The tax-free allowance for 2026 is a common search for students with a part-time job, but the German law uses different terms. What is meant is the basic allowance (Grundfreibetrag), up to which no income tax is due. This guide explains how the basic allowance, the employee flat rate and the mini-job limit work together, calculates an example with clear assumptions and explains why wage tax can still be deducted.
Short answer: The basic allowance for 2026 is 12,348 euros a year. For employees, the employee flat rate of 1,230 euros is deducted first. Assuming that only wage income applies and no further deductions are made, no income tax is due up to about 13,578 euros of gross wages a year (as of October 2026).
The most important points at a glance
- The basic allowance for 2026 is 12,348 euros a year (section 32a EStG).
- The employee flat rate for 2026 is 1,230 euros and reduces the taxable income (section 9a EStG).
- The mini-job limit for 2026 is 603 euros a month or 7,236 euros a year (section 8 SGB IV).
- Wage tax can be deducted despite low earnings, because the deduction is not always the final tax. The tax return corrects overpayments.
- Without a tax adviser, the tax return for 2026 is due by 2 August 2027.
What does the basic allowance mean?
The basic allowance is the part of your taxable income that stays tax-free. Income tax only rises above this threshold. For the 2026 tax year it is 12,348 euros, according to section 32a EStG in the version for 2026. Note that the basic allowance refers to taxable income, not to gross pay. Deductions in between reduce your income.
| Figure | Amount 2026 | Source |
|---|---|---|
| Basic allowance (taxable income) | 12,348 euros a year | Section 32a EStG |
| Employee flat rate | 1,230 euros a year | Section 9a EStG |
| Mini-job limit | 603 euros a month, 7,236 euros a year | Section 8 SGB IV |
| Minimum wage | 13.90 euros gross per hour | Fifth Minimum Wage Ordinance |
The employee flat rate: the first deduction
If you receive wages, you can deduct the employee flat rate of 1,230 euros a year without proof. It reduces the gross wage to the income on which the tax is calculated. The threshold up to which no income tax is due is therefore a gross wage of about 13,578 euros a year, provided no further deductions apply.
Assumption: in 2026 you have only wage income, no other income and no additional deductions. Then 13,578 euros of gross wages minus the 1,230 euro flat rate gives 12,348 euros, which is exactly the basic allowance. Above that, income tax is due. You can estimate the amount with the tax calculator of the Federal Ministry of Finance at bmf-steuerrechner.de, because the result depends on your tax class and deductions.
The mini-job limit and what it means for students
The mini-job limit defines when a marginal employment exists. For 2026 it is 603 euros a month, or 7,236 euros a year. It is derived from the minimum wage, which is 13.90 euros gross per hour in 2026. A mini-job thus remains marginal for social insurance. This does not automatically mean that no wage tax is due, because tax is calculated under other rules. The mini-job limit and the basic allowance are two different yardsticks.
| Gross wage per year (assumption) | Income tax under the basic allowance | Classification |
|---|---|---|
| 7,236 euros (mini-job limit for a year) | Below the basic allowance | No income tax if there is no other income |
| 13,578 euros | Exactly at the limit | Taxable income equals 12,348 euros |
| More than 13,578 euros | Above the limit | Income tax is due, amount via the BMF calculator |
The calculator of the Federal Ministry of Finance takes gross earnings, tax class and further details and shows the estimate. Check the year you enter, because the basic allowance and the flat rates are set each year. A draft for 2027 with higher figures exists, but it has not been adopted, so use the figures of 2026 for your 2026 return.
Why is wage tax deducted despite low earnings?
Your employer deducts wage tax according to the characteristics stored for you. This calculation is an advance payment and does not always match your final tax at the end of the year. If the deduction was higher than the tax you owe, you get the difference back through the assessment. This is set out in section 46 EStG, which covers the assessment for income from employment.
For students this means that even with low earnings a tax return can be worthwhile. Especially if you worked only part of the year or have work-related costs such as travel to the workplace, a refund may result. The German guide Steuererklärung für Studenten: So holst du dir Geld zurück explains how to set up the return (in German).
Step by step: checking your limit
The following steps help you estimate whether you will probably pay income tax in a given year. The calculation is an orientation and does not replace a calculation under the law.
- Add all gross earnings from work in the calendar year, for example mini-job, student job and training allowance.
- Deduct the employee flat rate of 1,230 euros, if you have wage income.
- Deduct further items such as special expenses or insurance contributions, where they apply.
- Compare the result with the basic allowance of 12,348 euros.
- If the result is below it, no income tax is due, unless there is other income.
Frequently asked questions
Is there a special tax allowance for students?
The Income Tax Act has no allowance that applies only to students. The basic allowance and the employee flat rate apply to all taxpayers. Your limit therefore depends on your income and deductions, not on your status as a student.
Must I file a tax return if I stay below the basic allowance?
Not necessarily. Usually there is no obligation below the threshold, but a return can be worthwhile if wage tax was deducted. Base the decision on your figures. The BMF calculator helps with a first estimate.
How much time do I have for the tax return?
For the 2026 tax year, the deadline without a tax adviser is 2 August 2027. The regular date of 31 July 2027 is a Saturday, so the deadline moves to the next working day. If you engage a tax adviser, the deadline is longer.
What changes if I have more than one job?
Several employments are combined for income tax. The mini-job limit applies to each marginal employment separately for insurance purposes, but for income tax the total of your income counts. Check both yardsticks if you have several jobs.
What you can do now
- Note the gross income you received in the calendar year.
- Check with the basic allowance and the employee flat rate whether income tax is likely.
- Check on your payslip how much wage tax was deducted.
- File a tax return if you expect a refund, and keep the deadline of 2 August 2027.
- Ask the tax office or an advice centre if anything is unclear.
Related guides
- Taxes for Students: When You Pay and When You Do Not
- Part-Time Jobs and Taxes for Students in Germany
- Tax Return for Students: How to Get Your Money Back
- Studienkosten absetzen: Erststudium und Zweitstudium (in German)
Sources: Section 32a EStG, income tax tariff (gesetze-im-internet.de, version for 2026); Section 9a EStG, flat rates (gesetze-im-internet.de); Section 8 SGB IV, marginal employment (gesetze-im-internet.de, 2026 figures); Section 46 EStG, assessment (gesetze-im-internet.de); Section 149 AO, filing of tax returns (gesetze-im-internet.de).
Last updated: October 2026. This guide is general information, not individual advice.
