Tax expert does the math: This is how much more of your salary you will have in 2024 (stern+)

Tax relief - Tax expert does the math: This is how much more of your salary you will have in 2024

It is currently unclear how the chaos surrounding public finances will continue. But there is also good news for private households when it comes to money: Various tax relief measures for employees will come into force in 2024. They will ensure that many families will have several hundred euros more in their pockets for the same salary than this year.

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Financial scientist Frank Hechtner from the University of Erlangen-Nuremberg has calculated who will be relieved by how many euros. The evaluation, which was first reported in the Handelsblatt newspaper and which the tax expert made available to stern , shows that taxpayers will have more in their wallets in 2024 even if one takes into account the fact that social security contributions will rise sharply at the same time.

For example, a childless single person with a gross monthly income of €4,000 will have a net €225 more per year at their disposal than in 2023. A family with two children, where both parents earn €4,000, will be relieved by €620. For very high incomes, the relief amount can rise to 1,600 euros.

Hechtner 's calculations take into account not only income tax and the solidarity surcharge, but also social security contributions. Specifically, the calculations include the following reductions and reductions compared to 2023:

The basic tax-free allowance, up to which no tax has to be paid at all, increases from €10,908 to €11,604.
The other key values of the tax rate will also change. This means that the tax rates that apply today will only apply to slightly higher incomes in 2024 (only the "wealth tax rate" will not be reduced).
The child allowance will increase from 3012 to 3192 euros per parent.
The exemption limit for the solidarity surcharge for top earners will be increased.

On the other hand, the increase in the contribution assessment limits for statutory pension and unemployment insurance as well as health and long-term care insurance will have a negative impact. In addition, the additional health insurance contribution will rise from 1.6% to 1.7% on average. The increase in long-term care insurance and the new surcharges for those without children (and reductions for children), which will apply in the second half of 2023, are also included in the year-on-year comparison. The calculations do not take into account income replacement and transfer payments, social benefits and church tax.

Some of the tax relief will therefore be eaten up by higher social security contributions. Nevertheless, according to Hechtner's calculations, taxpayers usually end up with more in their pockets. How much more depends on income and family situation. Childless people benefit less overall than families with children, as the following tables show.

Table: Annual relief in 2024 (compared to 2023) with single assessment

Gross monthly income (in euros)	Relief single without children (in euros)	Relief single parent, 1 child (in euros)
1.000	21	30
1.500	112	-1
2.000	141	111
2.500	153	161
3.000	172	179
3.500	196	202
4.000	225	233
4.500	260	268
5.000	292	299
5.500	217	238
6.000	294	303
6.500	375	376
7.000	563	455

Source: Prof. Dr. Frank Hechtner, University of Erlangen-Nuremberg

The tables show that the specific amount of tax relief increases as income rises (at least up to the top tax rate). This means that those who pay more tax also receive more relief. According to Hechtner, the negative individual value for single parents can be explained by the increase in the mini-job threshold and the associated increase in social security contributions in the sliding zone. The table for the relief for families refers to a couple with two children who are jointly assessed for tax purposes and receive child benefit or child allowances accordingly.

Table: Annual tax relief 2024 for families with two children (split rate)

Gross monthly income of thefirstspouse(in euros)	Gross monthly income of the second spouse (in euros)
0	1.000	2.000	3.000	4.000	5.000	7.000	10.000
1.000	39	78	290	409	453	501	528	744
1.500	18	181	357	412	462	514	557	791
2.000	-3	290	374	419	473	531	616	840
2.500	114	382	395	446	508	568	665	909
3.000	263	409	419	473	542	608	736	982
3.500	357	430	446	508	579	653	791	1.059
4.000	380	453	473	542	620	718	847	1.137
4.500	401	481	506	579	663	775	904	1.200
5.000	414	501	531	608	718	840	957	1.398
5.500	297	392	432	520	645	759	899	1.454
6.000	335	434	482	602	725	823	977	1.454
6.500	375	480	532	656	783	889	1.059	1.454
7.000	419	528	616	736	847	957	1.143	1.454
7.500	282	401	491	620	740	860	1.069	1.305
8.000	297	444	530	646	775	903	1.161	1.268
8.500	381	528	602	724	861	995	1.454	1.268
9.000	445	596	678	806	947	1.091	1.454	1.268
9.500	531	668	756	892	1.041	1.181	1.454	1.268
10.000	601	744	840	982	1.137	1.398	1.454	1.268
15.000	1.579	1.600	1.574	1.574	1.573	1.564	1.195	1.002

Source: Prof. Dr. Frank Hechtner, University of Erlangen-Nuremberg

In addition to these tax cuts that have already been decided, there could be more in the new year. Finance Minister Christian Lindner has declared that he also wants to increase the basic tax-free allowance and child tax-free allowance once again due to the higher citizen's allowance. This is to apply retroactively from January 1, 2024. According to Hechtner, the planned increase in the basic tax-free allowance would lead to a further reduction of 33 euros.