The basic allowance (Grundfreibetrag) is the amount up to which your taxable income stays tax-free in Germany. For 2026 it is 12,348 euros per year. Students who work should know that the gross wage is not the decisive figure. What counts is income after statutory deductions, and only then does it show whether income tax is due and how much.
Short answer: The basic allowance for 2026 is 12,348 euros per year under § 32a EStG. If your taxable income stays below this amount, no income tax is due. Above it, tax rises gradually, not in a jump. A higher amount for 2027 is in a draft law that has not yet been passed. Status October 2026.
The most important points in brief
- The basic allowance for 2026 is 12,348 euros per year under § 32a EStG.
- Work-related expenses are deducted from the gross wage. The flat-rate deduction of 1,230 euros under § 9a EStG applies automatically (status 2026).
- Above the basic allowance, tax rises with the tariff. A small excess therefore leads only to a small amount of tax.
- The mini-job limit for 2026 is 603 euros per month (§ 8 SGB IV, status 2026). It is a different limit from the basic allowance.
- For 2027 the government draft plans a basic allowance of 12,564 euros. The law has not yet been passed (status October 2026).
What is the basic allowance and how does it work?
The basic allowance is the amount the legislator treats as tax-free so that the subsistence minimum is not taxed. Income tax is calculated with the tariff in § 32a EStG. Up to the basic allowance the tax is zero. Above it, the tax rises at first only slowly. That is why income just above the allowance does not lead to a high tax burden.
The basic allowance applies to each person separately. For students it matters mainly because a part-time job often does not reach the threshold. The question is then whether the income for the year, after deductions, stays below the amount.
What counts: gross wage or taxable income?
The gross wage is only the starting point. For income tax, work-related expenses are deducted first. The employee flat-rate deduction for 2026 is 1,230 euros per year under § 9a EStG. You only claim your own expenses, such as travel to work or work equipment, if they exceed this flat rate. The result is the taxable income that is compared with the basic allowance.
Assumption: In 2026 you earn a gross wage of 15,000 euros over the year. After deducting the flat rate of 1,230 euros, 13,770 euros remain. This is 1,422 euros above the basic allowance of 12,348 euros. Special expenses and pension contributions are not included in this simplified calculation. They reduce the taxable income and can change the picture considerably.
This is how you check your own situation:
- Add up the annual gross pay from all jobs, not only from the last month.
- Deduct the flat-rate deduction of 1,230 euros, or your higher own work-related expenses if they are larger.
- Compare the result with the basic allowance of the year (2026: 12,348 euros).
- If the result is below, no income tax is due. If it is above, a closer look at the tax assessment is worthwhile.
When does the basic allowance rise?
The basic allowance is adjusted regularly. The table shows the figure for 2026 and the planned amounts for later years. The figures for 2027 and 2028 come from the government draft of the income tax reform 2027, which the cabinet approved on 2 September 2026. Until the law is passed, the current amount applies.
| Year | Basic allowance per year | Status | Source |
|---|---|---|---|
| 2026 | 12,348 euros | Current law | § 32a EStG (status 2026) |
| 2027 | 12,564 euros | Government draft, law not yet passed | Federal Government (status October 2026) |
| 2028 | 12,900 euros | Government draft, law not yet passed | Federal Government (status October 2026) |
Which other limits apply to student jobs?
Besides the basic allowance, student jobs are subject to other limits that are often confused. The mini-job limit concerns social insurance and is set at 603 euros per month for 2026 (§ 8 SGB IV). For 2027 the mini-job central office names 633 euros per month. For working students the limit on weekly hours matters most. The overview in our guide on working student or mini-job (in German) explains the details.
Child benefit and BAföG follow their own rules. A high side income can have consequences there that are unrelated to tax. Check the tax question and the funding question separately.
Frequently asked questions
Do I pay tax as soon as I earn more than 12,348 euros?
No. The decisive figure is not the gross wage but the taxable income after deductions. Above the basic allowance the tax also rises only gradually. If you slightly exceed the amount, you pay only a little tax.
What happens if I have two jobs at the same time?
The income from both jobs is added together for the year. With several employers an assessment may be needed so that wage tax is settled correctly. More on this is in our guide on tax returns for students.
Does the basic allowance change every year?
Yes, the amount is adjusted by law. For 2027 a government draft with 12,564 euros exists, which has not yet been passed. What counts is always the amount for the assessment year. You can find the current value in § 32a EStG.
Do I need a tax return if I stay below the basic allowance?
Usually not. For students a duty often arises only with several employers or with non-wage income above 410 euros that is not subject to wage tax. The details are explained in our guide on tax returns without income.
What to do now
- Collect all income of the year from part-time jobs, student assistant work and other sources.
- Set your work-related expenses against the flat-rate deduction and roughly determine the taxable income.
- Compare the result with the basic allowance of the relevant year.
- If you are unsure, run a calculation with the tax calculator of the Federal Ministry of Finance (bmf-steuerrechner.de).
Related articles
- Taxes for students: when you pay and when you do not
- Part-time jobs and taxes for students in Germany
- Minijob or student job: limits in figures compared
- Student job 20-hour rule, pension and semester breaks
- Taxes for students: when you pay and when you do not (in German)
Sources: § 32a EStG, basic allowance (status 2026), § 9a EStG, flat-rate deduction (status 2026), § 8 SGB IV, mini-job limit (status 2026), Federal Government, income tax reform 2027 (status October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
