Change in the wage tax deduction procedure from January 1, 2026 for employees insured in private health and long-term care insurance
From January 1, 2026, there will be a fundamental change in the wage tax deduction procedure.
Who is affected?
Employees, civil servants and judges who have private health and long-term care insurance, as well as pension recipients and civil servants who are entitled to free military welfare. Policyholders of a solidarity association recognized under § 176 SGB V and civil servants who are insured through the Postbeamtenkrankenkasse or the Krankenversorgung der Bundesbahnbeamten should contact their insurance provider to find out whether they are participating in the procedure, as participation is voluntary for them.
What will change?
From January 1, 2026, contributions for private health and long-term care insurance will already be taken into account in the wage tax deduction procedure. The previous regulation, under which the insured person could submit the paper certificate issued by their insurance company for consideration by the employer or the minimum pension lump sum was taken into account instead, will no longer apply. The persons concerned will be or have been informed by their insurance companies of the data transfer by letter and informed of the possibility of objecting to the data transfer. In the event of an objection, no contributions to private health and long-term care insurance will be taken into account in the income tax deduction procedure. In such cases, it is also not possible to take the contributions into account by applying for a wage tax reduction. In the event of an objection, the contributions can only be taken into account as part of the income tax assessment after the tax return has been submitted. Further information regarding the exchange of data between private health insurance and private compulsory long-term care insurance companies, the tax authorities and employers as part of the wage tax deduction procedure from January 1, 2026 can be found at BZSt - ELStAM.