Tax changes in 2026: How you can benefit if you act now

The new year brings numerous tax changes once again. In 2026, more than ever, those who plan ahead will benefit – and those who wait will pay the price. Our experts summarise the most important changes for entrepreneurs, freelancers and private individuals – in a compact, understandable format with clear tips on how you should act now.

Our tax advice for businesses and private individuals helps you to identify the tax changes for 2026 at an early stage and make strategic use of them. Early tax planning is particularly worthwhile for medium-sized companies in order to optimise their investments.

1. Declining balance depreciation & e-mobility: investments pay off

From 30 June 2025, companies will have the option of depreciating movable assets on a declining balance basis at up to 30%. This will lead to a significant reduction in the tax burden, particularly for vehicles and machinery. A particularly advantageous feature is that electric vehicles can also benefit from special depreciation allowances amounting to 75% in the first year. This depreciation rule also applies to the purchase of used vehicles.

In addition, the taxable benefit for purely electric vehicles is calculated at only 0.25% of the gross list price, which means that the taxable monetary benefit shrinks to a quarter of that for combustion engine cars in terms of income tax. This rule now also applies to electric vehicles with a gross list price of up to €100,000, instead of €70,000 as was previously the case.

Tip: Those who invest in 2026 can bring forward costs and secure liquidity.

2. Corporation tax is falling – review your structure now

The planned reduction in corporate tax to 10% (from 2028) makes it sensible to reconsider the legal form and appropriation of profits now.

Example: A limited company or holding structure can bring long-term tax advantages if profits are retained.

Tip: Have your corporate structure reviewed at an early stage – small changes can have a big impact.

3. Mandatory e-billing is coming – 2026 is the preparation year

From 2028, e-billing will be mandatory for all companies, but many businesses will need to be technically prepared as early as 2026.

Those who start the transition in good time will save twice: less paperwork and less stress during audits.

Tip: We can support you with the strategic and technical implementation.

4. More net income: new allowances and lump sums

In 2026, private individuals will benefit from higher basic allowances (€12,348) and child allowances (€3,414). The commuting allowance will also be standardised – €0.38 from the first kilometre.

Tip: Take advantage of these changes for targeted tax optimisation – especially in conjunction with your wage or income tax return.

5. Active pension & new pension rules

Working in old age is now more worthwhile: from 2026, people who have reached the statutory retirement age will be able to earn up to €2,000 per month tax-free. There is also new flexibility when it comes to pension provision and company contributions.

Tip: Combine your pension and tax strategies – this will save you tax in the long term.

6. Reduction in VAT on restaurant sales

From 1 January 2026, the sales tax rate on food consumed on the premises will be permanently reduced from 19% to 7%. Takeaway food will continue to be taxed at 7%.

Conclusion: Take action now – before the tax office makes a decision

The year 2026 opens up many new opportunities to benefit from tax advantages. The key is to recognise and implement them in good time.

Our recommendation: Don’t wait for your tax return – actively shape your tax year with us. Take advantage of the opportunities in 2026 – with our tax advice for businesses and private individuals.

Further information:

The legal basis for tax changes can be found at the Federal Ministry of Finance.