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Germany: Proposed social reforms and tax adjustments for 2026-2028
Germany is preparing for several significant shifts in social welfare and taxation. A planned income tax reform for 2027 aims for a net relief of 5.6 billion euros, featuring adjusted tax brackets and a new wealth tax for high earners exceeding 250,000 euros.
In the social sector, the transition from Bürgergeld to Grundsicherungsgeld in July 2026 introduces stricter rules for housing costs, potentially increasing risks for landlords. Meanwhile, care allowances (Pflegegeld) for those with at least care level 2 are subject to ongoing adjustments following the 2023 reform, with discussions regarding benefit levels for 2026.
Proposed reforms to parental allowance (Elterngeld) have drawn criticism from officials like Aminata Touré, who warns of financial gaps for families due to reduced benefit durations and insufficient inflation adjustments. Additionally, the Federal Court of Justice (BGH) has clarified that parents providing extensive childcare may be entitled to reductions in child support payments.
Entities
Aminata Touré · Bundesrat · Bundestag · Federal Court of Justice · Federal Ministry for Family Affairs · Federal Ministry of Family Affairs · Fortunalista · German Federal Government · German Federal Ministry for Family Affairs · Germany · Karin Prien