What changes in Germany in July 2026: Pensions, taxes, flight ticket levy and more

How high the increase is in concrete terms depends on the individual pension received. According to the figures, a 'standard pensioner' with average earnings and 45 contribution years would receive a monthly pension that is 77.85 euros higher. Someone receiving around 1,000 euros in pension would get about 42.40 euros more. The income allowances for widow's and orphan's pensions will also be raised.

Falling air traffic tax and end of the 'fuel discount'

Anyone departing from a German airport will pay less ticket tax from July. The air traffic tax will fall depending on the route by an amount between 2.50 euros and 11.40 euros per flight, which reduces the levy by around 16 percent and returns it to the level prior to the increase of 1 May 2024. On medium-haul routes, the tax will fall from 39.34 euros to 33.01 euros, while a figure of 13.03 euros is shown in the table for short-haul routes.

The reduction was decided by the Bundestag in May. The tax generally applies to all departures from a German airport, excluding pure transit passengers. The so-called 'Tankrabatt' (fuel discount) on fuels will also expire as planned on 30 June. According to the Federal Government's representation, it is prepared for possible price jumps: 'Should prices explode contrary to expectations, our toolbox is full and we can, within 14 days and even during the recess period, adopt decisions with the German Bundestag by convening a special session,' said Sepp Müller, deputy chairman of the CDU/CSU parliamentary group.

From 'Bürgergeld' to 'Grundsicherungsgeld'

The previous 'Bürgergeld' will be converted in July into a new basic income support, which under the name 'Grundsicherungsgeld' provides for stricter rules and harsher sanctions. The amount of the social benefit does not change. The previous grace period, during which benefit recipients were allowed to retain more assets, will be abolished. The protected assets ('Schonvermögen') will in future be graduated by age: 5,000 euros up to age 30, 10,000 euros up to 40, 12,500 euros up to 50 and 20,000 euros from age 50. Previously, 40,000 euros were protected in the first year and 15,000 euros thereafter. In addition, single parents with children from the age of 15 months must be available to the labour market, instead of only from three years as before. Stricter rules apply to people receiving 'Bürgergeld', up to and including possible total sanctions, it is stated.

Minimum wage in care work rises

In the care sector, the minimum wage will rise on 1 July: care assistants will receive 16.52 euros per hour instead of 16.10 euros, qualified care assistants 17.80 euros instead of 17.35 euros, and skilled care workers 21.03 euros instead of 20.50 euros. The Federal Government has set this by ordinance. According to the available figures, around 1.3 million employees work in facilities covered by the care sector minimum wage.

Customs fee on cheap imports from third countries

From July, orders placed with cheap online shops from non-EU countries such as Temu, Shein or AliExpress will be subject to a flat customs fee of three euros per parcel with a goods value of up to 150 euros, graduated according to the declared product category. Previously, goods up to 150 euros were customs-free. Within the EU, taxes and duties are generally waived – exceptions apply only to coffee, alcohol and tobacco products and their substitute products. Some shipping service providers also charge a service flat rate for customs clearance if the sender has not already done so. According to the Berlin Consumer Advice Centre ('Verbraucherzentrale Berlin'), a mobile phone case worth 7 euros could end up costing nearly 20 euros.

The seizure-free allowance for single persons will rise on 1 July to 1,587.40 euros net per month, having previously been 1,555 euros. For 'P-Konten' (seizure protection accounts), the amount is rounded up to the next full ten-euro figure, so that 1,590 euros applies there. The allowances have been adjusted annually since 2021 – instead of every two years as before – to reflect the cost of living.

Tax return via app and other consumer rules

For tax returns, July 2026 brings a digital new simplification: an income tax return via app on a smartphone or tablet is to become available nationwide for initial groups. From 1 July, the tax return via app on smartphone or tablet with just one click should be available nationwide for the first user groups. Around 11.5 million people can be included in the first round, including single childless employees as well as retirees and pensioners. The deadline for self-prepared returns for the calendar year 2025 ends on 31 July 2026; for cases handled with professional advice, 30 April 2027 applies.

Further innovations affect consumer issues: from July, retailers must provide return options for e-cigarettes, cosmetic products with certain allergenic fragrance substances become subject to labelling requirements, a 'right to repair' comes into force and the chemical BPA is banned in food packaging. Also new: Section 4c of the Road Traffic Act ('Straßenverkehrsgesetz') will in future prohibit the transfer of points in Flensburg to another person. Violations and attempts can be punished with fines of up to 30,000 euros. For Cologne Cathedral, an entry price of 12 euros will also apply from 1 July in order to cover increased costs for maintenance, protection and ongoing operations.

Finally, the wolf will be included in the Federal Hunting Act ('Bundesjagdgesetz'). The federal states can thus permit hunting in regions where the wolf is in a favourable 'conservation status'. The hunting season is scheduled from 1 July to 31 October. If a wolf has killed or injured grazing animals, it may be shot regardless of conservation status and hunting season.

With the changes coming into force, the parliamentary summer recess also begins. Observers expect that the pension adjustment and the reform of basic income support in particular will dominate the political debate in the coming weeks.