New in 2021: that will change starting today

In all likelihood, the new year will not only give the Germans a vaccination way out of the crown crisis, but also a new federal government. There will be elections in the fall, as Chancellor Angela Merkel noted in her New Year’s speech after 15 years in office.

Even before that, with the turn of the year today, new rules will come into effect for millions of people in the country: the solidarity surcharge does not apply to around 90 percent of German citizens, families can expect more benefits for kids and higher allowances, and the price of CO2 means heating and refueling. but probably more expensive. And these are just some of the innovations.

Tax and finance:

VAT: Anyone who goes shopping in January will quickly notice: after being lowered in the second half of 2020, VAT will rise again to its usual rates of 19 and 7 percent. Although this certainly brings something along with the end of the month, it is not a structural added burden, but the end of a temporary relief.

Solidarity surcharge: After a quarter of a century, a special tax ends today: the solidarity surcharge no longer applies to income tax; at least for the poorest 90 percent of the population, an additional 6.5 percent only have to pay partially. Solos should only be done unchanged with very high income.

Income tax: For all taxpayers, it increases the basic tax-free allowance on which no tax is due. In 2021 it will be 9,744 euros instead of the previous 9,408 euros. The limit above which the maximum tax rate of 42 percent is owed rises slightly to an annual income of 57,919 euros. Also, single parents can deduct higher support payments from taxes. Also, the tax rate is adjusted for inflation to counter the so-called cold progression, and quite generously, as the government expected an inflation rate of 1.5 percent, but due to the crown crisis, this is only around 0.5 percent.

Vehicle tax: TO The new registrations will increase the vehicle tax when fuel consumption is high; this is intended to create an incentive for more climate-friendly vehicles. On average, however, it is only about 16 euros more expensive a year, and for many cars nothing changes. Cars that have already been registered are not affected.

Global amounts for the disabled: Nothing has happened here since the 1970s, and now tax breaks for people with disabilities are increasing significantly. Depending on the degree of disability, it is now 384 to 2,840 euros instead of the previous 310 to 1,420 euros. In addition, the so-called increased lump sum for the disabled for the blind or defenseless will be increased from € 3,700 to € 7,400.

Home office flat rate: Those who currently work from home receive a tax credit. Five euros per day can be claimed at the tax office at the central office, but a maximum of 600 euros per year. The flat rate is counted among the advertising costs. Therefore, only those taxpayers who exceed the already applicable advertising rate of 1000 euros benefit from it.

Contribution evaluation limits: In the west, contributions to the compulsory pension and unemployment insurance are paid up to a monthly income of 7,100 euros, in the east of Germany up to 6,700 euros. The limit increases a few hundred euros each time. For compulsory health and long-term care insurance, the new maximum assessment limit is nationally 4,837.50 EUR per month. So far it was 4,687.50 euros.

Life insurance: Consumers will be better able to compare life insurance policies in the future. Insurance companies must indicate the so-called effective costs as of January according to uniform criteria. This makes it easier for clients to see how the cost of a contract affects the payment of life insurance.

Credit card payments: Payments on the Internet are increasingly secure, but also a little more complicated. In the future, it will be enough to pay with Visa, Mastercard or Amex in online stores. It is no longer enough to enter the check digit on the back of the card next to the credit card number. As of January 15, 2021, payments of 250 euros or more must be approved with two independent factors, as of February 15, the “two-factor authentication” will take effect from 150 euros. The rules will apply in full from mid-March 2021.

Social benefits:

Child benefit and child benefit: Starting in January, the state subsidy for the first and second child will increase from 204 to 219 euros per month, for the third child from 210 to 225 euros and for the fourth child from 235 to 250 euros. The tax-free child allowance will also be increased by more than € 500 to € 8388. There is also an increase in the child allowance, an additional benefit to the child allowance for low-income families. Here the maximum amount increases from 185 to 205 euros per month.

Basic pension: Anyone who has at least 33 years of employment, parenting and childcare contributions, but still receives a small pension and also does not have a partner with sufficient income, will receive a premium in the future. At first, around 1.3 million retirees will receive an average of 75 euros more, automatically and without a request, because the pension insurance verifies the right and pays it. But because this means a huge administrative effort, for example through data exchange with tax offices, the basic pension will officially start on January 1; payment will be delayed until the middle of the year and then made retroactively.

Interest: For retirees in the West, after the strong premium of 2020, there will probably be no increase in pensions on July 1, 2021, due to falling average wages as a result of the crown crisis. Retirees from the East can expect at least a 0.7 percent increase. The final decision will be made in the spring.

Hartz IV: Starting today, the standard rates will increase: single adults will receive 446 euros per month instead of the previous 432. The partners in the beneficiary communities 401 instead of 389 euros. Young people up to 17 years old receive 373 euros, children from 6 to 13 years old 309 and children up to five years 283 euros.

Minimum salary: Is it increases from 9.35 to 9.50 euros per hour from January. In July there is a new increase to 9.60 euros.

Housing and energy:

Brokerage costs: For about a week, the buyer of a property only has to pay a maximum of half of the intermediation costs. Also, you do not have to transfer your stake until the seller has verified your payment to the broker. So far, the buyer has generally fully assumed the broker’s commission of up to seven percent of the purchase price.

CO2 price: To make fossil fuels more expensive and promote climate-friendly alternatives, there will be a national price of CO2 for transport and heating from 2021. Selling companies such as refineries have to pay 25 euros up front for each ton of CO2 that is produced when diesel and gasoline, heating oil and natural gas are burned. The price is passed on to the customers; According to the federal government, the price per liter of gasoline increases by 7 cents, diesel and heating oil by 7.9 cents and natural gas increases by 0.6 cents per kilowatt hour. In return, citizens elsewhere should be relieved; for example, the surcharge for green electricity, which citizens pay with the price of electricity, is reduced from tax revenues.

Housing benefit: So that low-income people are not burdened by CO2 prices, there will be a so-called CO2 component of the housing benefit starting in January. Expected additional costs for heating must be offset by a surcharge. The amount depends on the size of the household and the income of the household.

Renewable Energy Law: The new version of the EEG, which will be applied by the end of the year, is intended to continue with the recent slow expansion of electricity generation from renewable sources such as wind, sun, water and biomass. Among other things, it facilitates the continued operation of old wind turbines that would actually have run out of funding after 20 years. The goal is also to reduce obstacles to building new or replacing wind and solar power systems.

Health:

Electronic medical record: Electronic patient records will be offered to all members for voluntary use beginning in 2021. For example, you should be able to save findings, X-rays and drug plans. As far as data protection is concerned, a somewhat “reduced” version is foreseen to begin with. Patients can determine what data is included and which doctor can see it. The most accurate access, according to the doctor, only for individual documents will not arrive until 2022.

Ultrasonic: Medically unnecessary ultrasound examinations of unborn babies in the womb, the so-called “baby cinema,” will be banned from 2021. Fetuses must be protected from unnecessary influences.

Change of health insurance: Switching to mandatory health insurance will be easier. All the insured has to do is choose a new health insurance company and sign up to join. The written cancellation of the previous insurance is only necessary if you leave the legal health insurance system, that is, change to private health insurance or move abroad.