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Klingbeil Announces 2027 Tax Reform Giving Low Earners Boost

4/24/2026

Summary

Story summary

Finance Minister Lars Klingbeil announced the coalition will pursue an income-tax reform effective Jan 1 2027.
The reform would give earners of €2,500-€3,000 before tax several hundred euros more annually.
The SPD and CDU suggested financing the reform by raising taxes on top earners, expanding the inheritance tax, cutting state subsidies and abolishing the solidarity surcharge.
Klingbeil said high-income and asset-rich individuals must contribute so disparities do not widen.

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Story summary

Finance Minister Lars Klingbeil announced the coalition will pursue an income-tax reform effective Jan 1 2027.
The reform would give earners of €2,500-€3,000 before tax several hundred euros more annually.
The SPD and CDU suggested financing the reform by raising taxes on top earners, expanding the inheritance tax, cutting state subsidies and abolishing the solidarity surcharge.
Klingbeil said high-income and asset-rich individuals must contribute so disparities do not widen.