Tax, accounting, and operational guides for Germany

The Grundfreibetrag is the part of your income that stays completely tax-free. In 2026 it is EUR 12,348 for singles and EUR 24,696 for jointly assessed married couples. Income tax only applies to every euro above that. For the self-employed the basic allowance matters even more, because (unlike employees) no wage tax is withheld for them, so they have to keep track of their own tax burden.

The Grundfreibetrag protects the subsistence minimum (Existenzminimum): if you earn just enough to live on, you should not pay tax on it. That is why the figure rises almost every year, to offset inflation and rising living costs. You do not have to apply for it, the tax office builds it into the income tax tariff automatically.