Germany Planning Personal Income Tax Measures in Response to Inflation

The German Ministry of Finance has issued a release announcing the presentation of an inflation compensation law on 10 August 2022, which mainly includes personal income tax measures. Key measures include:

• Increasing the basic tax-free allowance by EUR 285 to EUR 10,632 from 1 January 2023, with a further increase by EUR 300 to EUR 10,932 for 2024;
• Increasing the upper threshold for the 42% tax rate from EUR 58,597 to EUR 61,972 in 2023, with a further increase to EUR 63,515 in 2024; and
• Ma…