Together Stronger than Before - Benefits for Citizens

Save - relieve - invest

Two cute little girls sitting on a wooden platform by the river or lake dipping their feet in the water on warm summer day

Reduction of wage and income tax

Income portions from € 11,000 to 18,000 were previously taxed at a rate of 25%. This basic rate will be reduced to 20%. This will result in a relief of up to € 1.6 billion per year for wage and income tax payers. The reduced tax rate in the amount of 20% applies retroactively from 1.1.2020.

Increase of the social security refund

In order to relieve the burden on employees who do not receive taxable income (i.e. whose income is below € 11,000), the maximum surcharge on the transportation deduction will be increased from the previous € 300 to € 400. At the same time, the maximum social security bonus within the framework of the social security refund will also be increased from the previous € 300 to € 400. This applies from the assessment for the calendar year 2020 on.


Calculate your personal benefits at (in German)