Tax reform 2025: More net for employees and pensioners!

Tax reform 2025: More net for employees and pensioners!

Österreich - In 2025, employees and pensioners can look forward to noticeable relief. The reason for this is the partial abolition of the so -called cold progression, which led to the fact that many taxpayers slip into higher tax classes due to nominal salary increases without earning more money. From January 1, 2025, the wage tax tariff levels will be increased significantly, which has a total tax relief of around two billion euros. This reports, among other things, kosmo.at .

The control tariffs are adjusted in several stages, whereby the lowest tariff level is raised from 12,816 euros to EUR 13,308, so that first earners who are below this border can only achieve noticeable advantages if there is a wage increase. For employees with a gross monthly income of 1,700 euros, savings of EUR 121 annually result, while a saving of 538 euros is expected with an income of 7,000 euros. These calculations do not reveal any influence of previously decided wage increases, so that the actual additional income could be even higher. In addition, the small business border is raised to 55,000 euros, which is a simplification for many small companies.

updated control tables in Germany

parallel to the developments in Austria, there are also changes in the tax table in Germany, which will come into force from January 1, 2025. The basic allowance increases from 11,784 euros to 12,084 euros, which is particularly important for people with low incomes. The second tax level, which has a progressive tax rate of 14 to 24 percent, ends in 2025 at 17,430 euros. This means that taxpayers can also benefit from the new limit values. These innovations were reported, among other things, by finance.de . A tax rate of 24 to 42 percent applies to income between 5,006 euros and 66,760 euros

Overall, both the Austrian and German tax reforms aim to reduce the pressure on taxpayers and to expand the financial scope of the citizens. The new tariff structure is intended to lead to more net of gross, which is a welcome relief for many employees.