throughout the year, the tax office handles the threshold automatically.