Changes in 2025: What will be cheaper with the turn of the year and what will be more expensive

Relief and more money on the one hand, burdens and increases in prices on the other – with the turn of the year, changes came into force that are noticeable in the wallets of millions of people. An overview:

Where citizens are relieved or receive more money:

The basic tax allowance – i.e. the income up to which no tax has to be paid – increases to 12,096 euros (+ 312 euros), the child allowance to 9,600 euros (+ 30 euros per parent). The result: less tax is due. In addition, the basic parameters of the tax rate have been shifted slightly, so that higher tax rates only apply to higher incomes. Families now receive more child benefit: 255 euros per child, instead of the previous 250 euros. The additional immediate child allowance for families with low incomes was also increased by five euros to 25 euros per month. Anyone who earns the minimum wage gets a little more: employers have to pay at least 12.82 euros per hour at the beginning of the year (+ 41 cents). The minimum salary for trainees in their first year of training also increases by 4.7 percent to 649 euros per month. As part of the minimum wage increase, the upper limit for so-called mini-jobs also rises from 538 to 556 euros per month. Citizens with low incomes receive a higher rent subsidy from the state: The monthly housing benefit increases by an average of 30 euros or 15 percent.

Where citizens are more burdened:

Most people with statutory health insurance will now pay noticeably higher health insurance contributions. The corresponding additional contribution that the health insurance companies charge themselves has risen in some cases by significantly more than one percentage point. In addition, there will be an increase in premiums for nursing care insurance of 0.2 percentage points. The increases also burden employers, who pay half of the contributions. High earners pay higher social security contributions. The so-called contribution assessment limit in statutory pension insurance is now uniformly set at 8,050 euros – contributions are due up to this monthly income (previously 7,450 euros in the east, 7,550 euros in the west). In health and nursing care insurance, the limit is now 5,512.50 euros of income per month (previously 5,175). The so-called CO2 price rises from 45 to 55 euros per ton of carbon dioxide (CO2) emitted. This could make heating and refueling more expensive. It is estimated that the price of gasoline and heating oil will increase by around 3 cents per liter. The gas storage levy, which makes up part of the price of natural gas, will rise from 2.50 to 2.99 euros per megawatt hour (around 0.3 cents per kilowatt hour). For a household with an annual consumption of 20,000 kilowatt hours, there are additional costs of almost ten euros per year. A standard letter from Deutsche Post now costs 95 cents – 10 cents more. Other types of postal shipments are also becoming more expensive. Citizenship benefit recipients will not receive a surcharge this year. There is a zero round. Asylum seekers receive less money for living expenses. The monthly requirement rates, depending on age, living and family situation, have fallen by 13 to 19 euros. The Germany ticket now costs 58 instead of 49 euros.

If burdens and relief are compared, according to calculations by the German Economic Institute, some households could have less money available this year, others a little more. According to this, a single with a rather low income of 30,000 euros per year would have 47 euros less net per year than in 2024, while high earners with a gross annual salary of 70,000 euros would have an annual loss of 236 euros. Couples with children and a joint gross annual income of up to 90,000 euros could end up with a slight plus of 40 to 50 euros.