Overview
- Coverage on Wednesday, November 11, 2026 shows the government’s 2027 income‑tax reform and related pension and annual‑tax drafts are public and under Bundestag and Bundesrat review.
- The draft would cut the Handwerkerbonus for paid craft labour from 20% (max €1,200) to 15% (max €900) from 1 January 2027 while keeping the €6,000 labour cap.
- The annual‑tax draft proposes doubling statutory tax interest on late payments and refunds from 0.15% to 0.3% per month, equivalent to about 3.6% per year, effective 1 January 2027.
- Pension steps in the plans include Mütterrente III taking legal effect on 1 January 2027 with technical payouts starting in 2028 and a rise in the taxable share for new pensioners first receiving benefits in 2027 to 84.5%.
- Practical effects include modest increases in the Grundfreibetrag for 2027–28, existing prepayment rules that can shift cash‑flow burdens onto households and firms, and strong incentives to time payments before 2027 while final parliamentary votes remain pending.