Skip to content

Germany: Large tax refund for millions of workers. They should expect money back in July

Work in Germany. Tax refunds in Germany for millions of employees. There are a few changes to income tax in Germany which are associated with the return of overpaid taxes on payroll in July 2022. How much money can you expect?

Tax refunds in Germany for millions of employees

The positive effects of the 2022 tax break act will be felt by millions of workers in Germany as early as July. Employers will refund the overpaid payroll tax to employees along with the July salary.

The tax-free basic amount has increased from the current € 9,984 to € 10,347.

Higher net salary in Germany: This is how much money employees will get back in July 2022

The exact reimbursement amount for each person depends on how much the employee earns. The Association of German Taxpayers (BdSt) has calculated that a family of four with both parents earning € 3,000 gross is now saving € 256 a year in income tax.

Thanks to the change, both of them will receive EUR 150 more in July, and from August they will receive EUR 21 more net per month.

READ ALSO: Minimum wages in Germany 2022: guide in English

As a result of the change, single people  with a gross income of € 2,500 per month are saving  € 124 per year . According to the BdSt, in July they will receive EUR 74 net more, and from August they should have another EUR 10 a month on their accounts.

With a gross income of € 4,000 per month, single  workers will receive € 80 more from their net salary in July and € 11 per month from August. The annual saving will therefore be € 136.

READ MORE: Germany: 300 euro bonus. Who qualifies for the relief payment?

Only these employees will receive their money back in July 2022

For now, only full-time employees will benefit from the tax relief in July  . Self-employed persons and retirees who pay payroll tax can only claim higher basic benefits on their 2022 tax return.