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Grundfreibetrag 2026: €12,348 Tax-Free — What It Means for Your Net Pay

In 2026 the basic tax-free allowance rises to €12,348 (€24,696 for couples). Here is what changes, who benefits, and how it affects your net salary.

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Grundfreibetrag 2026: €12,348 Tax-Free — What It Means for Your Net Pay
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  • The basic allowance rises €252 to €12,348 for 2026 (€24,696 for married couples).
  • Income up to this amount is completely income-tax-free.
  • The increase slightly raises the net pay of almost every employee.
  • Pensioners, students and mini-jobbers benefit too.

The Grundfreibetrag is the portion of income on which no income tax is due — the tax-free subsistence minimum. In 2026 it rises to €12,348 for single people and €24,696 for jointly assessed married couples. That is €252 more than in 2025 and slightly raises almost every employee's net pay.

Grundfreibetrag 2026: the current figures

YearSingleMarried couples (joint assessment)
2024€11,784€23,568
2025€12,096€24,192
2026€12,348€24,696

Only each euro above the allowance is taxed — starting at the entry rate of 14%.

What does the allowance mean for your net pay?

Because a larger share of your income stays tax-free, income tax falls slightly — so your net salary rises a little in 2026 even without a pay rise. For most people the relief is in the low tens of euros per year, together with the tariff adjustment that offsets "cold progression".

To see what net remains at your gross salary, check our gross-to-net tables — the 2026 allowance is already built in.

Who benefits from the allowance?

  • Employees: it is built into wage tax automatically — you do nothing.
  • Pensioners: if the taxable pension is below the allowance, no tax is due.
  • Students and mini-jobbers: earn under €12,348 a year and you pay no income tax, reclaiming any withheld wage tax via your return.
  • Self-employed: profit up to the allowance is also income-tax-free.

The allowance and your tax class

The Grundfreibetrag is already included in tax classes I to IV. It is not applied in classes V and VI, which is why wage-tax deductions there are so high. Couples should therefore choose their tax class combination deliberately.

Frequently asked questions

How high is the Grundfreibetrag in 2026?

In 2026 it is €12,348 for single people and €24,696 for jointly assessed married couples — €252 more than in 2025.

Do I have to apply for the allowance?

No. It is built into the wage-tax tariff and every tax calculation. Nothing separate is required.

Do I pay no tax at all below the allowance?

For income tax: yes. No income tax is due up to €12,348 of taxable income. Social contributions (health, pension, care and unemployment insurance) are separate from this.

Does the allowance apply per person?

Yes. For jointly assessed couples it doubles accordingly to €24,696.

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Anna Schmidt
Anna Schmidt
Author & editorial team · Reviewed by Markus Weber

Anna Schmidt writes practical money guides for TopicDrill · View all →

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