Top 5 Tax Changes 2026 for the Self-Employed in Germany

2026 brings several tax reliefs for the self-employed and freelancers in Germany – plus a few new obligations. The basic allowance rises, the solidarity surcharge threshold climbs, and the tax brackets are adjusted against bracket creep. The bottom line: many keep more net income.

At the same time, the statutory minimum wage and the minijob limit go up – relevant for anyone employing helpers or minijobbers. And in the B2B world, the e-invoice finally becomes the standard you need to prepare for.

We have summarised the five most important tax changes 2026 for the self-employed – with all the concrete figures, so you know exactly what changes for your business.

1. Basic allowance rises to €12,348

The basic tax-free allowance (Grundfreibetrag) – the share of your income that stays entirely tax-free – rises in 2026 by €252 to €12,348 (2025: €12,096). For jointly assessed married couples and registered partners, the amount doubles to €24,696.

In practice this means: income tax only kicks in once your taxable profit exceeds €12,348. For founders, part-time self-employed and solo entrepreneurs with thin margins, that is a noticeable relief – and one more reason to track your business expenses carefully to keep taxable profit low.

2. Solidarity surcharge threshold climbs to €20,350

Since 2021, only a minority of higher earners still pay the solidarity surcharge (Soli). The threshold below which no soli is due rises again in 2026: to €20,350 of assessed income tax for single filers (2025: €19,950) and €40,700 for jointly assessed couples.

That means the soli only applies once your assessed income tax exceeds this limit – and even then it is phased in gently via the so-called mitigation zone. For the vast majority of the self-employed, the soli remains a non-issue.

3. Tax brackets shift – less bracket creep

So that profit increases are not immediately eaten up by a higher tax rate, the legislator shifts the bracket thresholds upward in 2026. The top rate of 42% now only applies from a taxable income of €69,879 (2025: €68,481).

This adjustment against bracket creep (kalte Progression) ensures that a purely inflation-driven increase in your fees does not push up your average tax burden. It is especially relevant for the self-employed with profits between €30,000 and €80,000.

4. Minimum wage €13.90 and minijob limit €603

If you employ helpers or minijobbers, you have to recalculate in 2026: the statutory minimum wage rises on 1 January 2026 to €13.90 gross per hour (2025: €12.82). A further step to €14.60 follows in 2027.

Because the minijob limit is tied to the minimum wage, it rises in 2026 to €603 per month (2025: €556). A minijobber can therefore work around 43.4 hours per month without breaching the limit. Plan your hours and payroll accordingly.

5. E-invoice: receiving is mandatory, sending is coming

Since 1 January 2025, every business in the B2B sector must be able to receive and process e-invoices – including you as a self-employed person or freelancer. A plain PDF invoice does not count as an e-invoice; the law means structured formats such as XRechnung or ZUGFeRD.

For sending, a transition period applies: until the end of 2026, everyone may still send paper or PDF invoices. From 2027, sending becomes mandatory for businesses with more than €800,000 in prior-year turnover, and from 2028 for everyone else. Small businesses under § 19 UStG (Kleinunternehmer) are permanently exempt from sending – but they too must be able to receive. With Norman's e-invoicing you create and receive compliant invoices without extra software.

What you should do now

The reliefs come automatically via the tax tariff – you do not need to act on those. But you should react to:

• Set up e-invoicing, so you can receive structured invoices right away.
• Adjust payroll if you employ minijobbers (€13.90 / €603).
• Check prepayments: with rising profits it pays to review your estimated tax payments to avoid back payments.
• Keep an eye on deadlines – all 2026 dates are in the tax calendar.

If you are still under the small-business scheme: the turnover limits of €25,000 (prior year) and €100,000 (current year) continue unchanged in 2026. Details in the guide on the Kleinunternehmer VAT exemption.

Conclusion

On balance, 2026 is a good tax year for the self-employed in Germany: a higher basic allowance, more headroom on the soli, and a tariff that cushions inflation. The biggest to-do remains the e-invoice – get set up and there is no stress. Norman helps you handle bookkeeping, e-invoicing and taxes automatically in one place, so you fully capture the 2026 reliefs.