Together Stronger than Before - Benefits for Citizens


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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.

• Legal bases (in German)

Payment of a child bonus

In September 2020, an additional bonus in the amount of € 360 will be paid for each child for whom family allowance is received.

• Further information (in German)

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.

• Legal bases (in German)