Citizen's Allowance Calculator

Citizen's allowance is the state basic income support for employable people who cannot cover their living expenses from their own income or assets. Since 01.01.2023 it has replaced the former unemployment benefit II (Hartz IV).

Citizen's allowance consists of:

• the monthly standard rate
• housing and heating costs
• health and long-term care insurance
• any additional needs (e.g. for single parents)

Yes, in principle it does – but not without limits.

• Grace period (first year): the actual rent and heating costs are covered, even if they are higher than usual.
• After the grace period: only reasonable housing costs are covered.

What counts as "reasonable" is decided by the Jobcenter based on local reference values.

No, not in full.

• ❌ Loan principal repayments are never covered.
• ✅ Interest payments can be covered if all conditions are met: you live in the property yourself, the house or flat is considered reasonable, and the interest is treated as housing costs.

Important:

• Citizen's allowance is meant to secure basic subsistence, not to build wealth.
• No principal repayments are covered, even during the initial grace period.
• There is no support for rented‑out investment properties.

In short: your housing is protected – your property is not financed.

Yes. If you are entitled to citizen's allowance, the Jobcenter pays the full contributions to statutory health and long-term care insurance.

Your income is not fully deducted. There are income allowances:

• €100 basic allowance
• 20% of income between €100 and €520
• 30% of income between €520 and €1,000
• 10% of income between €1,000 and €1,200 (up to €1,500 for households with children)

The following is counted as income:

• for employees: net income
• for self-employed people: profit after social security contributions

In general:

• €15,000 per person

During the grace period (first year):

• €40,000 for a single person
• plus €15,000 for each additional person in the household

Assets below these limits are not taken into account. Changes are planned for 2026 but are not yet in force.

Yes, under certain conditions.

• Missed appointment: 10% reduction of the standard rate for one month
• Breaches of obligations (e.g. missing application proofs): 1st violation: 10%, 2nd violation: 20%, from the 3rd violation: 30%
• Refusal to work: the standard rate can be reduced to €0; rent, heating and health insurance continue to be covered

Overall, the standard rate may not be reduced by more than 30%.

No. This calculator only provides a non-binding estimate. The final decision on entitlement and exact amount is always made by the responsible Jobcenter.