German Finance Minister Christian Lindner has announced a comprehensive tax relief package set to benefit millions of citizens starting 2025. The plan includes raising the basic tax-free allowance to €12,084 and increasing child benefits to €255 per month.

Lindner also aims to adjust income tax brackets to counter 'cold progression,' potentially saving taxpayers billions.

The reform extends to married couples, with plans to replace tax classes 3 and 5 with a more equitable system.

These measures, requiring approval from both the cabinet and state governments, are estimated to provide relief totaling €23 billion over 2025 and 2026.