• Germany edition
 
Tax payers 'could save up to €240' in 2013
Photo: DPA

Tax payers 'could save up to €240' in 2013

Published: 04 Jan 2013 10:25 GMT+01:00
Updated: 04 Jan 2013 10:25 GMT+01:00

Finance expert at Berlin's Free University, Frank Hechtner, figured out that Germans could be saving up to €20 a month in the coming year compared with what they paid in 2012, the Süddeutsche Zeitung said.

Thanks to the healthy state of the country's national pension pot, employees may well find themselves paying less into it this year. The government is planning on reducing monthly contributions from 19.6 percent to 18.9 percent of a person's wage.

This, if passed, could see an unmarried person earning €3,400 per month saving €185 in taxes each year. A married couple with two children could save €200.

The full effect will not become clear until April, when changes will be given the go ahead and come into force.

Potential upcoming reforms could, Hechtner said, also benefit lower earners by €100 per year. Currently, Germans may earn up to €400 per month without paying taxes but this figure should rise to €450 over 2013. Those earning up to €850 per month should pay reduced taxes.

But as Hechtner explained, although pension contributions may drop, Germans could find themselves paying slightly more in nursing care insurance. This is set to rise from 1.95 percent of a person's monthly wage to 2.05 percent.

Initially suggested tax reforms by the ruling Christian Union and Social Democrat coalition were rejected by the Social Democrats, who hold a majority in the Bundestag upper house of parliament. If they had been passed, middle earners could have been paying up to €350 less in taxes 2013.

The Local/jcw

The Local (news@thelocal.de)

Don't miss...X
Left Right

Your comments about this article

13:45 January 4, 2013 by smart2012
In contradiction to the article that more money are needed to close gap in budget by 2014. Yes, Verkel propaganda.

Also, am paying every year app 32000 euros in taxes, and those guys make a big deal of maybe saving 150 euros ie 0.46%? Lol
10:03 January 5, 2013 by Englishted
So the more you earn the greater your tax cut ,thats the way to close the gap between rich and poor to make a more equal and fair society.

Also there is a article here today about more austerity measures needed in Germany ,you can't have it both ways unless as many believe the ruling parties are reverse Robin Hoods stealing from the poor to give to the rich.
Today's headlines
Real fur Knut on display in Berlin museum
Knut's new home in Berlin's Natural History Museum. Photo: DPA

Real fur Knut on display in Berlin museum

Germany’s favourite polar bear Knut is set to pull in the crowds again - but this time from a display case. More than three years after his death, his real fur has been used to create a new Knut for a museum exhibition. READ  

And the winner of the EU single market is...
German incomes are higher thanks to the EU. Photo: DPA

And the winner of the EU single market is...

Germany and Denmark came out as the winners of the European Union's single market in a study released on Monday. Integrating economically with its neighbours has helped the German economy grow an average of €37 billion a year since 1992. READ  

Synagogue attacked, rabbi gets death threats
Police check the outside of a synagogue in Wuppertal for evidence of arson on Tuesday. Photo: DPA

Synagogue attacked, rabbi gets death threats

A wave of anti-Semitism in Germany, unleashed by the Gaza crisis, shows no sign of abating. A synagogue was attacked on Tuesday morning, a rabbi received death threats and anti-Jewish comments online have increased. Attacks on mosques have also risen. READ  

UBS pays Germany €300m in tax fight
Photo: DPA

UBS pays Germany €300m in tax fight

Top Swiss bank UBS settled a long-running legal dispute with Germany on Tuesday by agreeing to pay a fine of €300 million. Germany suspects UBS of having helped account holders hide millions from the taxman. READ  

Two die as heavy rain and floods hits west
Münster was one of the areas worst hit by Monday night's heavy rain. Photo: DPA

Two die as heavy rain and floods hits west

UPDATE: A man drowned in his cellar on Monday night as heavy rain battered parts of north-western Germany. A second man died when he tried to drive through a flooded street. The emergency services were in places overwhelmed by hundreds of calls. There are further weather warnings in place for Tuesday. READ  

EU to hit Russia with tough sanctions
Merkel has finally lost patience with Putin. Photo: DPA

EU to hit Russia with tough sanctions

The EU is set to agree a raft of new wide-ranging sanctions against Russia on Tuesday, after Germany changed its stance on upping the economic pressure on Russian President Vladimir Putin over the Ukraine crisis. READ  

'Mad professor' to swim length of Rhine
Professor Andreas Fath, 49, in training along the Rhine in Baden-Württemberg in June. Photo: DPA

'Mad professor' to swim length of Rhine

German chemistry professor Andreas Fath started on Monday a gruelling four-week solo swim down the Rhine river for the benefit of science and the environment. READ  

Unfair advantage for one-legged long jumper?
Markus Rehm became German champion on Saturday. Photo: DPA

Unfair advantage for one-legged long jumper?

Paralympics gold medallist Markus Rehm triumphed over his non-disabled rivals on Saturday, winning the German long jump championship. But athletics officials are now reviewing whether his prosthetic leg gave him an unfair advantage. READ  

Woodcarving champions - in pictures
Photo: DPA

Woodcarving champions - in pictures

Chainsaws, wood planes and sand paper were out over the weekend in Saxony-Anhalt where more than 30 artists competed in the International Woodcarving Championships. READ  

Hamburg could treat infected Ebola doctor
Liberian health workers in protective clothing bury an Ebola victim in early July. Photo: DPA

Hamburg could treat infected Ebola doctor

UPDATE: A doctor infected with the deadly Ebola virus while trying to help stop it spreading through West Africa could travel to a Hamburg clinic for treatment. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Gallery
Hamburg harbour lit up in blue
Business & Money
JobTalk: 'Application process is failing'
Photo: Bundesarchiv/Bild 183-S45825
Culture
Germany puts 700,000 WWI docs online
Photo: DPA
Society
This man wants to give all of us €12,000 a year
Photo: DPA
Education
Top university switches master's courses to English
instagram.com/gotzemario
Gallery
Germany's World Cup stars share their holiday photos
Travel
Plans unveiled for bike trail along former Iron Curtain
Photo: DPA
Sport
Yoga helped Jogi's boys bring World Cup home
Photo: DPA
National
Pressure on police over anti-Semitic protests
Photo: DPA
Gallery
The Local List: 12 best words in German
Photo: DPA
Politics
View from Germany: 'Nobody will win in an economic war with Russia'
Photo: DPA
Gallery
German Bucket List: How many of these can you tick off?
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Photo: Shutterstock
Features
Some of the most embarrassing mistakes you can make in German
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,218
jobs available
Toytown Germany
Germany's English-speaking crowd