Tax : German cabinet approved the Einkommensteuerreformgesetz 2027 on 2 September. The Bundestag and Bundesrat still have to approve it.
The basic tax-free allowance rises from 12,348 € to 12,564 € in 2027 and to 12,900 € in 2028.
Kindergeld rises from 259 € to 267 € per child per month in 2027, and then to 272 € per child per month.
The Arbeitnehmer-Pauschbetrag rises from 1,230 € to 1,430 €.
A new 47% top tax rate applies from 280.000 €. [1]
Tax :From 1 September, Lohnsteuerhilfevereine may advise members on rental income with no income ceiling. The previous caps of 18.000 € for single assessment and 36.000 € for joint assessment are abolished. If you have been paying thousands to a tax advisor only because of a rented flat, a Lohnsteuerhilfeverein is now an option. You can get a free quote from a Lohnsteuerverein tax advisor we recommend here. [3]
Energy : Super E10 hit an all-time nominal high of 2.215 € per liter in the national daily average on 2 September. Since 1 April, gas stations may raise prices only once per day, at 12:00. According to ADAC's analysis, filling up shortly before 12:00 is the cheapest. [5]
Law : From 27 September, environmental advertising claims must be substantiated. Terms like "klimaneutral", "umweltfreundlich" and "sustainable" will need evidence, and only certified seals may be used. [7] [8]
Law : GARAN-Label: Manufacturers advertising a guarantee longer than two years on a whole product must display manufacturer details, the guarantee terms, and a notice that your statutory rights are unaffected. A two-year statutory warranty already applies to all new goods bought in the EU.[9]
Insurance : Health insurance income ceilings increase by 300 € per month in 2027. If you are a high earner, you'll pay 26 € more per month. [4]
If you are unsure which health insurance plan makes sense for your situation, you can consult an insurance broker. You can book a call with the Insurance broker we recommend.
Watchout : Annual Warntag takes place on 10 September. Sirens will sound at 11:00 nationwide. You do not need to do anything when the siren sounds. [10]
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Watchout
Deadline : The deadline to file the 2025 income tax return (Steuererklärung) has passed. If you missed the deadline, you can hire a tax advisor. The deadline with a tax advisor extends to March 1, 2027.
Deadline : The 2027 Deutschlandticket price must be set by 30 September 2026. It is the first price fixed under the VMK cost index rather than by political negotiation. The index weights personnel costs at 55%, energy at 20%, and other operating costs at 25%. Media reports indicate € 66,40 per month from 1 January 2027, up from € 63. From 2027, the price rises automatically each New Year. [1]
Deadline : To switch car insurer for 2027, your cancellation must reach your current insurer by 30 November 2026. You can learn more about car insurance here.
Phishing : The following phishing attempts have been reported.
Fake emails claim you owe a tax back payment. They imitate ELSTER and push you to pay through a link in the email. [1]
Fraudulent letters are circulating in the name of the Statistisches Bundesamt. They claim to be a Destatis or Eurostat survey and demand company data, threatening legal action if you do not respond. [2]
Warnings
Be careful about the 20x leverage offered by Bitpanda. A 20x leverage means 1,000 € of your own money buys 20,000 € of shares. This is 19,000 € borrowed from Bitpanda. Stiftung Warentest warns that losses can exceed the amount you put in. The daily financing fee is 0.18% on the borrowed capital. So, on a 9,000 € loan, it's 16.20 € per day or around 500€ a month. Bitpanda admitted to Stiftung Warentest that a worked example on its own Academy page is wrong. [3]
Product Recall : The following products have been recalled by the manufacturer.
BabyOne has recalled the Avionaut Pixel 3 infant car seat because of a production fault in the carry-handle mounting. If you grip the seat at the sides of the handle and push the handle from below, it can detach from the seat. [4]
Fleischwaren-Wulff has recalled several Streichmettwurst products over possible Listeria monocytogenes contamination. Listeria is particularly dangerous for pregnant women, newborns, older people, and anyone immunocompromised. [5]
For emergencies:
BSI Lagezentrum: +49 228 999582 5110
BaFin Consumer Protection: consumer@bafin.de
Police: 110.
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News : The EU has put ChatGPT under its strictest set of online rules. On 31 August, the European Commission designated OpenAI a "Very Large Online Search Engine" under the Digital Services Act. The reason is that it has around 159 million monthly users in the EU. In practice, that means OpenAI now has to report how it protects minors, handles illegal content, and manages risks to users. OpenAI has until January 2027 to comply. [1]
Launch : ChatGPT launched GPT-6 Astra. As per the benchmarks, it's better and cheaper than Claude's Fable 5.
Latest News
Rise in inflation
German inflation rose to 2.9% year-on-year in August 2026, according to preliminary Destatis figures. That is up from 2,8 percent in July.
Energy prices are 10.5% higher than a year ago.
Core inflation excluding food and energy sits at 2,4%.
ARAG reports 63% more employment-law cases since 2021. Unfair dismissal suits rose by 33% in 2025 and by 10% again in the first half of 2026. This is largely due to rising job cuts at major German companies, such as VW, Bosch, and BMW. In labor law, you pay your own lawyer's fee even if you win (§ 12a ArbGG). Hence, having employment legal insurance is recommended to cover legal fees. WGV*, KS-Auxilia*, and Arag* are rated the best legal insurance plans by independent rating agencies. [1]
The Volkswagen supervisory board unanimously approved the "Zukunftsplan 2030" on 3 September. The plan calls for a group-wide adjustment of around 50,000 positions, including management roles. European capacity currently exceeds demand by more than 500.000 units. [2]
A team of Taliban representatives to coordinate deportations of Afghan nationals. The representatives are not accredited diplomats and will leave after a short stay. [3]
Community Corner
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New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Pension : The federal government determined to abolish penalty-free early retirement after 45 years of contributions (Rente mit 63). The opposition against it failed. The legislative process is expected to conclude by the end of 2026, with implementation beginning in early 2027. The opposition now shifts to the length of the transition period. [1] Pension :...
New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Pension : 68% of Germans oppose the government's plan to end "Rente mit 63" (found in an Insa poll for Bild). Rente mit 63 allows you to retire by 63 without reducing your pension if you have contributed to the pension fund for 45 years. Only 24% support ending the scheme. The poll surveyed 1,005 people on 6 and 7 August 2026. Read more -> Insurance :...
New here? Check out GermanPediaDid someone forward you this? Subscribe to this newsletter. Your unfair advantage in Germany Essentials Law : From August 1, 2026, first-grade children have a legal entitlement to all-day education and care. If your child starts first grade this school year, your local school or municipality must offer a place. It can either be at an all-day school or through after-school care. The right expands gradually. It extends to grades two through four in the following...