Taxpayers will be relieved in the coming year
According to a media report, many taxpayers will have several hundred euros more at their disposal in the coming year. This was reported by the Düsseldorf newspaper "Handelsblatt" on Tuesday with reference to calculations by financial scientist Frank Hechtner from the University of Erlangen-Nuremberg. One of the reasons for this is the change in the income tax rate. All changes to taxes and social security contributions as of January 1, 2024 were taken into account for the calculations.
According to Handelsblatt, a single person with an income of 3,000 euros per month will have a total of 172 euros more at their disposal in 2024. A single person earning 5,000 euros per month will have 292 euros more money. The relief will be significantly higher for a family with two children. If one partner earns 2500 and the second 4000 euros per month, the relief amounts to 508 euros. Top-earning families with an income of 16,000 euros have 1600 euros more at their disposal.
"The change to the income tax rate for 2024 will lead to significantly noticeable relief," Hechtner told Handelsblatt. The relief would be even greater if higher social security contributions were not a burden on contributors at the same time. This is because a "not insignificant part" of the relief would be "eaten up again" by higher social security contributions, Hechtner emphasized.
Childless taxpayers would be particularly affected by higher social security contributions. According to Hechtner, the additional burden for a single person in terms of social security contributions will peak at 722 euros next year. A high-earning family will have to pay a peak of 541 euros more in social security contributions in 2024.
One reason for this is that the average additional contribution rate in statutory health insurance will rise from 1.6 to 1.7 percent for many insured persons in 2024. For high earners, the contribution assessment limits in statutory social insurance will also increase.
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The media report notes that the anticipated taxpayer relief in the coming year is due in part to changes in the income tax rate. Due to these changes, a taxpayer's analysis predicts a yearly increase of 172 euros for an individual earning 3,000 euros per month, up to 1,600 euros for high-earning families.
Source: www.ntv.de
