Taxpayers expect major relief in 2024 - financial expert analyzes the effects

Taxpayers expect major relief in 2024 - financial expert analyzes the effects

According to a report by www.n-tv.de, changes to the income tax rate will take effect from next year, which should lead to significant relief for many taxpayers. According to calculations by financial scientist Frank Hechtner from the University of Erlangen-Nuremberg, many taxpayers could have hundreds of euros more at their disposal in 2024.

A single with an income of 3,000 euros per month will have a total of 172 euros more available in 2024. Singles who earn 5,000 euros per month can expect 292 euros more money. Families with two children, where one partner earns 2,500 euros and the second 4,000 euros per month, should have a relief of 508 euros. Top-earning families with an income of 16,000 euros can even expect to have 1,600 euros more at their disposal.

However, the financial scientist points out that higher social security contributions will eat up some of this relief. Taxpayers without children and high-earning families will be particularly affected by the higher social security contributions. The average additional contribution rate in statutory health insurance will rise from 1.6 to 1.7 percent in 2024, and high earners will also have higher contribution assessment limits in statutory social insurance. Nevertheless, there will also be a number of relief measures next year, such as an increase in the basic tax allowance and the child allowance as well as the shift in tax rates to compensate for the so-called cold progression.

These changes are expected to result in a better financial situation for many taxpayers. However, it remains to be seen how the actual impact on the market and the financial industry will develop. It is important to follow developments closely and make adjustments to financial planning if necessary.