The German Ministry of Finance has published the Draft Income Tax Reform Act 2027 (Einkommensteuerreformgesetz 2027), which was approved by the Federal Cabinet on 2 September 2026. The main measures are summarized as follows:
- The current 45% tax rate bracket threshold will be reduced to EUR 250,000, and a new top tax rate of 47% will be introduced on income exceeding EUR 280.000
- The standard employee lump-sum deduction for income from non-self-employed work will be increased from EUR 1,230 …