German income tax tariff, losses and extraordinary income
How the 2026 tariff works: five zones from the basic allowance of 12,348 € to the top rate of 45 percent, marginal and average rates, and income splitting. The second module covers loss carry-back of up to 1,000,000 € into two earlier years, carry-forward with its 70 percent limit and the § 39a wage tax allowance. The third covers the one-fifth rule for severance pay, the 45,000 € allowance on a business sale and the reduced rate of 56 percent of the average rate. Three modules, each with a fully worked case study.
Intermediate3 modules62 minModule 1 free to read
2026 rules — verified on September 23, 2026
Figures are tied to dated, sourced tax constants. A module whose rules have changed is flagged for review, and is unpublished automatically beyond 90 days.
By the end of this course, you can…
These outcomes are the modules' own: the promise cannot say anything the course does not teach.
- distinguish the steps from income per source to taxable income under § 2 EStG
- apply the five zones of the 2026 tariff with their limits and formulas
- tell the marginal tax rate from the average tax rate and use each one correctly
- recompute the splitting procedure and estimate its advantage
- recognise which provisions expressly displace the tariff
- distinguish offsetting losses within one year from deducting losses across years
- compute the loss carry-back under § 10d(1) with its ceilings and its order
- apply the loss carry-forward with its base amount and percentage limit under § 10d(2)
- assess the significance of the separate determination under § 10d(4)
- apply for an allowance under § 39a and recognise its consequence for the duty to file
- apply the closed list of extraordinary income in § 34(2)
- recompute the one-fifth rule step by step and recognise its limits
- understand why the employer taxes a severance payment without the one-fifth method
- compute the allowance on a business sale or closure with its age condition and taper
- compare the reduced rate of § 34(3) with the one-fifth rule
The programme, module by module
Each module has its own page. Durations are derived from the actual text, never announced by hand.
- Module 121 minFree — no accountThe § 32a tariff: five zones, two tax rates and income splittingWhat you will be able to do
- distinguish the steps from income per source to taxable income under § 2 EStG
- apply the five zones of the 2026 tariff with their limits and formulas
- tell the marginal tax rate from the average tax rate and use each one correctly
- recompute the splitting procedure and estimate its advantage
- recognise which provisions expressly displace the tariff
- Module 221 minIncluded in the full courseUsing losses: offsetting, carry-back, carry-forward and the wage-tax allowanceWhat you will be able to do
- distinguish offsetting losses within one year from deducting losses across years
- compute the loss carry-back under § 10d(1) with its ceilings and its order
- apply the loss carry-forward with its base amount and percentage limit under § 10d(2)
- assess the significance of the separate determination under § 10d(4)
- apply for an allowance under § 39a and recognise its consequence for the duty to file
- Module 320 minIncluded in the full courseExtraordinary income: the one-fifth rule, business disposals and the reduced rateWhat you will be able to do
- apply the closed list of extraordinary income in § 34(2)
- recompute the one-fifth rule step by step and recognise its limits
- understand why the employer taxes a severance payment without the one-fifth method
- compute the allowance on a business sale or closure with its age condition and taper
- compare the reduced rate of § 34(3) with the one-fifth rule
What you take away
A handout you keep, not just a page you read. The sections are derived from the course itself: what is announced here is exactly what gets generated.
Participant handout (PDF)
PDF
- Learning objectives (3)
- Key figures (10)
- Mistakes to avoid (3)
- Official sources (3)
Exercise workbook (Word)
Word
- Learning objectives (3)
- Key figures (10)
- Mistakes to avoid (3)
- Official sources (3)
Answers live in a separate appendix: the participant handout and the workbook stay distributable before the exercise.
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Educational content, current with the sources cited. It does not replace advice tailored to your situation. These courses are neither certifying nor CPF-eligible: they prepare for no certification registered with the French RNCP or specific register.