New laws for 2025 have officially been passed!

The annual tax law has made it through the Federal Council. Who will receive how much more money in 2025?

Frankfurt am Main

December 16, 2024

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New tax year 2025: All the changes you should know!

The 2025 Annual Tax Act brings numerous changes that directly affect your wallet. From higher tax allowances to new regulations regarding severance payments, parental allowance, and inheritances – here are the key points:

• Health insurance bonus : Up to €150 tax-free! Anything above this amount must be declared on your tax return starting in 2025.

• Parental allowance changes : income limit drops to €175,000 (from April 1, 2025).

• Attention beer brewers : Up to 5 hectoliters of home-brewed beer remain tax-free (previously 2 hectoliters).

• Heirs benefit : The inheritance fee increases from €10,300 to €15,000.

• Taxing severance pay : The fifths rule only applies in the tax return, no longer via the pay slip.

• More net from gross : The tax-free basic allowance increases to €11,784 (retroactive for 2024).

Further changes:

• Property tax : Proof of a lower property value is possible – but only with expensive appraisals and a minimum deviation of 40%.

• Childcare costs : The deductible amount increases to €4,800 (previously €4,000).

• Small business regulation : The turnover limit increases to €25,000 (previously €22,000).

• Photovoltaics : Tax exemption up to 30 kilowatts peak – but be careful with the exemption limit!

Tax return and deadlines

• For 2024: Without a tax advisor until July 31, 2025, with a tax advisor until April 30, 2026.

• New postal delivery times: From 2025, tax office notices will only be valid after 4 days (instead of the previous 3).

What is missing?

Many planned regulations – such as the reduction of bracket creep or better depreciation rules for companies – will remain on hold until the new elections.

Do you want to know more?

Attorney Lederer reveals all the details in this video !