Saver's allowance (Sparerpauschbetrag)
The annual tax-free allowance for investment income: 1,000 euros for singles, 2,000 euros for jointly assessed couples.
In short
As of 5 October 2026The saver's allowance (Sparerpauschbetrag) is Germany's annual tax-free amount for investment income: 1,000 euros for single people and 2,000 euros for married or registered partners filing jointly. Dividends, interest and capital gains up to this limit stay tax-free. For your bank to apply it, you need an exemption order. With 800 euros of income, you then pay no tax.
Up to a certain limit, your investment income is tax-free in Germany. This saver's allowance (Sparerpauschbetrag) is 1,000 euros per year for single people and 2,000 euros for married couples or civil partners assessed jointly.
For your bank to apply it, you need to file a tax exemption order (Freistellungsauftrag). Without one, the bank deducts capital gains tax right away, and you can only reclaim it through your tax return.
Example: you receive 300 euros in dividends and make a 500-euro price gain. That is 800 euros in total, below 1,000 euros. With an exemption order in place, you pay no tax.
Related terms
Sources
- Einkommensteuergesetz (EStG), § 20 Kapitalvermögen
- Verbraucherzentrale: Steuererklärung 2025, Freibeträge
As of 5 October 2026 · Educational content, not investment or tax advice.