Tax relief in Germany for 2026 sounds good. But for many employees, net salary will actually fall. According to payroll calculations by DATEV (which processes salaries for ~14.7 million employees), the tax cuts will be largely offset by higher deductions. Why? • Higher health insurance contributions • Increased social security contribution ceilings • Minimal real impact of tax relief at lower incomes Key takeaways: – Up to €5,500 gross → only marginal net increase – Low-income married couples →

How PAYE Taxpayers can have an Underpayment of Income Tax | Boyle Payroll Project Management - BPPM