Germany tax reform 2027 may reduce net income for higher earners

A planned tax reform in 2027 may result in lower net income for many German workers. While those earning up to 6,000 euros gross are expected to see an increase, individuals earning approximately 6,000 euros or more may experience a decrease in net pay across all tax classes, provided they do not pay church tax.

The impact varies based on salary levels, social security contributions, and tax classes. For example, a household with one spouse earning 7,000 euros (tax class 3) and another earning 3,000 euros (tax class 5) might see a net decrease of 5.44 euros per month, even with higher child benefits.