Basic tax allowance

In short: The basic allowance is the part of annual income on which no income tax is due. It protects the subsistence minimum and is 12,096 euros for 2025 and 12,348 euros for 2026 (for single persons).

In more detail: Only what exceeds the basic allowance is taxed. A pupil or apprentice who runs a small business on the side and stays below the allowance in total pays no income tax but must still file a return if the tax office asks or the business shows profits.

In detail

• Adjustment: the amount is raised regularly. Current values are on the Federal Ministry of Finance site.
• Aggregation: all incomes add up (training, mini-job, business, interest).
• Income-related expenses, special expenses: reduce taxable income further.
• No tax does not mean no return: if you make a profit you usually must file.
• Child benefit: for children in first vocational training there is no income limit (as current law stands), and for children in school until 18 there never was.

See also: Income tax for small businesses, Child benefit and the child’s income