Bürgergeld (Citizens Income) replaced the old ALG II (Hartz IV) system on 1 January 2023. It guarantees a minimum income for employable individuals who cannot support themselves financially. Our Citizens Income Calculator gives you an instant estimate — this article explains the calculation in detail.
What is Bürgergeld?
Bürgergeld is a means-tested benefit under Germany's Social Code Book II (SGB II). It is available to people between 15 and 65 who are able to work but cannot meet their basic needs from their own resources. It covers:
- Standard needs allowance (Regelbedarf)
- Housing and heating costs (Kosten der Unterkunft, KdU)
- Additional needs (e.g. for single parents, pregnant women, people with disabilities)
Bürgergeld 2026: Standard Rates
Standard need rates are adjusted annually. For 2026:
| Rate Level | Person Group | Amount / Month |
|---|---|---|
| RS 1 | Single adult / single parent | €563 |
| RS 2 | Each adult in a couple (joint household) | €506 |
| RS 4 | Young people aged 14–17 | €471 |
| RS 5 | Children aged 6–13 | €390 |
| RS 6 | Children aged 0–5 | €357 |
Example: A family of four (couple + child aged 8 + child aged 3) has standard needs of 506 + 506 + 390 + 357 = €1,759 per month.
Housing and Heating Costs (KdU)
In addition to the standard allowance, the Jobcenter covers housing and heating costs (§ 22 SGB II):
- During the grace period (first 12 months): Actual housing costs are fully covered regardless of apartment size.
- After the grace period: Only "appropriate" costs are covered, based on local benchmarks set by the Jobcenter.
Total housing costs = cold rent + service charges + heating costs. Enter them separately in the calculator for the most accurate result.
Income Exemptions
Not all income is counted against your Bürgergeld entitlement. The law provides exemptions to make work worthwhile (§ 11b SGB II):
| Income Range | Exemption |
|---|---|
| Up to €100 | 100% exempt |
| €101 – €1,000 | 20% of income in this range |
| €1,001 – €1,200 (no children) / up to €1,500 (with children) | 10% of income in this range |
Example: Net income €800:
Exemption = 100 + (800 − 100) × 0.20 = 100 + 140 = €240
Countable income = 800 − 240 = €560
Use our Citizens Income Calculator for an instant estimate. You can also use our Salary Calculator to find your net income first.
Asset Limits
Bürgergeld is only available if your assets stay below certain thresholds (§ 12 SGB II):
- Grace period (first 12 months): €40,000 per person in the household — €40,000 for singles, €80,000 for couples.
- From month 13 onwards: €15,000 per person in the household.
Certain assets are protected regardless (e.g. owner-occupied home, pension savings up to specified limits).
The Grace Period (Karenzzeit): First 12 Months
The Karenzzeit was introduced with the 2023 Bürgergeld reform. During the first 12 months:
- Higher asset exemption: €40,000 per person instead of €15,000.
- Actual housing costs accepted: The Jobcenter covers real rent even if it exceeds local benchmarks.
After the grace period, you may need to move to cheaper accommodation if your rent is deemed excessive.
The Bürgergeld Calculation Formula
Your monthly entitlement is:
Bürgergeld = max(0, Total Need − Countable Income)
where:
Total Need = Standard Needs + Housing & Heating Costs Countable Income = Net Income − Exemptions
If your assets exceed the exemption threshold, you must spend them down before receiving Bürgergeld.
Bürgergeld vs. Wohngeld (Housing Allowance)
These are two distinct benefits:
- Bürgergeld covers full subsistence (living costs + housing) for employable people in need.
- Wohngeld is a pure rent subsidy for low-income households who are not receiving Bürgergeld.
Bürgergeld recipients generally cannot receive Wohngeld at the same time. Use our Housing Allowance Calculator to check Wohngeld eligibility.
Impact of Inflation
Standard rates are adjusted annually but do not automatically track consumer price inflation. Use our Inflation Calculator to see how purchasing power changes over time.
How to Apply for Bürgergeld
- Submit an application at your local Jobcenter (in person or online at bürgergeld.org).
- Provide supporting documents: income statements, bank statements, rental contract, ID.
- Agree on a cooperation plan (Kooperationsplan) for job search activities.
- Receive the decision letter — entitlement can be backdated to the application date.
Summary
Bürgergeld provides a safety net for those who need it, with the grace-period rules offering a gentler transition into benefit receipt. The income exemptions make part-time work and side income more worthwhile than under the old Hartz IV system. Use our Citizens Income Calculator for a quick estimate — and contact the Jobcenter or a social advice centre for binding guidance.