As 2026 gets under way, it’s time to that do yearly dance of updates across settle-in-berlin.com, to make sure the knowledge base stays up to date. Here’s a selection of changes that might be relevant to you.
Wages and employment
- Minimum wage increase: the national minimum wage rises to €13.90 per hour from January 1, 2026 (one of the largest annual increases in recent years). This applies across most sectors and helps boost income for low-wage workers.
- Higher thresholds for mini-jobs: the earnings cap for mini-jobs (marginal employment) increases to €603 per month to reflect the higher minimum wage. This means you can earn more before tax and social contributions apply.
- EU Blue Card salary threshold rises: If you’re a highly-qualified non-EU worker, the minimum salary requirement for qualifying for an EU Blue Card increases. In many professions, this will be €50,700 per year (with lower thresholds in shortage occupations).
Taxes and social benefits
- Basic tax-free allowance (Grundfreibetrag): the amount of income you can earn without paying income tax increases to €12,348 in 2026, helping reduce your overall tax burden.
- Child benefit and family allowances: the monthly child benefit (Kindergeld) increases to €259, while the child tax-free allowance (Kinderfreibetrag) also rises. These adjustments support families with children.
- Commuter allowance (Pendlerpauschale): the tax deduction for commuting expenses increases to38 cents per kilometer and applies from the first kilometer, making your tax return more favorable if you travel regularly for work.
- Hospitality VAT rate: from 2026, the reduced VAT rate on food and drinks in cafés and restaurants is permanently set at 7 %, rather than the standard 19 %. This aims to stimulate the hospitality sector.
- Social security contribution limits: thresholds for health, nursing care, pension and unemployment insurance contributions increase (Beitragsbemessungsgrenze), meaning higher earners will pay on a larger share of their income.
- Healthcare insurance thresholds: the income threshold for choosing private health insurance increases to €77,400 per year, meaning more people stay in statutory health insurance longer.
Daily life and public services
- Deutschlandticket price rise: The popular nationwide public transport ticket increases to €63 per month from January 1, making commuting slightly more expensive for many residents.
- Public transport fare increases in some states: Beyond the Deutschlandticket, regional fare rises in cities including Berlin and Munich also take effect.
- Childcare and schooling: Starting August 2026, all first-year primary school pupils in Germany will have a legal right to full-day childcare, easing scheduling for families.
Wishing you all the success in 2026! Let me know in the comments if there are any big 2026 changes for Germany that I have missed.
