2026 in Germany: All the changes you need to know about

2026 is just around the corner and it's shaping up to be an eventful year in Germany. From taxes to transport, healthcare and EU visas, these are all the changes you need to know about.

New military service law

From January 2026, a new military service law will apply to male German citizens born on or after January 1, 2008. They will be obliged to complete a questionnaire about their willingness to serve in the German army (Bundeswehr). The questionnaire will be voluntary for female citizens.

After completing the questionnaire, all male German citizens who were born after January 1, 2008, will be obliged to attend a medical examination to determine if they are fit to serve in the Bundeswehr. If they pass the examination, they can decide whether or not to complete military service.

Military service will remain voluntary, so long as the Bundeswehr is on track to reach its goal of increasing volunteer numbers from 80.000 to 260.000 by 2035.

Changes in social security and healthcare

Every year, the German government typically makes changes to how much residents and citizens contribute to the social security and healthcare system, and what they get in return. Here's what's happening in 2026.:

New contribution assessment limit (Beitragsbemessungsgrenze)

Germany's “contribution assessment limit” (Beitragsbemessungsgrenze) determines the maximum amount you can pay into the social security system and is increased annually. The higher threshold means that many people will see their contributions rise as more of their salary becomes subject to social security payments. 

In 2026, the Beitragsbemessungsgrenze for statutory health insurance contributions will rise to 5.812,20 euros per month. The Beitragsbemessungsgrenze for statutory pension insurance contributions will rise to 8.450 euros per month.

If you earn a monthly salary over the Beitragsbemessungsgrenze, you will pay the maximum, but you do not pay any contributions on the portion of your salary that exceeds the threshold.

Increased salary threshold for private healthcare

In Germany, everyone who earns below a certain annual salary must be covered by statutory health insurance. From January 2026, this salary threshold will increase from 73.800 to 77.400 euros per year.

Only people who earn above this amount, and some other groups, including freelancers and foreign students, can opt for a private health insurance provider.

Additional health insurance contributions will increase

Everyone who works in Germany and earns below the salary threshold for private health insurance must pay 14,6 percent of their monthly salary towards their statutory health insurance plan. 7,3 percent is paid by the employee and the other 7,3 percent by their employer. 

However, depending on your health insurance provider, you may also be charged an “additional contribution" (Zusatzbeitrag). According to statutory health insurance providers, “it can be assumed that the actual contribution rates charged by health insurance funds from 2026 will exceed 3 percent on average”. If your provider increases their rates, you will be notified.

Bürgergeld becomes Neue Grundsicherung

The CDU/CSU-SPD government has now agreed that Germany’s long-term unemployment benefit (Bürgergeld) will be reworked and named “Neue Grundsicherung” (new basic support).

The change still faces a vote in the Bundestag, but if it passes, which it is likely to, the changes will apply from July 1, 2026. Under the changes, the standard monthly amount that claimants receive will remain at 563 euros. The Jobcentre will also place more punitive sanctions on claimants who do not attend meetings. 

Read more about the changes in our article: German cabinet agrees to replace Bürgergeld with Neue Grundsicherung.

Child benefit increase

From January 2026, the child benefit (Kindergeld) will increase from 255 euros to 259 euros per month. Everything else will stay the same, and parents do not need to do anything if they are already receiving child benefit.

Child supplement for low-income families

Low-income families who receive child supplement benefits (Kinderzuschlag) will receive slightly more each month in 2026. The amount each family receives is means-tested on the overall household income, but the maximum amount will be 297 euros per month.

Alongside Kindergeld and Kinderzuschlag, families who qualify can also claim emergency financial assistance, known as the immediate child supplement (Sofortzuschlag). In 2026, the Sofortkinderzuschlag amount will increase from 20 euros to 25 euros per month.

Tax-free allowances for families

The tax-free allowance for children (Kinderfreibetrag) is given to certain individuals if it is more favourable to them than receiving the child benefit. The tax-free allowance essentially makes more of the parents’ income tax-free, reducing their overall tax bill and saving them money.

In 2026, the Kinderfreibeitrag amount will rise to 9.756 euros per child.

Full-day childcare right for young schoolchildren

Starting in August 2026, all children in their first year of primary school in Germany will have a right to a full day of childcare. Currently, some pupils only attend school for half days in their first year. 

Germany launches pension fund for children

Starting in January 2026, the German government will introduce a new pension scheme to help children save for retirement. The government will open an Early Start Pension (Frühstart Rente) fund for every child aged between 6 and 17, and contribute 10 euros per month into each child’s fund until they turn 18.

When the child turns 18, the government will stop contributing to the account, but young people can continue to make payments of 10 euros per month if they wish to do so. Find out more about the scheme in our article: Children in Germany will get €10 per month paid into new pension fund.

Pensions will increase

Starting on July 1, 2026, statutory pension payments in Germany will rise by an estimated 3,7 percent. The coalition government will release more information about the rise in the coming months.

Changes affecting employment

In 2026, there will be changes in the working world in Germany, affecting immigrants, pensioners and minijobbers. Here’s what you need to know.

Minimum wage increase

In November, the German government announced the largest minimum wage increase in the country’s history. Wages will increase in two stages over 2026 and 2027.

In the first stage, on January 1, 2026, the national minimum wage will increase from 12,82 euros per hour to 13,90 euros per hour.

In the second stage, on January 1, 2027, the national minimum wage will increase again from 13,90 euros to 14,60 euros per hour.

Minijob taxable income thresholds increase

From January 1, 2026, employees with a Minijob contract in Germany will be able to earn a maximum of 603 euros per month before their income is subject to tax.

Work and Stay agency to launch

Over the course of 2026, the German government will launch a new “Work and Stay” agency website, which it hopes will attract non-EU skilled workers to fill job vacancies in Germany.

The platform will coordinate job offers for non-EU skilled workers looking to move to, or already living in, Germany. Skilled workers will receive guidance on applying for a visa, having their foreign qualifications recognised, renting a flat, and enrolling in a German language course or an integration course.

Higher minimum salary for Blue Cards

Starting in 2026, there will be higher salary requirements for obtaining an EU Blue Card. Employees will have to earn at least 50.700 euros per year before tax to qualify for the visa.

People working in professions where there is a worker shortage can earn slightly less and still qualify for a Blue Card, but still need to earn at least 45.934,20 euros per year before tax.

Germany to introduce “active retirement”

On January 1, 2026, the German government will introduce the “active retirement” or Aktivrente policy. With “active retirement”, people who work past retirement age won’t have to pay tax on the first 2.000 euros of their monthly income (or 24.000 euros of annual income).

Changes to the tax system in Germany

Alongside the usual tax changes, the German government will introduce a tax cut package in 2026. Here’s what you need to know.

Basic tax-free allowances will increase

The basic tax-free allowance (Grundfreibetrag) ensures that you only pay income tax on your annual income above a certain threshold. In 2026, the basic tax-free allowance threshold will rise from 12.096 euros per year to 12.348 euros per year.

Commuter allowance changes

Using the German commuter allowance, people who work in Germany can claim their work-related commutes as income-related expenses on their tax return to increase their chances of receiving a tax refund.

In 2026, the allowance will increase to 38 cents per kilometre and will apply from the first kilometre travelled. The allowance previously only applied after the 20th kilometre travelled.

VAT in cafés and restaurants cut to 7 percent

From 2026, the VAT rate for purchases in restaurants, cafes and other hospitality businesses will be permanently reduced from 19 percent to 7 percent. 

Germany initially introduced a 7 percent hospitality VAT rate between 2020 and January 2024, to minimise losses in the industry due to coronavirus restrictions.

More money for trainers and volunteers

With the new package, trainers and volunteers, such as sports club trainers, choir masters and volunteer care staff, will also enjoy higher tax-free allowances. Trainers will have a new tax-free allowance of 3.330 euros and volunteers of 960 euros.

ELSTER will auto-fill German tax declarations

In late October, the German tax office (Finanzamt) announced that it would update its tax declaration portal ELSTER. The update means that from mid-2026, the system will remember details that people have submitted in previous declarations and auto-fill these details in their latest declaration.

For example, if you submit your 2023 declaration online and give ELSTER permission to save your information, when you return to submit your 2024 declaration the platform will auto-fill the form with the basic information you added the last time.

You can find out more information about the ELSTER update in our article: 2026 ELSTER update will auto-fill German tax declarations.

Changes affecting consumers

Many things are getting more expensive in Germany, but some things will also get cheaper and easier in 2026.

Gas surcharge scrapped

From January 2026, Germany will scrap its gas storage surcharge (Gasspeicherumlage). The surcharge was initially introduced during the energy crisis in 2022 to help fill Germany’s gas storage facilities when the price of energy skyrocketed, and has pushed up prices for households and businesses.

Consumers can look forward to slightly lower utility bills in the coming year as a result.

SCHUFAs will be clearer and available online

Starting in 2026, Germany’s automatic credit scoring system, SCHUFA, will be simplified, more transparent and available online.

SCHUFA will reduce the number of scoring criteria from 250 to just 12. The new criteria will include: issue date of the applicant’s oldest credit card, number of charges made to current and credit accounts in past 12 months, the oldest bank contract and declined payments.

On the SCHUFA website, applicants will be able to fill out the 12 criteria and see a simplified version of their score for free. But if you’re hoping to complete the process online, you need to sign up for a SCHUFA account well in advance. For more information, read our article: SCHUFA score will be simplified and available online from 2026.

Flying to and from Germany may get cheaper

In May 2024, the SPD-FDP-Greens coalition increased the German aviation tax (Luftverkehrsabgabe) for passengers flying within Germany or to another EU member state from 12,73 euros to 15,53 euros. For trips further afield, more than 6.000 kilometres, the tax per passenger increased from 58,06 euros to 70,83 euros.

From July 1, 2026, the aviation tax will be reduced. When the tax was increased, airlines passed these costs on to passengers, but it is yet unclear whether passengers will benefit from cheaper tickets as a result of the tax cut.

You can find out more information about the aviation tax cut in our article: Flying to and from Germany may get cheaper from July 2026. 

Changes in transportation

Getting around in Germany is going to be slightly more expensive in 2026. Here’s what public transport users and drivers need to know.

Deutschlandticket will cost 63 euros

On January 1, 2026, the monthly cost of a Deutschlandticket subscription will rise from 58 euros to 63 euros.

The Deutschlandticket was first introduced in May 2023 and initially cost 49 euros per month, but the price was increased to 58 euros in January 2025. The ticket grants holders unlimited use of regional and public transport across the whole of Germany.

Public transport prices increase in several states

Alongside the Deutschlandticket price rise, tickets for single and multiple journeys and time-limited tickets will become more expensive across many federal states, namely Berlin, Brandenburg, North Rhine-Westphalia, Bremen, Lower Saxony and in cities such as Munich, Halle and Leipzig.

You can find out more information about the price rises in our article: Price of public transport to increase in 5 German states in 2026.

New Frankfurt Airport terminal to open

On April 22, 2026, a new terminal will open at Frankfurt Airport. The new terminal has been under construction since October 2015, and will have 21 security lanes with updated CT scanners and more food and retail areas. 

Once the terminal has opened in April, passengers will be transitioned in four phases from using Terminal Two to Terminal Three. Fraport expects to complete the transition process by June 2026.

Car insurance premiums to rise

Premiums for car insurance will get more expensive in Germany in 2026. According to the German Automobile Association (ADAC) and a risk assessment by the German Insurance Association (GDV), premiums could rise by up to 20 percent.

How much your premium rises depends on where in Germany your car is registered. These changes apply to both liability (Haftpflicht), comprehensive (Kasko) car insurance and partial damage insurance (Teilkasko-Schäden).

EU may introduce unified train booking system by 2026

In late 2024, EU Commissioner-designate Apostolos Tzitzikostas proposed that the bloc introduce a unified system for booking train tickets across the 27 member countries.

There are still many uncertainties about how the ticketing system will work, and rail operators have expressed concern about being forced to sell their tickets through third-party platforms, but a previous outline of the plan suggested that the unified system could launch in 2026.

Lyft to launch robot taxis in Germany

US tech and ridesharing company Lyft announced in August 2025 that it would begin operating automated taxis in Germany in 2026.

Lyft’s robot taxis will be given access to the market via the ridesharing app Freenow. Initially launched in Hamburg in 2009, Freenow was bought by the San Francisco-based Lyft in July 2025.

Guten Rutsch!

Now the admin is sorted, have a Guten Rutsch into 2026!