The business community is hoping for a turnaround in the economic trend by 2026 – for signs of a new beginning for companies and employees. The German government has initiated initial measures, such as reducing bureaucracy. (Photo: © ailikecreative/123RF.com)
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December 2025
Taxes, reducing bureaucracy, digitalization: 2026 will bring numerous changes for businesses, the self-employed, employees, pensioners, and volunteers. A comprehensive overview from A to Z.
Becoming leaner and faster – a resolution many people make for the new year – is also intended to revitalize the government. The coalition has announced large-scale bureaucracy reduction. The economy is to be relieved of bureaucratic burdens by 25 percent, or 16 billion euros. Businesses and the self-employed are skeptical and hope that these measures will be more than just good intentions and announcements.
For employees, pensioners, and drivers, several things will change in the new year. Many changes have already been decided, while other legislative proposals still need to be passed by the Bundestag and Bundesrat.
Here you can go directly to the topics that interest you:
agricultural diesel - Active pension - Age-appropriate and barrier-free renovation - Old-age pension for severely disabled people - Opticians: more money for trainees in the southwest - Banks / Lending - Accessibility Act - Building products - Disability allowance - Contribution assessment limits - Company pension - Company event - certification - Citizen's Income - Co2 tax - roofer - Deutschlandticket - Germany ticket for trainees - Digital Craftsman's Map - volunteering and associations - E-license plate and environmental badge - Energy Tax and Electricity Tax Act - Electric Cars - Pay Transparency Act - Deforestation Ordinance - Driver's license - Driver's license check - Building Energy Act (Heating Act) - Building Type E Act - Used cars - Geothermal energy - Scaffolder - Health crafts - Union dues - Founder loan - basic allowance - Heating label - industrial electricity price - Child allowance - Child benefit - Road tax - Health insurance - Artists' social security contribution - Short-time work allowance - Truck toll - Minijob and midijob - Minimum training allowance - Minimum wage - sustainability reporting - New construction funding - Emergency call system in the car - Party donations - commuter allowance - Photovoltaic obligation - Prevention regulations - product liability - Pension - Repair - Benefit-in-kind values for food and accommodation - chimney sweeper - schwarzarbeit - safety officer - tax assessment - top tax rate - Value Added Tax in the Catering Industry - Business start-up in 24 hours - Award - Future Crafts
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Farmers can rejoice. Refunds for agricultural diesel will be fully reinstated starting with the 2026 consumption year.
Retirees will be allowed to earn up to €2.000 per month (or €24.000 per year) tax-free if they voluntarily continue working beyond the standard retirement age. The planned "active pension" is therefore not technically a pension, but rather a tax bonus. The skilled trades sector is skeptical, primarily because the self-employed are excluded from the scheme. It is scheduled to begin on January 1, 2026. The exact details are still being finalized. The active pension is also part of the controversial pension reform package. Read more > here!
Subsidies for age- and barrier-free renovations will be available again in 2026. The federal government plans to allocate 50 million euros in the budget for the popular KfW program. You'll find more about it here!
For all severely disabled people born on or after January 1, 1964, a full retirement pension without deductions is only possible at age 65. Early retirement from age 62 remains possible, but with a 10,8 percent reduction. The previous transitional arrangements and grandfathering provisions for earlier birth years are being abolished without replacement, reports the Verdi trade union.
Opticians in Baden-Württemberg, Rhineland-Palatinate, Saarland, and Hesse should pay their apprentices higher training allowances starting in August 2026. This recommendation was adopted by the delegates' assembly of the Southwest German Association of Opticians and Optometrists (SWAV) reached an agreement "after intensive consultation" on how high the trainee remuneration should be. You can read it here.
A planned new law aims to strengthen Germany's financial center and promote investment. It includes measures to facilitate lending, particularly to small and medium-sized enterprises (SMEs). A concrete implementation plan was not yet available at the time of publication.
Since June 29, 2025, people with disabilities must be able to use e-commerce websites without difficulty. However, micro-enterprises with fewer than ten employees or an annual turnover of no more than 2 million euros are exempt from this requirement. Read more > here!
The EU Construction Products Regulation sets out the requirements for construction products regarding safety, energy efficiency, and sustainability. A new version will come into force in all member states on January 8, 2026, introducing, among other things, a digital product passport and further environmental requirements. It regulates CE marking for construction products and ensures that these can be sold in the European single market. The amended German Construction Products Act, which implements the EU regulation, was passed by the Bundestag on November 13, 2025. Read more here!
The disability allowance – a tax benefit for people with disabilities – can only be applied for and proven digitally from 2026 onwards.
From January 1, 2026, the contribution assessment ceilings in the statutory health and pension insurance will increase:
The Contribution assessment ceiling for statutory health insurance It should be based on an annual gross income of 69.750 euros (or 5.812,50 euros per month).
The Compulsory insurance limit In the statutory health insurance system, the amount increases to 77.400 euros (6.450 euros per month).
The Contribution assessment ceiling in general pension insurance It should then be around 8.450 euros per month.
The miners' pension insurance The income limit is to be increased to 10.400 euros per month.
More employees – especially in small businesses or with low incomes – should benefit from supplementary company pension schemes. The draft law for the second Company Pension Strengthening Act It was approved by the Cabinet on September 3, 2025. The parliamentary process is expected to follow promptly, so that most of the regulations can come into force in 2026. Among other things, the measures include higher subsidies for employers and adjusted income thresholds from 2027 onwards, as well as tax relief for severance payments.
The flat-rate allowance for paid wages in connection with company events is only available if the event is open to all employees of the company. The Federal Council still needs to approve the law.
Notaries, consulates, and probate courts will soon be able to issue documents electronically in person. A concrete implementation plan was not yet available at the time of publication.
In the future, the citizen's income will "Basic income support for job seekers" The requirements will become significantly stricter. Furthermore, there will be a second consecutive year without an increase. After increases in 2023 and 2024, the standard rates will remain unchanged in 2026.
Heating with oil and gas will become more expensive in 2026, as the CO₂ price for these fossil fuels will be within a range of €55 to a maximum of €65. Currently, it is €55 per ton. The building society Schwäbisch Hall He calculated that the additional costs for gas heating systems will amount to approximately 1,4 cents/kWh. For an annual consumption of 6.000 kilowatt hours, this results in additional costs of around 84 euros; for 20.000 kilowatt hours, it would be 281 euros. Owners of oil heating systems must therefore expect additional costs of around 20,7 cents per liter due to the CO₂ tax. For a consumption of 600 liters, this would result in additional costs of around 124 euros.
The Minimum wage for roofers (helpers and journeymen) The minimum wage will increase on January 1st. Unskilled workers will then receive at least €14,96 (instead of the current €14,35). For skilled workers, the minimum wage will increase in three stages: to €16,60 from 2026, to €17,10 from 2027, and to €17,60 from 2028. Read more about it > here!
The price of the Germany Ticket is increasing from 58 euros to 63 euros per month. The new price was jointly decided by the federal and state transport ministers.
Lower Saxony will start with the on January 1, 2026 "D-Ticket Azubi NI" Introduce a nationwide ticket for volunteers and trainees. There will be two versions. Read here what they are!
In Berlin A Germany-wide ticket for trainees is expected to be available from March 2026. According to the Berlin Chamber of Skilled Crafts, this is a successor to the VBB trainee subscription.
Even Apprentices in the electrical trade in North Rhine-Westphalia Trainees can rejoice: Their training companies are expected to take over the Germany Ticket from the first quarter of 2026. This is according to the new [relevant authority/organization]. Collective agreement before, which FEH.NRW and the IG Metall union agreed on October 2, 2025. Read more about this in this article.
The German Federal Government wants to introduce a digital craftsman's card to prove registration in the craftsman's register.
The Trainer and volunteer allowance The allowance is to be increased to €3.300 or €960, respectively. Income from the commercial operations of sports clubs will remain tax-free up to €50.000 (previously €45.000). Clubs with income up to €100.000 will also no longer be required to use funds promptly. A positive development for sustainability: Operating photovoltaic systems would no longer automatically jeopardize a club's non-profit status. The Federal Council still needs to approve the measure on December 19.
Vehicles with electric vehicle license plates will no longer require an environmental sticker. The environmental standards regarding air quality will remain unchanged.
The law simplifies electricity tax law – particularly at charging points – by clarifying regulations regarding tax liability, entitlement, and exemptions, as well as bidirectional charging. Furthermore, various bureaucratic obligations, such as permit applications, documentation and submission requirements, and supplier obligations for smaller installations, are eliminated. A concrete implementation plan was not yet available at the time of publication.
The coalition has agreed on a new purchase premium for both electric cars and plug-in hybrids. The new subsidy of at least €3.000 is specifically aimed at "low- and middle-income households," according to the committee's resolution. Therefore, income limits will apply. The subsidy will also apply to the purchase or leasing of used electric cars.
In addition, the expansion of charging infrastructure and electricity price reduction Part of the discussed package of measures: The tax exemption for purely electric vehicles will be extended by five years. Vehicles first registered by December 31, 2030, will remain tax-exempt for a maximum of ten years – but no later than December 31, 2035. The Federal Council's opinion on the draft law is still pending. Without this law, only vehicles registered before January 1, 2026, would remain exempt.
Since July 2025 there has been a New depreciation method for electric and fuel cell company cars One: In the first year, companies can deduct 75 percent of the purchase price for tax purposes. In subsequent years, the deductions are 10 percent, then 5 percent, another 5 percent, 3 percent, and 2 percent. The depreciation period is six years. Important: This regulation only applies to vehicles purchased between July 1, 2025, and January 1, 2028.
Salary information must now be provided during the application process, annual reports on pay criteria will become mandatory, and the burden of proof in cases of wage discrimination will lie with the employer. New reporting obligations apply to employers with 50 or more employees. Every employee can request information about salaries – regardless of company size. The EU directive entered into force on June 6, 2023, and must be transposed into national law by member states by June 7, 2026, which will have an impact on the German Pay Transparency Act.
The EU deforestation regulation will enter into force later. After the Council of the EU reached a compromise on the deforestation regulation, the European Parliament has now also adopted the European Commission's revised proposal. The Commission had previously revised the regulation and proposed that the The application launch for micro and small businesses is to be postponed by another year to December 30, 2026.The Council has also called on the Commission to examine further possible simplifications by April 2026. Documentation and verification requirements should be further simplified compared to the current Commission proposal. Read the details here!
For 2026, it is planned to integrate further vehicle- and owner-related documents, such as the driver's license, into the i-car app to integrate. This app already allows users to digitally store their vehicle registration certificate on their mobile phone. Next year, it will also be available to legal entities such as fleet operators. Read more > here!
Employers who provide employees with a vehicle must check their driver's license at regular intervals. Currently, it is unclear how often and at what intervals these checks must be carried out. The Federal Council wants to establish legal certainty and stipulate that a single check is sufficient. Read more here!
The Building Energy Act (GEG), also known as the Heating Act, is one of the most controversial pieces of legislation passed by the coalition government. The center-right/center-left coalition is divided on how to proceed with the law. "There will be an amendment, but in principle it will remain the same," Federal Environment Minister Carsten Schneider (SPD) recently stated on ARD television. Heating subsidies for private individuals and businesses will therefore continue to be available through the KfW (German Development Bank).
The GEG (Building Energy Act) also stipulates that municipalities with more than 100.000 inhabitants must submit a municipal heat plan by mid-2026. Smaller municipalities have until mid-2028 to do so.
The aim is to make construction simpler, cheaper, and faster. Construction contract law is to be amended to allow for easier deviations from non-mandatory technical standards, as well as comfort and equipment standards. The coalition government presented the draft legislation in November 2024; following the snap elections, the current government has announced its intention to expedite the legislative process. Read more about it > here!
From 2026 onwards, a valid vehicle registration document will be required for all used cars that are to be sold. TÜV certificate or an expert opinion be able to present an independent vehicle expert's report.
The Geothermal Energy Acceleration Act aims to speed up the expansion of geothermal plants, heat pumps, heat pipelines and storage facilities, as well as the exploration of geothermal energy. A concrete implementation plan was not yet available at the time of publication.
Wages in the scaffolding trade will increase by 11,9 percent. They will be raised by 7,5 percent on November 1, 2025, and by a further 4,4 percent on October 1, 2026. According to the IG BAU union, this means that the hourly wage for a skilled worker, for example, will increase from €17,91 to €19,25 in the first step and then to €20,10 in the second step.
The industry minimum wage will be increased by €0,40 to €14,35 per hour from January 1, 2026, with a further increase of €0,55 at the beginning of 2027.
In addition, there is a brand new summer compensation payment. Employees will receive 75 percent of their hourly wage as compensation. Read more here!
Healthcare trades will be connected to the medical-digital infrastructure (telematics infrastructure) as providers of assistive devices. To do this, they will need an electronic professional ID card (eBA) and an institution card (SMC-B) by January 1, 2026, at the latest. Both are applied for through the Chamber of Skilled Crafts. Read details > here!
Membership fees paid to trade unions as contributions to professional bodies and other professional associations whose purpose is not directed towards a commercial business operation are taken into account as business expenses in addition to the employee lump sum, the lump sum for pension benefits and the lump sum for other income.
KfW has the ERP Start-up Loan - StartGeld The loan amount has been increased from €125.000 to €200.000. This allows startups to finance investments and working capital. KfW also assumes 80 percent of the default risk for the borrower's bank. Read more about this in this article.
The basic tax allowance is set to increase to €12.348 in 2026. For married couples, the allowance is double that amount, i.e., €24.696 per year.
Since 2017, district chimney sweeps have had to "National Heating Label" The stickers are to be affixed to older heating systems. An evaluation of the "National Action Plan for Energy Efficiency" revealed that the stickers did not significantly contribute to boiler replacements. This is one of the reasons why the label is to be discontinued. The Bundestag and Bundesrat still need to approve this.
Industrial companies with particularly high energy demands are to be relieved of some of the burden through a state-subsidized industrial electricity price. The target price is around five cents per kilowatt-hour. Small and medium-sized enterprises (SMEs) are excluded. The German Confederation of Skilled Crafts (ZDH) therefore demands that all businesses and their customers be relieved of some of the burden through a reduction in electricity taxes. Read more about it > here!
The tax-free child allowance is set to increase to 3.414 euros in 2026, and to 6.828 euros for married employees.
From January 2026, child benefit will increase uniformly by four euros to 259 euros per month for each child. The family benefits office will automatically adjust the amounts and pay them out at the new rate from January.
From 2026 onwards, vehicle tax can only be paid once a year. There will no longer be a tiered payment system.
The Bundestag passed an austerity package for statutory health insurance. Plans included savings of €1,8 billion at hospitals, as well as €100 million each at the statutory health insurance innovation fund and in the administrative costs of health insurance funds. The Bundesrat sent the bill to the mediation committee in November. The date of the mediation committee meeting is still unknown. Therefore, it remains unclear whether premiums will rise in the new year.
The contribution rate for artists' social security will be 4,9 percent. It is therefore decreasing slightly; in 2025 it will be 5,0 percent. Read the details here!
The special regulation for short-time work compensation is to be extended until the end of 2026. This will allow companies to receive short-time work compensation for up to 24 months.
Since the end of 2023, zero-emission electric trucks have been exempt from tolls. Now it is confirmed that the Toll exemption extended will be: Until Mid 2031The exemption was originally only supposed to apply until December 31, 2025.
Furthermore, the truck toll system can also be accessed via the [website/platform name] from mid-January. “Toll Now App” from Toll Collect Use it. Initially, the app only runs on iOS devices. The target group is "casual users". Read more here!
The monthly earnings limit for mini-jobs will increase from the current €556 to €603 from 2026 due to its linkage to the minimum wage. From 2027, the mini-job limit will then be €633. The midi-job, in the so-called transitional range, will have a monthly earnings limit of €603,01 from January 1st and will reach a maximum of €2.000.
The minimum wage for first-year apprentices will increase by almost 6,2 percent to €724 gross in 2026, according to the Federal Institute for Vocational Education and Training (BIBB). It will rise to €854 in the second year (up from €805), €977 in the third year (up from €921), and €1.014 in the fourth year (up from €955). However, the BIBB emphasizes that the vast majority of apprentices receive significantly more. Furthermore, most sectors offering apprenticeships have collective bargaining agreements that stipulate wages above the statutory minimum. Read more here!
From January 1, 2026, the statutory minimum wage will be €13,90 per hour. On January 1, 2027, it will increase again to €14,60. Overall, the statutory minimum wage will thus rise by almost 14 percent. Read more about it > here!
The obligation to report on sustainability under the EU Directive (CSRD) is being postponed for most companies. And it will only affect very large companies and capital market-oriented SMEs. For small and medium-sized enterprises (SMEs), there will be the voluntary EU standard VSME, which comprises fewer than 80 questions. Many of these can only be answered with yes or no. For craft businesses, there will be a free tool – the "Future Compass for Crafts" from the Central Office for Continuing Education in Crafts. It can already be tested in a beta version.zukunfts-kompass-handwerk.deThis is a project of the Federal Ministry for Economic Affairs and Energy within the framework of the German Sustainability Code (DNK). Read more here!
The Efficiency House 55 Plus subsidy program starts on December 16, 2025. Construction projects for which a building permit already exists will receive up to €100.000. KfW loans with reduced interest rates subsidized per residential unit, reports the Federal Ministry of ConstructionThe funding ends when the funds are exhausted. 800 million euros are available. Read the details here!
A new emergency call system for cars will become mandatory in the EU: the so-called "Next Generation eCall"It replaces the previous technology, which is outdated.
The maximum amount of the donation deduction for contributions to political parties will be increased from 1.650 to 3.300 euros (6.600 euros for jointly assessed couples).
The commuter allowance will in future be 38 cents per kilometer, starting from the very first kilometer. Previously, this rate only applied from the 21st kilometer onwards. With the removal of the time limit... Mobility bonus Taxpayers with lower incomes will continue to receive the mobility bonus even after 2026. The Bundestag has passed the law; the Bundesrat still needs to approve it.
From January 1, 2026, a photovoltaic (PV) system will be mandatory in North Rhine-Westphalia for all roof renovations – for residential, commercial, and industrial buildings. A PV system must be installed during a complete roof renovation, covering at least 30 percent of the usable roof area. Alternatively, a solar thermal system can be installed. Exceptions are possible.
In 2026, the regulations on prevention in statutory accident insurance are to be modernized and the existing procedures are to be further digitized and simplified.
The revised Product Liability Act is scheduled to come into force on December 9, 2026. It will implement a necessary adjustment of strict liability to new technologies, while duly considering the legitimate interests of craft businesses. Read more here!
Pensions in Germany are set to increase by 3,7 percent from July 2026.
The EU Repair Directive establishes an independent right to repair outside of warranty and obliges manufacturers to provide spare parts. It must be transposed into German law by July 31, 2026. Read more here!
The meal allowance for 2026 is expected to increase to €345 per month for full board, which corresponds to €11,51 per day. The value in kind for free accommodation is expected to be €285 per month in 2026. This amounts to €9,50 per calendar day.
The German government wants to abolish the obligation to verify professional qualifications before the start of cross-border service provision in the chimney sweeping trade.
Hairdressers and beauticians are to be included in the list of those subject to the Act to Combat Undeclared Work. Among other things, this would mean that teams would be required to carry and present identification documents. The German government plans to pass the draft legislation by December 19, 2025. The butcher's trade is to be temporarily excluded from the scope of Section 2a, Paragraph 1 of the Act to Combat Undeclared Work. Furthermore, digital, streamlined audits by the Financial Control Unit for Undeclared Work will be introduced to reduce the burden on businesses and promote fair competition. Read the details here!
According to plans by Federal Labor Minister Bärbel Bas, companies with fewer than 50 employees will no longer need a safety officer – and SMEs with 50 to 250 employees will only need one – in each case depending on the operational risk level. Around 123.000 safety officers nationwide are to be eliminated as a result. Furthermore, the compressed air officer position is to be abolished following the repeal of the Compressed Air Ordinance. The aim is to reduce bureaucracy. Read more about this here
From 2026, new regulations will come into effect for the notification of administrative acts via electronic data retrieval. According to the legislator's intent, electronic notices will become the norm – paper notices the exception. The revised version of Section 122a of the German Fiscal Code (AO) allows tax authorities to notify administrative acts by making them available for electronic data retrieval. Tax assessments issued by tax authorities based on electronically submitted tax returns should generally be made available electronically. Unlike the previous legal situation, consent is no longer required for this. Electronic notification of tax assessments is intended to be the standard practice in the future. However, paper notices will still be possible. Read more about it > here!
In 2026, the top tax rate will apply to incomes exceeding €69.879.
The VAT rate for food (not drinks) in the restaurant industry is set to decrease from 19 to seven percent – as was the case during the COVID-19 pandemic from mid-2020 to the end of 2022. This reduction will no longer be temporary, but permanent. The Federal Council still needs to approve the law on December 19th for it to come into effect. Read more here!
As announced in the coalition agreement, the German government intends to create a central web portal – a "One-stop portal" - to provide a system for the digital registration of businesses. The current 6.000 different procedures at the municipal level are to be standardized. A date for this has not yet been set.
The Public Procurement Acceleration Act aims to reduce documentation requirements. Furthermore, the direct award thresholds for federal procurements are to be raised from €15.000 to €50.000. Overall, however, the federal government intends to maintain the principle of awarding contracts in lots. Where speed is essential, however, awarding the entire contract at once will suffice. This point is causing considerable concern among the skilled trades. Read more here!
Furthermore, the EU thresholds for all Europe-wide procurement procedures will be lowered. This applies to construction services. classic public contracts From January 1, 2026, it will be €5.404.000 instead of the previous €5.538.000. Read more details here!
The congress will again take place in Munich in 2026. "Future Crafts" The event will take place on March 4th and 5th, focusing entirely on skilled trades – with a wealth of information, innovations, and networking opportunities. The congress will also feature, among other things... Miss and Mister Crafts 2026 .
Editor's note: We have carefully researched this overview and will regularly supplement and update it, but all information is provided without guarantee. Unfortunately, the editors cannot answer individual questions.
by Kirsten Freund and Anne Kieserling
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