der  Freibetrag

B2

Estimated CEFR level.

/ˈfʁaɪ̯bəˌtʁaːk/

💰 What does "der Freibetrag" mean?

Der Freibetrag refers to an amount of money that is not taken into account when calculating certain benefits or taxes. It's an amount that remains "free" (frei), usually from taxes or levies.

Imagine you have an income, but a part of it is tax-free up to a certain limit – this tax-free part is the Freibetrag. If your income exceeds this amount, only the portion above it needs to be taxed.

Typical examples include:

• The basic personal allowance (Grundfreibetrag) in income tax.
• The saver's lump sum (Sparer-Pauschbetrag) for capital gains.
• Allowances (Freibeträge) in inheritance or gift tax.
• Allowances (Freibeträge) for social benefits (e.g., student loans like BAföG or unemployment benefits like Bürgergeld).

⚠️ Important: A Freibetrag is not the same as a Freigrenze (exemption limit/threshold). With a Freigrenze, the entire amount becomes taxable if the limit is exceeded, even slightly. With a Freibetrag, the amount up to the allowance always remains tax-free (or disregarded for calculation).

Article rules for der, die, and das

🧐 Grammar: "Der Freibetrag" in Detail

The word "Freibetrag" is a masculine noun. The article is der.

It follows the strong declension pattern. Here are the declension tables:

Example Sentences

1. Der jährliche Grundfreibetrag sichert das Existenzminimum.
   (The annual basic personal allowance secures the subsistence level.)
2. Die Höhe des Freibetrags hängt von verschiedenen Faktoren ab.
   (The amount of the allowance depends on various factors.)
3. Mit dem Freibetrag können Sparer Steuern sparen.
   (With the allowance, savers can save taxes.)
4. Das Finanzamt berücksichtigt den Freibetrag automatisch.
   (The tax office automatically takes the allowance into account.)
5. Es gibt verschiedene Freibeträge für unterschiedliche Lebenssituationen.
   (There are various allowances for different life situations.)

💡 When to use "der Freibetrag"?

The term Freibetrag is mainly used in the following contexts:

• Tax Law (Steuerrecht): This is where it's most common (income tax, inheritance tax, trade tax, etc.). It reduces the tax burden.
• Social Law (Sozialrecht): For social benefits like BAföG, housing benefit (Wohngeld), or citizen's benefit (Bürgergeld), there are allowances (Freibeträge) on income or assets so that not every extra euro earned leads to a reduction in benefits.
• Business & Finance (Wirtschaft & Finanzen): In general language for amounts that can be deducted from a calculation base.

Distinction from Freigrenze: As mentioned before, the distinction from Freigrenze (threshold) is crucial. Example: A Freibetrag of €100 means that out of an amount of €150, only €50 is relevant (150 - 100). A Freigrenze of €100 means that with €150, the entire amount of €150 becomes relevant because the threshold was exceeded.

Often, specific types of allowances are mentioned, e.g., Kinderfreibetrag (child allowance), Sparerfreibetrag (saver's allowance - actually Sparer-Pauschbetrag), Erbschaftsteuerfreibetrag (inheritance tax allowance).

🧠 Mnemonics to Remember

Remembering the article: Think of DER Betrag (the amount) that stays frei (free). Betrag is masculine, so it's der Freibetrag.

Remembering the meaning: Imagine a certain amount (Betrag) of money is frei (free) like a bird 🐦 and flies away before taxes can catch it. This 'free amount' is the Freibetrag (allowance/exemption).

🔄 Similar and Opposite Terms

Risk of Confusion:

• Freigrenze: As explained above, a threshold which, if exceeded, makes the entire amount relevant (e.g., taxable). 🚨 Be careful, the difference is important!

😂 A Little Joke

German: Fragt das Finanzamt den Steuerzahler: "Haben Sie Hobbys?" Steuerzahler: "Ja, Steuern sparen!" Finanzamt: "Sehr gut, dann kennen Sie ja sicher den Freibetrag für dieses Hobby?" 😉

English: The tax office asks the taxpayer: "Do you have any hobbies?" Taxpayer: "Yes, saving taxes!" Tax office: "Very good, then you surely know the allowance (Freibetrag) for that hobby?" 😉

📜 Poem about the Freibetrag

German:
Ein Betrag, so wunderbar,
Macht die Steuerlast oft klar.
Er ist vom Staat dir zugedacht,
Hat schon vielen Freud' gebracht.
Ob Sparer, Kind, ob Erbesglück,
Der Freibetrag, er schmälert's Stück,
Das sonst dem Fiskus anvertraut.
Drum sei er stets gut angeschaut!

English:
An amount, quite wonderful,
Often makes the tax load dull.
It's granted by the state to you,
Brought joy to many, it is true.
For savers, children, heirs so grand,
The allowance reduces the demand,
That otherwise to treasury flows.
So watch it well, as finance goes!

🧩 Little Riddle

German:
Ich bin ein Betrag, doch zähl' nicht ganz,
Im Steuerrecht hab ich meinen Glanz.
Ich mindere die Last, die dich sonst drückt,
Bin oft pauschal, mal individuell bestückt.
Ich bin nicht die Grenze, die alles kippt,
Sondern ein Teil, der steuerfrei wippt.

Wer bin ich?
(Auflösung: Der Freibetrag)

English:
I am an amount, but don't count in full,
In tax law, I have my pull.
I lessen the burden that weighs you down,
Often a lump sum, or tailored around.
I'm not the threshold that flips the whole scene,
But a part that bounces, tax-free and keen.

What am I?
(Answer: Der Freibetrag / The allowance)

✨ Other Information

Word Composition (Wortzusammensetzung):

The word "Freibetrag" is a compound noun, composed of:

• frei: Adjective, meaning "free", "exempt from" here.
• der Betrag: Noun, meaning "amount", "sum of money".

So, together it means: An amount of money that is free from something (usually taxes or inclusion in calculations).

Trivia: The level of various allowances (Freibeträge) is often a subject of political debate in Germany and is regularly adjusted, usually as part of tax reforms or adjustments for inflation.