Optimize your exemption order: Secure your saver's allowance

An exemption order exempts capital gains up to the saver's allowance of 1,000 euros (single filers) or 2,000 euros (jointly taxed couples) from capital gains tax. If you want to optimize your exemption order, distribute this allowance strategically to where the highest interest, dividends and capital gains accrue. Without an order, the bank retains 25 percent plus solidarity surcharge and forwards the amount to the tax office.

What is an exemption order?

The exemption order is a request to a German credit institution to exempt your capital gains up to a certain amount from tax. The legal basis is the saver's allowance under § 20 para. 9 EStG, often also called saver's exemption. If you do not issue an order, your bank automatically deducts capital gains tax.

Which income falls under this?

Eligible income includes interest from savings and fixed-term deposits, dividends from stocks, distributions from funds and ETFs, and realized capital gains. The advance allocation on accumulating ETFs is also covered by the exemption order.

The saver's allowance in detail

Since January 1, 2023, a higher saver's allowance applies. The 801 euros became 1,000 euros for single filers, and the 1,602 euros became 2,000 euros for married couples. These values remain unchanged in 2026.

How does an exemption order work?

Within your allowance, the bank pays out your earnings in full. Only above this does capital gains tax apply. The bank reports the capital gains actually exempted via your tax ID to the Federal Central Tax Office.

Rate of capital gains tax

Above the allowance, 25 percent capital gains tax plus 5.5 percent solidarity surcharge apply, effectively 26.375 percent. For church members, the tax burden is slightly reduced because church tax is considered a special expense.

Why the tax ID is mandatory

Without providing your tax identification number, the bank cannot process the order. The tax identification number has been mandatory since 2011. If it is missing, the credit institution must deduct tax even though an order is in place.

How to issue the exemption order

Most credit institutions provide a form in online banking. You enter the desired amount, confirm your tax identification number, and set the term. The order can be issued for a fixed period or indefinitely, that is, until revoked.

Information you need

• Your valid tax ID for both account holders in case of joint investment
• The amount to be exempted per institution
• Information on church tax liability for correct taxation

After submission, the exemption usually applies retroactively to the beginning of the year if the order is issued in the current year.

Distribute exemption order across multiple banks

If you spread your financial assets across multiple accounts and depots, you must strategically split the allowance. An exemption order across multiple banks is explicitly permitted: you may split the saver's allowance among any number of institutions.

The decisive rule for distribution

The total of all issued orders may not exceed the saver's allowance. If you deposit 700 euros at the direct bank and 300 euros at the savings bank, you have fully exhausted the 1,000-euro allowance. The Federal Finance Office monitors this rule centrally.

How to correctly distribute your exemption order

Place the allowance where the highest returns are expected. A savings account with high interest income or a depot with dividend stocks deserve a larger share than a rarely used secondary account. A practical allocation for 1,000 euros looks like this:

• ETF depot with dividends and distributions: 600 euros
• Savings account with ongoing interest: 250 euros
• Fund savings plan: 150 euros

This prevents income from being unnecessarily taxed while allowance remains unused elsewhere.

Distribute saver's allowance and align your depot for tax purposes

When distributing the saver's allowance, the goal is to make the entire allowance work for you. Tax optimization of your depot begins with a realistic estimate of your expected capital gains per investment.

Estimate returns realistically

Calculate what interest your fixed-term deposit will generate over its term and what dividends your stocks will provide. Based on this, plan the distribution. If your investment changes, adjust your order.

Stay organized

Keep a list of all exemption orders you have issued. This overview protects you from losing track and accidentally distributing more than the permitted amount. A quick look at each bank's annual tax certificate shows how much of the allowance was actually used.

Optimize exemption order before year-end

Unused saver's allowance expires at the end of the year. It cannot be carried over to the following year. Therefore, an annual review is worthwhile, ideally in November or December.

Exhaust unused allowance

If allowance remains, you can strategically realize capital gains. Sell stocks or ETFs at a profit and buy them back after a suitable interval. This way you use the allowance without fundamentally changing your investment. Pay attention to transaction costs and sufficient time before repurchase.

Final deadline of the year

Changes are possible at any time during the year, but usually not retroactively. The last banking day, often December 28 or 29, is usually the final deadline to achieve effect for the current year.

Can I change or revoke my exemption order online?

Yes. Through online banking, you can adjust the amount at any time during the year or revoke the order completely. A revocation takes effect from the time of the change, not for income already settled.

How high should you set the amount?

Set the amount so that it covers your expected capital gains at that institution without exceeding the overall limit. Set too low, you waste allowance. Distributed too high, you risk exceeding the limit.

Exemption order exceeded: What happens then?

If multiple banks together report more exempted capital gains than your saver's allowance permits, the excess will be detected by the Federal Central Tax Office. § 45d EStG requires credit institutions to make this report.

Correction through tax return

Correct excess tax-exempt gains through your income tax return. The tax office will demand payment of capital gains tax that was wrongly not paid. Conversely, if you paid too much tax because an order was missing, you reclaim the money through Schedule KAP.

No exemption order issued: the consequences

About 16 percent of savers in Germany, one in six, issue no exemption order according to a survey cited by n-tv. They lose money because the bank automatically forwards capital gains tax.

Get your money back

If you overpaid in previous years, recover the capital gains tax through Schedule KAP of your tax return. Maximum annual savings are around 263.75 euros per person and about 527.50 euros for couples.

Can an exemption order be changed retroactively?

For the current year, an exemption issued in January usually applies retroactively to the beginning of the year. However, a completed previous year cannot be corrected via the order.

Can the order be issued for the past year?

No. An order cannot be issued retroactively for a past year. The only way to get a refund after the fact is through your income tax return and Schedule KAP.

Issue exemption order for children

Children with their own depot or savings account also have a claim to the full saver's allowance. Issue the order in the child's name with their tax identification number.

Observe the family insurance limit

Starting at approximately 5,460 euros in capital gains, the fee-free family insurance in public health insurance can be at risk. Check this limit carefully if the child has significant capital assets.

Certificate of non-assessment instead of exemption order

For individuals with very low income, a certificate of non-assessment may be more advantageous than an exemption order. It exempts capital gains beyond the saver's allowance.

When the certificate of non-assessment is worthwhile

If your income is below the basic exemption of 11,784 euros (as of 2026), apply for the certificate of non-assessment from the tax office. Children, students and pensioners with low income benefit because earnings are paid out completely without tax deduction.

Favorable assessment: If your marginal tax rate is below 25 percent

If your personal marginal tax rate is below 25 percent, request a favorable assessment through Schedule KAP. The tax office will then tax your capital gains at the lower individual rate instead of the flat capital gains tax.

Exemption order at multiple credit institutions: Special cases

Not every provider accepts an exemption order. Brokers without a German seat do not process exemptions; you report the income yourself in your tax return.

Accumulating ETFs and advance allocation

With accumulating ETFs, there is no distribution; tax arises only upon sale. However, an annual advance allocation is calculated from base rate times fund value. An existing exemption order covers this allocation.

Married couples and joint allowance

Married couples issue a joint order for 2,000 euros, regardless of who generates the income. An order for 0 euros can enable loss offset between spouses, for example when one partner's capital losses are offset against the other's gains.

Calculate exemption order: a simple approach

For keeping finances in order, a three-step approach works well. It ensures that no allowance expires and no excess occurs.

1. List all depots and accounts and estimate expected capital gains per investment.
2. Allocate the saver's allowance proportionally, directing larger amounts to high-yield institutions.
3. At year-end, check utilization and if necessary rebalance or realize gains.

This brief overview does not replace tax advice but provides reliable guidance in practice.

Common mistakes in depot tax optimization

Many investors set up the order once and never adjust it, even though accounts and returns have long since changed. Others deposit the entire allowance at their home bank while the broker's high gains remain untaxed.

These points deserve regular attention

• Outdated amounts no longer matching your current investment
• Missing tax ID, rendering the entire order ineffective
• Overlooked interest on a newly opened savings account
• Duplicate distribution without overview of the total

Optimize exemption order: key figures

For reference, here are the central values for 2026 at a glance:

• Saver's allowance single filers: 1,000 euros per year
• Saver's allowance couples: 2,000 euros per year
• Capital gains tax: 25 percent plus 5.5 percent solidarity surcharge
• Effective burden: around 26.375 percent above the allowance
• Maximum savings: up to 263.75 euros per person

Those who know these figures and consistently use the saver's exemption get the maximum tax-free income from their capital assets. A well-maintained exemption order across all credit institutions is the simplest tool for this.

Summary for your practice

Check once a year whether your allowance flows to where interest and dividends are highest. Keep the distribution in writing and adjust your order whenever you make a significant change to your investment. This ensures your capital gains remain tax-free up to the saver's allowance, and the tax office only sees what is left over.