The 2025 tax reform will not favor all workers in Germany. However, there are those who will particularly profit from this move.

More or less money in the new year? With the tax reform from 2025, salaries will change for many workers. German media calculated who benefits from the tax reform and who gets more money.

The “federal government” itself writes that with adjusted tax rates it would like to significantly reduce the burden on citizens in the coming years. But will workers from the upper class also receive tax relief in the new year?

Tax reform in Germany

First of all, workers who are currently short of money and need every cent of their salary fear that the tax reform will burden them.

After all, for most people taxes are associated with deductions. But a look at the tax changes from 2025 shows: There is no reason to worry. The lower and middle class in particular should benefit from the tax change from 2025, according to initial calculations by German media.

This is how net salary for singles should change from 2025:

Change in gross salary in 2025

• Gross salary – 2,000 euros, salary increase +59 euros
• Gross salary – 2,500 euros, salary increase +54 euros
• Gross salary – 3,000 euros, salary increase +55 euros
• Gross salary – 3,500 euros, salary increase +55 euros
• Gross salary – 5,000 euros, salary increase +76 euros
• Gross salary – 5,500 euros, salary increase +175 euros
• Gross salary – 7,500 euros, salary increase +214 euros

The German newspaper refers to calculations by the Taxpayers Association. The figures for 2025 should take into account the increase in the basic allowance, the increase in contribution assessment limits, and the increase in GKV contributions by 0.6 percentage points.

However, anyone with gross salaries higher than 8,500 euros can expect a salary lower by 159 euros in 2025.

Tax reform 2025: This will change for workers

For those who have different income levels during the year, the basic allowance could also play an important role. Because the basic allowance will even be increased retroactively up to 2024 by 180 euros. This means that the basic allowance from 2024 will amount to 11,784 euros, German media write.

From 2025, the basic allowance will increase by an additional 300 euros to 12,084 euros, and from 2026 by 252 euros to 12,336 euros.

Source: fenix-magazin.de