Reform: Wie viel Netto bleibt Ihnen 2027 vom Gehalt?

The planned reform package by the German federal government will have a considerable impact on your income in 2027. Tax reforms and changes to social insurance schemes will significantly affect the amount of money in your bank account. Financial expert Frank Hechtner from the University of Erlangen-Nuremberg has calculated, for Handelsblatt, what remains after taxes and social reforms for citizens.

Using these data, Handelsblatt has created a new Reform calculator to show how your net salary in 2027 will develop – whether you'll have more or less than before. The outcome depends on your gross income, the number of children, and whether you are married.

The calculator takes into account the federal government's tax reform and changes in pension, health, care, and unemployment insurance. For example, contribution base limits will be raised exceptionally high in 2027, meaning higher earners will have to pay more social security contributions. Try the Handelsblatt Reform calculator to see if you'll earn more or less in 2027 than this year.

The data shows that the federal government's promise of relief for many people in Germany does not come through. While many will be relieved due to the tax reform, in many cases, higher social contributions outweigh this relief, especially at higher incomes. Even childless singles hardly benefit: they only profit between a monthly gross income of €1,500 and €5,750, with a gain of €8 to €34 per month.

Families fare better. A couple with two children, both earning €4,000, will have €416 more. If one partner earns €6,000 and the other €4,000, the advantage increases to €272. Even unmarried parents benefit up to a monthly gross income of €6,000. Data analysis only considered families with up to two children. For more children, your net income is typically higher, mainly due to higher child benefits.

However, top earners must pay significantly more. Hechtner calculates that someone earning €8,850 per month will have to pay €1,491 more in social contributions in 2027 than before, resulting in less net income despite tax relief. The basis for the data is that not every scenario could be covered, as there may be "other diverse social transfers" influencing net income.

Consequently, depending on received social benefits, the individual net income could differ from the calculator's result.