This guide sets out the cost of living in Germany for expats in 2026, from rent and energy to transport and health insurance.
What changed in 2026
Short answer: public transport, health insurance and wages all moved on 1 January 2026, and energy prices have pushed inflation back above 3% this autumn. If you budgeted for Germany using a guide written in 2024 or 2025, several of the numbers below will be out of date. For visas, registration and the wider move, see our complete guide to moving to Germany.
| Cost item | Before | From 1 January 2026 | What is next |
|---|---|---|---|
| Deutschlandticket (nationwide local transport pass) | €58 per month (2025) | €63 per month | €66.80 per month from 1 January 2027, the first price set by the new cost index (decided on 30 September 2026) |
| Average health insurance top-up rate (Zusatzbeitrag) | 2.5% | 2.9% | Individual insurers set their own rate, and many charge more than the average |
| Statutory minimum wage | Lower 2025 rate | €13.90 per hour | €14.60 per hour from 1 January 2027 |
| Mini-job earnings limit | €556 per month | €603 per month | €633 per month in 2027 |
| Basic tax-free allowance (Grundfreibetrag) | Lower 2025 level | €12,348 per person | Indexed annually |
| Child benefit (Kindergeld) | Lower 2025 level | €259 per child per month | Set annually |
| VAT on restaurant food | 19% | 7%, permanently (drinks excluded) | Whether menu prices actually fall is up to restaurants |
| Broadcasting fee (Rundfunkbeitrag) | €18.36 per month | €18.36 per month (unchanged) | The independent commission KEF has recommended €18.64 from 1 January 2027, subject to approval by the federal states |
Correction to older guides: Many cost-of-living articles still quote the Deutschlandticket at €49 or €58. It has cost €63 a month since January 2026, and it rises to €66.80 a month from January 2027 under the new index-linked pricing.
Energy watch: The Federal Statistical Office (Destatis) reported inflation of 3.3% for September 2026, with energy prices up 14.9% year on year while food rose only 0.4%. The energy industry association BDEW noted in August 2026 that recent wholesale price rises had not yet fed fully into household tariffs. If you are signing an energy contract now, assume your bills could rise further.
Rent: the cost that decides your budget
Short answer: rent is the single largest cost for almost every expat in Germany, and it varies by more than double between cities. A 70 m² flat in an existing building in Munich costs more than twice as much to rent as the same flat in Leipzig.
The figures below are average asking rents (Angebotsmieten) for a 70 m² reference flat at the end of 2025, from the ImmoScout24 WohnBarometer. They are cold rent (Kaltmiete), which excludes service charges and heating.
| City | Existing flat, €/m² | 70 m² existing flat, per month | New build, €/m² | 70 m² new build, per month | Change in a year (existing) |
|---|---|---|---|---|---|
| Munich | €19.92 | approx. €1,394 | €26.53 | approx. €1,857 | +3.8% |
| Stuttgart | €15.16 | approx. €1,061 | €17.85 | approx. €1,250 | +5.4% |
| Frankfurt am Main | €14.86 | approx. €1,040 | €18.84 | approx. €1,319 | +5.1% |
| Berlin | €13.13 | approx. €919 | €21.00 | approx. €1,470 | +4.3% |
| Hamburg | €13.11 | approx. €918 | €18.64 | approx. €1,305 | +5.0% |
| Cologne | €13.00 | approx. €910 | €17.99 | approx. €1,259 | +4.9% |
| Düsseldorf | €12.74 | approx. €892 | €18.10 | approx. €1,267 | +4.8% |
| Leipzig | €8.85 | approx. €620 | €13.73 | approx. €961 | +3.7% |
| Germany (national average) | €8.89 | approx. €622 | €13.11 | approx. €918 | +3.7% |
Monthly figures are our calculation (price per m² multiplied by 70) and are rounded.
Three points that most budget articles leave out:
- Asking rents are not what long-standing tenants pay. They reflect new listings, which is exactly the market you will be entering as a newcomer. Expect to pay at or above these averages, not below.
- Smaller flats usually cost more per square metre. If you are a single person looking for a 40 to 50 m² flat, multiplying these averages by your floor area will tend to understate the real price.
- Competition matters as much as price. In Munich, Berlin, Hamburg and Frankfurt, viewings for reasonably priced flats are often heavily oversubscribed. Budget for a period of temporary or furnished accommodation, which usually costs more per month than an unfurnished long-term let.
Our guide to renting in Germany explains deposits, the documents landlords ask for and how rent controls work.
Service charges, energy and household fixed costs
Short answer: on top of cold rent, allow roughly €2 to €3 per m² a month for service charges, plus electricity, the broadcasting fee and internet. Germans call the all-in figure “warm rent” (Warmmiete), and it is the number you should compare between flats.
| Fixed cost | Typical amount | Notes |
|---|---|---|
| Service charges (Nebenkosten / Betriebskosten) | Average €2.28 per m² per month; up to €2.87 per m² if every cost type applies | Tenants’ association Deutscher Mieterbund, based on 2022 bills published in January 2024. Energy costs have risen since, so treat this as a floor. Heating and hot water alone averaged €1.07 per m². |
| Electricity | Average 37.0 cents per kWh in 2026 | BDEW autumn 2026 analysis. A household using 3,500 kWh a year would pay roughly €108 a month at that average price. 2026 prices fell slightly because of a federal subsidy on grid fees. |
| Broadcasting fee (Rundfunkbeitrag) | €18.36 per month per household | Compulsory for every household, whether or not you own a television. One fee covers the whole flat, so flatmates can share it. |
| Internet and mobile | Varies by provider and contract length | Minimum contract terms of 24 months are common; check the notice period before signing. |
Do not compare cold rents alone. A flat advertised at a lower Kaltmiete with high, poorly insulated heating costs can end up more expensive than a slightly dearer, newer flat. Ask the landlord for the most recent service charge statement (Nebenkostenabrechnung) before you sign.
Electricity is usually contracted separately from your rent, while heating is often included in the service charge advance. You may receive a balancing bill once a year if actual consumption exceeds the monthly advance payments.
Transport
Short answer: most expats in German cities can cover all local and regional public transport for €63 a month with the Deutschlandticket. It is valid on buses, trams, underground, suburban and regional trains across the whole country, but not on long-distance trains (ICE, IC and EC).
| Option | Monthly cost | Best for |
|---|---|---|
| Deutschlandticket (subscription) | €63 in 2026 | Daily commuting and weekend regional travel anywhere in Germany |
| Job ticket via employer | €63 or less, depending on employer subsidy | Employees whose employer offers a discount |
| Car ownership | Fuel, insurance, tax, parking and servicing; varies widely | Rural areas and families outside the big cities |
The ticket is sold only as a monthly rolling subscription. When the price rose in January 2026, Deutsche Bahn asked existing subscribers to confirm whether they wanted to continue. A similar process may apply when the price rises to €66.80 in January 2027, so watch for notices from your transport operator.
Tax tip: From 2026, the commuter allowance (Entfernungspauschale) is 38 cents per kilometre from the first kilometre of your journey to work. Before 2026 the first 20 kilometres attracted only 30 cents. This reduces your taxable income, not your ticket price, but it is worth claiming in your tax return.
Health insurance and social contributions
Short answer: if you are employed and in the public system, expect about 8.75% of your gross salary to go on health insurance and a further 1.8% to 2.4% on long-term care insurance, up to an income cap. These are deducted from your payslip, so they affect your take-home pay rather than appearing as a separate bill.
| Health and care item (2026) | Rate or threshold |
|---|---|
| General health insurance rate | 14.6% of gross salary, split equally between employer and employee |
| Average top-up rate (Zusatzbeitrag) | 2.9%, also split equally; individual insurers often charge more |
| Typical employee share (general plus average top-up) | About 8.75% of gross salary |
| Long-term care insurance | 3.6%, of which the employee pays 1.8% |
| Childless surcharge (age 23 and over) | An extra 0.6 percentage points paid by the employee alone |
| Saxony (for example Leipzig and Dresden) | Employees pay 2.3% care contribution, before any childless surcharge |
| Contribution ceiling (Beitragsbemessungsgrenze) | €69,750 a year (€5,812.50 a month); no contributions are charged above this |
| Threshold to opt out into private insurance (Versicherungspflichtgrenze) | €77,400 a year (€6,450 a month), up from €73,800 in 2025 |
| Student rate in public insurance | €87.38 a month, plus top-up and care contributions |
At the contribution ceiling, an employee paying the average top-up rate contributes roughly €509 a month to health insurance, before care insurance. Higher earners above €77,400 can choose private health insurance instead, where premiums depend on age, health and the level of cover rather than on income.
Self-employed expats pay both halves. Freelancers in the public system pay the full contribution themselves, which makes health insurance one of the largest fixed costs for self-employed newcomers. Compare public and private options carefully before you register a business.
Our guide to health insurance for expats in Germany explains how to choose between public and private cover.
Food, groceries and eating out
Short answer: groceries are one of the more affordable parts of German life, and food prices have barely risen in 2026. Food inflation was only 0.4% in September 2026, compared with 14.9% for energy.
According to the Federal Statistical Office (Destatis) household budget survey, the average German household spent about €457 a month on food, drinks and tobacco in 2024. That figure covers all household types, from single people to large families, and excludes restaurants, cafés and canteens.
| Spending item | Figure | Source and context |
|---|---|---|
| Food, drinks and tobacco, average household | About €457 per month | Destatis household budget survey (LWR) 2024, all household types |
| Housing, energy and home maintenance, average household | About €1,181 per month | Destatis LWR 2024 |
| Total consumer spending, average household | About €3,257 per month | Destatis LWR 2024 |
| Restaurant food VAT | 7% from 2026 (drinks remain at 19%) | Federal tax changes for 2026 |
Discount supermarkets such as Aldi, Lidl, Netto and Penny keep basic grocery prices competitive, while organic shops and city-centre supermarkets cost noticeably more. Most supermarkets are closed on Sundays, which surprises many new arrivals.
Lower VAT does not guarantee cheaper meals. The permanent cut to 7% VAT on restaurant food from 2026 gives restaurants room to lower prices, but it does not oblige them to. Do not assume eating out will be cheaper than in 2025.
Sample monthly budgets by city
Short answer: a single person renting a 45 m² flat should budget roughly €630 a month in Leipzig, €820 in Berlin and €1,130 in Munich for housing, energy, the broadcasting fee and transport alone, before food and personal spending.
These budgets are built only from the verified figures in this guide. They exclude groceries, internet and mobile, insurance beyond payroll deductions, clothing, leisure and childcare. Treat them as a minimum for fixed costs, not a full living budget.
Single person, 45 m² existing flat
| Monthly item | Leipzig | Berlin | Munich |
|---|---|---|---|
| Cold rent (45 m² at end-2025 average asking rent) | approx. €398 | approx. €591 | approx. €896 |
| Service charges (45 m² at €2.28 per m²) | approx. €103 | approx. €103 | approx. €103 |
| Electricity (assumes 1,500 kWh a year at 37.0 cents) | approx. €46 | approx. €46 | approx. €46 |
| Broadcasting fee | €18.36 | €18.36 | €18.36 |
| Deutschlandticket | €63 | €63 | €63 |
| Fixed costs total | approx. €628 | approx. €821 | approx. €1,126 |
Couple or small family, 70 m² existing flat
| Monthly item | Leipzig | Berlin | Munich |
|---|---|---|---|
| Cold rent (70 m²) | approx. €620 | approx. €919 | approx. €1,394 |
| Service charges (70 m² at €2.28 per m²) | approx. €160 | approx. €160 | approx. €160 |
| Electricity (3,500 kWh a year at 37.0 cents) | approx. €108 | approx. €108 | approx. €108 |
| Broadcasting fee (one per household) | €18.36 | €18.36 | €18.36 |
| Two Deutschlandtickets | €126 | €126 | €126 |
| Fixed costs total | approx. €1,032 | approx. €1,331 | approx. €1,806 |
Add the household average for food, drinks and tobacco of about €457 a month (Destatis, 2024) for a couple or family as a starting point, and adjust for your own habits. The electricity consumption figures are our working assumptions, not official averages for those household sizes.
Caveat: Service charge figures are based on 2022 bills and energy prices have moved since, and asking rents rose by 3.7% to 5.4% across these cities in the year to the end of 2025. Build a margin of at least 10% into any budget you use for a visa application or salary negotiation.
For one-off costs such as removals, deposits and the first months of temporary housing, see how much it costs to move to Germany.
Tax allowances and family support that offset costs
Short answer: the 2026 tax-free allowance is €12,348 per person, and parents receive €259 a month in child benefit per child. These do not reduce your bills directly, but they affect how much of your salary you keep.
| Allowance or benefit (2026) | Amount |
|---|---|
| Basic tax-free allowance | €12,348 (€24,696 for jointly assessed couples) |
| 42% income tax rate starts at | €69,879 of taxable income |
| 45% top rate starts at | €277,826 of taxable income |
| Child benefit (Kindergeld) | €259 per child per month |
| Combined child allowances (tax route) | €9,756 per child per year |
| Commuter allowance | 38 cents per km from the first km |
Income tax, the solidarity surcharge (now paid only by higher earners) and, if you are a member of a registered church, church tax are deducted from your salary along with social contributions. Our guide to taxes for expats living in Germany explains tax classes and what you can reclaim.
Students and Opportunity Card applicants: Many visa routes require proof of funds, often via a blocked account (Sperrkonto). The amount generally quoted for students in 2026 is €992 a month (€11,904 a year), and some routes, such as the Opportunity Card, require more. Confirm the current requirement with the German embassy or consulate handling your application before transferring money.
Is Germany expensive compared with what you expect?
Short answer: Germany is moderately priced for Western Europe outside its most expensive cities, but Munich, Frankfurt and Stuttgart have housing costs well above the national average for newcomers. The honest picture has three parts:
- Housing is the real problem, not everyday goods. Groceries and public transport are good value. Finding an affordable flat in a major city, quickly, is the hardest part of the budget.
- Payroll deductions are high. Between income tax, health, care, pension and unemployment insurance, a large share of a gross salary does not reach your account. Compare job offers on net pay, not gross.
- Energy costs are volatile. 2026 started with slightly lower electricity prices, but energy inflation has climbed sharply since the summer.
If you are still choosing where to settle, our guide to the best places to live in Germany compares cities on cost as well as jobs and lifestyle. The ExpatListing Germany directory lists housing, insurance and tax professionals who work with newcomers.
Frequently asked questions
