The Sparerpauschbetrag (saver’s allowance) for 2026 is 1,000 euros per person and 2,000 euros for joint assessment. Interest, dividends and fund distributions up to this amount stay tax-free, provided your bank applies the allowance through an exemption order. This guide explains what counts and how to use the allowance.
Quick answer: The Sparerpauschbetrag is 1,000 euros per person and 2,000 euros for joint assessment (§ 20 para. 9 EStG, Income Tax Act, as of November 2026). Investment income above this amount is subject to the flat withholding tax. You use the allowance through exemption orders with your banks.
The most important points
- For single taxpayers the allowance is 1,000 euros per person.
- With joint assessment, for example for married couples, it is 2,000 euros.
- The allowance covers all investment income together, not each account or depot separately.
- The total of your exemption orders at several banks may not exceed the allowance.
- A doubling has been demanded politically. As of November 2026 no decision is documented.
How high is the saver’s allowance in 2026?
The amount is set directly in the Income Tax Act. Under § 20 para. 9 EStG it is 1,000 euros per person, or 2,000 euros with joint assessment. You can check the figures in the law itself.
| Assessment type | Allowance | Legal basis |
|---|---|---|
| Single (individual assessment) | 1,000 euros per person | § 20 para. 9 EStG |
| Joint assessment, e.g. married couples | 2,000 euros | § 20 para. 9 EStG |
What counts as investment income?
Investment income includes interest on current accounts, fixed deposits or bonds, dividends from shares and distributions from funds. Gains from selling securities also count. The allowance covers all of these together until the total reaches the limit.
How does the allowance work with your bank?
In practice the allowance works mainly through the exemption order. You give it to your bank or broker, and they withhold no withholding tax up to the amount of the order. The total of all exemption orders may not exceed the saver’s allowance. If you have several accounts, keep track of the split, because an excess remains taxable.
An exemption order is not a tax assessment. It only determines which income the bank pays out without deduction. Whether you must also declare income in your tax return depends on your situation and should be checked against your annual statements.
How do you calculate an example?
Assumption: you are single and receive 1,300 euros in interest and fund distributions in a year. Step one: compare the income with the allowance of 1,000 euros. Step two: the first 1,000 euros stay tax-free within the allowance. Step three: the remaining 300 euros are subject to the general rules of the flat withholding tax.
What about the planned doubling?
The CSU has demanded doubling the saver’s allowance. This is a political demand, not applicable law. Until a decision is made, the statutory amounts of 1,000 and 2,000 euros apply. Anyone following the debate can find the status in the legislative process.
Why the allowance matters for savings plans
Anyone starting a savings plan usually notices the allowance only when the returns become larger. In the first years, interest or distributions are often small. As the portfolio grows, the yearly total rises and the allowance becomes relevant. It is worth checking the annual total early. You can read more about savings plans in the guide to the ETF savings plan (in German).
Which documents do you need for your tax return?
For the tax return you need the annual statements of all banks and depots. Keep a copy of your exemption orders and their total. For losses from securities, the settlement notes are also important, because losses follow separate rules.
- Annual statements of all banks and brokers showing the income of the year.
- A copy of the exemption orders issued and their total.
- Settlement notes for sales and losses from securities.
- Evidence of investment income from abroad, if any.
Common mistakes with the allowance
- You issue exemption orders at several banks whose total exceeds the allowance.
- You think only about your main account and forget depots or savings accounts.
- You are married but use only the single amount of 1,000 euros, although joint assessment is possible.
- You do not check the annual statement and miss that the bank withheld too much tax.
How is the flat withholding tax applied above the allowance?
Investment income above the allowance is generally subject to the flat withholding tax, which the bank deducts directly. With it the tax on investment income is usually settled, and the income does not have to be taxed again at your personal rate. Exceptions exist, for example for church tax, which must be clarified separately.
Frequently asked questions
Does the saver’s allowance also apply to interest on a current account?
Yes. Interest on current and fixed-term deposits counts as investment income. The allowance applies to all income together, not to each account. Therefore add up the interest across all accounts over the year.
What happens if I exceed the allowance?
The part above the allowance is subject to the flat withholding tax. The bank usually deducts it, especially if it knows the exemption order. Clarify the exact process for your case with the tax office or a tax adviser.
Can I use exemption orders at several banks?
Yes. You can issue exemption orders at several institutions as long as their total does not exceed the saver’s allowance. Split the amount on purpose rather than giving the full amount to every bank.
Does the allowance apply to students with a part-time job?
The allowance depends on investment income, not on earnings from work. Even if you earn little as a student, the amount of the allowance does not change. What matters is only how much investment income you receive in the year.
What if I only have losses?
Losses from securities affect your tax differently from income and follow their own rules. The saver’s allowance is a tax-free threshold for positive income. Whether and how losses are considered should be checked individually.
What to do now
- Estimate which investment income you expect this year and compare it with the allowance that applies to you.
- Issue your exemption order at your bank or broker and watch the total.
- Keep the annual statements of your banks and compare them with your tax return.
- Check the Income Tax Act for changes that could alter the amount.
Related guides
- Money, account and credit: the overview for young adults
- Doubling the saver’s allowance: what the CSU demands (in German)
- Tax benefits during your studies: what you can deduct in 2026 (in German)
- ETF savings plan with 50 euros a month: calculation over 40 years
Sources: Income Tax Act (EStG), § 20 para. 9, gesetze-im-internet.de, as of November 2026 (German text).
Last updated: November 2026. This guide is general information, not individual advice.
