German tax assistance rule change to allow unlimited secondary income advice from September
Executive summary: Effective 1 September 2026, German tax assistance associations (Lohnsteuerhilfevereine) may advise individuals with any amount of secondary income, after the former ceiling on auxiliary earnings is removed. The change expands eligibility for professional tax advice to millions of low‑ and middle‑income earners who earn extra income from freelance, gig, or part‑time work, likely improving filing accuracy and increasing demand for association services.
Who is involved: German Federal Ministry of Finance, the Federation of German Tax Assistance Associations (Bundesverband Lohnsteuerhilfevereine), taxpayers with secondary income, and private tax preparation firms such as WISO Steuer and SmartSteuer.
Likely next: Associations will update their admission criteria and inform members by mid‑August 2026; tax authorities will begin monitoring uptake in September; private software providers will assess impact on user bases in their Q4 2026 reports.
Starting September, German Lohnsteuerhilfevereine will be permitted to advise clients regardless of secondary income, after the previous earnings cap is lifted. The measure aims to broaden access to professional tax help for low‑ and middle‑income earners with side jobs. It follows ongoing efforts to simplify tax compliance and reduce reliance on private tax software. The change will take effect on 1 September 2026 and will be monitored by tax authorities and advisory associations.
Timeline
- — Ab September: Lohnsteuerhilfe: Mehr Menschen können künftig profitieren (Handelsblatt)
Analysis — what this means
Likely next events
- By 15 August 2026, German Lohnsteuerhilfevereine must revise their advisory guidelines to reflect the removal of the secondary income ceiling.
- 1 September 2026: the new rule takes effect, allowing associations to accept new clients with any secondary income.
- By 31 October 2026, private tax preparation companies (e.g., WISO Steuer, SmartSteuer) will publish Q3 2026 user statistics showing any shift attributable to the change.
Sectors affected
- Tax advisory services (Lohnsteuerhilfevereine)
- Personal tax preparation software
- German federal tax administration (Finanzämter)
Regulatory implications
- Elimination of the secondary income threshold that previously limited eligibility for advice from Lohnsteuerhilfevereine.