Published: 08.09.2026
Germany’s governing coalition has agreed on a package including tax relief for families and low- and middle-income earners, partly financed by higher charges on wealthy taxpayers. The government is also discussing new levies and significantly higher borrowing, while the main changes still require legislative approval.
According to sources, the reform is intended to redistribute the tax burden: families and low- and middle-income earners may receive relief, while wealthy taxpayers may face additional charges. For people relocating to Germany, this matters mainly once they become tax residents or earn income there, as the changes could affect take-home pay and household budgets. The package consists of planned measures rather than an immediate change in the rules. It is therefore most relevant to families and employed residents planning their finances for a longer stay.