From 2026 onwards, a series of legislative changes will come into force in Germany, affecting both household income and everyday expenses. While several measures aim to provide financial relief, certain costs will increase.

Income and social benefits. Pensions are expected to rise by around 3.7 percent from July 2026, subject to final approval. Families will benefit from higher child benefits of €259 per month per child, along with an increased child tax allowance. The statutory minimum wage will increase to €13.90 per hour, improving income levels and raising the earnings threshold for mini-jobs.

Taxation and mobility. Commuters will be able to claim a higher travel allowance of 38 cents per kilometre from the first kilometre. For motorists, several changes are planned, including the introduction of a digital driving licence, adjustments to vehicle tax payments and extended tax exemptions for electric vehicles until 2035. New vehicles will also be required to include an updated emergency call system.

Higher costs and consumer transparency. At the same time, the price of the Germany Ticket will rise to €63 per month. Measures are also being introduced to improve transparency in credit assessments, allowing consumers to access their Schufa score free of charge. Additionally, the return of electronic cigarettes will be simplified to support recycling and environmental protection.

Compiler of the selection - Anastasiia Malyshenko