With the adjustment of the income tax rate, the basic allowance is increased and the so-called cold progression is partially compensated. Specifically, this means that part of your income remains tax-free, and the higher tariff levels only take effect later.
The effect is automatically taken into account via the payroll tax – but only if tax bracket, allowances and child data are correctly stored in the ELStAM. This is where the most common mistakes occur in practice: outdated tax class combinations after marriage, parental leave or jump in salary.
In the quarterly reviews, we check whether your payroll tax deductions fit the current situation and, if necessary, apply for allowances so that the discharge arrives monthly instead of only with the tax return in the following year.
What you should do now
- Get tax class combination checked according to life events
- Enter allowances during the year instead of waiting for reimbursement
- Redirect relief directly into savings or pensions