Have you seen the latest tax plans for 2027? 💶 Despite promises to relieve low and middle incomes, the government’s draft from September 2 raises the basic tax-free allowance to €12,564 and slightly flattens the progressive tax bracket up to €70,600—but in practice, this delivers minimal real savings. The top tax rate of 42% will apply starting in 2027 at €70,600, after already kicking in at €69,879 in 2026. Those earning more will pay even more: the solidarity surcharge of 45% will now begin at €250,000, and incomes above €280,000 will be taxed at 47%. Reiner Holznagel of the Federation of Taxpayers rightly points out that cold progression isn’t even being offset. A concrete example illustrates the issue well: A single person with a taxable income of €30,000 who receives a €3,000 salary increase keeps only €2,140 net. At an income of €90,000, €3,780 of a €9,000 raise goes directly to the state, leaving just €5,220. Other countries, like the U.S., automatically adjust tax brackets and allowances for inflation so that salary increases aren’t eroded behind the scenes. Unfortunately, here in Germany, we’re still waiting in vain for such indexing 📊.