Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Saver's allowance (Sparer-Pauschbetrag)
Investment income up to 1.000 € a year stays tax-free, up to 2.000 € for jointly assessed spouses.
In plain language
The first 1.000 € of interest, dividends and price gains in a year is tax-free — 2.000 € for jointly assessed couples. For the bank to take that into account you need an exemption order (Freistellungsauftrag); without one it deducts tax from the first euro. If you have accounts at several banks you can split the amount — but hand out no more than 1.000 € in total. Whatever you do not use in a year is lost.
In detail
§ 20 (9) sentence 1 EStG deducts 1.000 € as income-related expenses when investment income is determined; jointly assessed spouses receive 2.000 € together (sentence 2). The allowance can reduce investment income to zero at most, not below. In withholding it takes effect only through an exemption order (§ 44a (1) and (2) EStG). If too much was withheld — because the order was missing or unhelpfully spread across banks — the tax can be reclaimed through schedule KAP of the income tax return. For a fund's Vorabpauschale, the allowance of the year in which it is deemed received counts.
Worked example
1.200 € of interest in a year: for a single person 200 € remains taxable, attracting 50,00 € of Abgeltungsteuer and 2,75 € of solidarity surcharge — 52,75 € in all. A jointly assessed couple with the same 1.200 € pays 0,00 €, because the joint allowance of 2.000 € is not used up.
In brief
It is deducted from investment income before the Abgeltungsteuer is calculated — at the bank only with an exemption order.
Legal basis: § 20 (9), § 44a EStG · as at 2026