The minimum wage and the CO₂ price are rising. The Germany-wide public transport ticket is becoming more expensive, as are fuel and heating with oil and gas. A wide range of changes will come into force in 2026. Many of them take effect automatically, through taxes, social security contributions or higher tax allowances. Others will be felt more directly when refuelling your car, heating your home or commuting to work.
Whether you are an employee, a family with children, a pensioner or a motorist, almost every household will see changes in income or expenses. Below, The African Courier explains what is new in 2026, who stands to benefit, and where costs are set to rise.
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Minimum wage increases
Germany’s statutory minimum wage rises to €13.90 gross per hour, up from €12.82, on 1 January. The increase follows a recommendation by the Minimum Wage Commission and was implemented by regulation of the Ministry of Labour. A further increase to €14.60 per hour is already planned for early 2027.
At the same time, the earnings limit for “mini-jobs” increases from €556 to €603 per month.
Higher basic tax allowance
From January 2026, the basic tax-free allowance rises from €12,096 to €12,348 per year. This means income tax is only charged on income above this threshold.
Higher allowances for voluntary work
People engaged in voluntary work for non-profit organisations will now benefit from a higher volunteer allowance (Ehrenamtspauschale), which rises from €840 to €960 per year, tax-free. The trainer/instructor allowance (for example for sports coaches, church musicians or youth leaders – Übungsleiter) also increases, from €3,000 to €3,300 per year. Both allowances can be combined under certain conditions.
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“Active pension” comes into force
From 2026, the new “active pension” (Aktivrente) scheme applies. This is a tax incentive for working beyond retirement age.
People who have reached the statutory retirement age can now earn up to €2,000 per month tax-free from employment – that is €24,000 per year. In addition, they still benefit from the general tax-free allowance, bringing the total monthly tax-free income to €3,029 in 2026.
The aim is to encourage older people to stay in the labour market longer. The bonus applies whether or not the person already receives a pension. Those who postpone drawing their pension still receive the 0.5% monthly pension increase, which can be combined with the active pension scheme.
At the same time, the rule allowing employers to limit contracts without justification after retirement age has been abolished.
Who can retire in 2026?
People born between 2 October 1959 and 1 August 1960 can retire regularly in 2026.
- Those born in 1959 must be 66 years and 2 months old.
- Those born in 1960 must be 66 years and 4 months old.
Because pensions are paid from the month after eligibility, birth dates determine whether payments start in late 2026 or only in January 2027.
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Electronic patient record gains new features
From mid-2026, the electronic patient record (ePA) will be expanded. Doctors will be able to include non-prescription medicines in medication lists and create a digital medication plan giving patients a clear overview of their treatments.
Legal right to full-day primary school care
A legal right to all-day care in primary schools will be introduced from August 2026, initially for first-grade pupils. The entitlement will be extended year by year. By August 2029, children in grades 1 to 4 will all have a right to full-day care.
Higher child tax allowance and child benefit
The child tax allowance increases in 2026 to €3,414 per parent (up from €3,336). The allowance for childcare, education and training remains unchanged at €2,928.
At the same time, child benefit rises by €4 to €259 per month per child. The additional support for low-income families remains unchanged at €25 per child per month.
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CO₂ price rises
From 1 January 2026, the CO₂ price increases from €55 to up to €65 per tonne. This affects:
- Heating costs for gas and oil
- Fuel prices for petrol and diesel (about 3 cents more per litre, according to ADAC)
For a poorly insulated single-family home:
- Heating oil (2,000 litres): €349–€412 extra per year
- Natural gas (20,000 kWh): €263–€311 extra per year
Germany-Ticket becomes more expensive
Germany-wide public transport ticket Deutschlandticket rises from €58 to €63 per month. It remains valid nationwide and continues to allow passengers to use all local public transport services across Germany – including buses, underground and suburban trains, trams, as well as regional trains such as RE and RB services.
Existing subscribers must actively agree to the price increase.
Old driving licences expire
Anyone whose driving licence was issued between 1999 and 2001 must apply for the new EU card-format licence by 19 January 2026. All old EU licences are to be replaced by January 2033.
Commuter tax allowance increases
From 1 January 2026, the commuter allowance will be increased to 38 cents per kilometre from the very first kilometre. Previously, the rate was tiered: 30 cents per kilometre up to the 20th kilometre, and only from the 21st kilometre did the 38-cent rate apply. All employees can claim the distance to and from work, regardless of whether they commute by car, bicycle or public transport.
Depending on commuting distance, this can significantly reduce taxable income, especially for those already exceeding the employee lump-sum allowance.
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Cryptocurrency trading becomes more transparent
From 2026, Germany implements the Crypto-Asset Tax Transparency Act, in line with an EU directive. Crypto exchanges, brokers and wallet providers must:
- Verify users’ identities
- Report transactions, holdings and gains annually to the tax authorities
This data will be automatically exchanged between EU countries.
EU-wide standard charging cable for laptops introduced
From 2026, the USB-C port will also become the standard for new laptops, after already being made mandatory for smartphones, tablets and many other small electronic devices. An EU directive aims to put an end to cable clutter and reduce electronic waste.
Right to repair
By July 2026, Germany must implement the EU “right to repair” directive. Manufacturers of products such as washing machines, refrigerators and smartphones will be required to offer repairs at reasonable prices even after warranty expiry. Repairs during the warranty period extend liability by one year.
© AfricanCourierMedia
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Germany: New Laws and Regulations from December 2025
THE AFRICAN COURIER. Reporting Africa and its Diaspora! The African Courier is an international magazine published in Germany to report on Africa and the Diaspora African experience. The first issue of the bimonthly magazine appeared on the newsstands on 15 February 1998. The African Courier is a communication forum for European-African political, economic and cultural exchanges, and a voice for Africa in Europe.