Rachel Loxton - rachel.loxton@thelocal.com

Updated: Wed 20 May 2026 12:08 CET

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The government is hoping to reach agreement on how to pay for tax relief for lower and middle earners in Germany. Photo: picture alliance/dpa | Martin Schutt

The coalition is planning a major tax overhaul next year, with the aim of providing relief to those with low and middle incomes. What does this look like and how will it be paid for? Here's what we know so far.