The AfD Won 43.8%. Should You Worry About Your Salary, Taxes or Pension?
The AfD clearly won the Saxony-Anhalt election, but it has not formed a government. Here is what could actually change for your taxes, housing, job, pension and investments — and what a state election cannot change overnight.
- The AfD clearly won the Saxony-Anhalt election, but it has not formed a government.
- Here is what could actually change for your taxes, housing, job, pension and investments — and what a state election cannot change overnight.
The AfD has achieved a historic election victory in Saxony-Anhalt.
With 43.8% of the vote and 39 of the state parliament's 83 seats, it has become by far the largest political force in the state.
Since then, headlines have focused on immigration, businesses, taxes, pensions and Germany's economic future.
But if you simply work, pay taxes, save or invest in Germany, you probably have a much more practical question:
Could this affect my money?
The short answer is reassuring: almost nothing changes automatically in your personal finances today.
The longer answer is much more interesting.
The important part in 30 seconds
- The AfD clearly won the election but did not secure an absolute majority. It has 39 seats and would need 42 to govern alone.
- It is still unclear who will ultimately govern Saxony-Anhalt and which parts of any party manifesto could actually become law.
- A state election cannot by itself rewrite your income tax, statutory pension, statutory health insurance or ECB interest rates.
- The state does have meaningful powers over areas including its budget, education, certain family policies, housing and property-transfer tax.
- Economically, one of the biggest questions is what happens to investment, employment and international workers.
What actually happened?
The result was decisive.
The AfD received 43.8% of the vote and won 39 seats. The CDU finished far behind, significantly changing the balance of power in the state parliament.
But there is an important difference between:
winning an election
and
being able to implement your programme.
An absolute majority requires 42 of the parliament's 83 seats.
The AfD has 39.
It would therefore need support from other lawmakers or parties to form a government with a parliamentary majority.
Government formation remains open, and the coming negotiations will be decisive.
For your finances, the first important fact is therefore also the simplest:
An election result does not automatically turn an election manifesto into law.
What does NOT change tomorrow
Germany is a federal country.
The Länder have important responsibilities, but many of the rules that directly affect household finances are primarily decided at federal level.
A government in Saxony-Anhalt cannot simply decide on its own to change:
- your income tax;
- the national statutory pension system;
- the general rules of statutory health insurance;
- German labour law as a whole;
- the euro;
- European Central Bank interest rates.
State governments can influence federal legislation through the Bundesrat and participate in certain national reforms.
But that is very different from being able to change your pension, tax class or health insurance unilaterally.
So if you had a salary, an ETF, a private pension or a bank account yesterday, its basic structure did not change this morning because of the election result.
Where your wallet really could be affected: buying a home
One of the most concrete financial proposals in the AfD's Saxony-Anhalt manifesto concerns the Grunderwerbsteuer, Germany's property-transfer tax.
The current rate in Saxony-Anhalt is 5%.
The AfD proposes reducing it to:
2.5%.
And this is an area where German states genuinely have the power to determine the tax rate.
What would that mean?
For a €300,000 property:
- at 5%: €15,000
- at 2.5%: €7,500
Difference: €7,500
For a €400,000 home, the difference would be €10,000.
If you are planning to buy property in Saxony-Anhalt, a reduction of that size would have a real financial impact.
But there is an important distinction:
today, it is still an election proposal.
Do not calculate a future home purchase using the 2.5% rate as if it had already been approved.
Families are also at the centre of the programme
The manifesto contains several proposals that could directly affect certain households.
These include:
- a €2,000 welcome payment for each of the first two children and €4,000 for subsequent children;
- a state *Familiengeld* of €50 per month for the first child, €150 for the second and €250 for each subsequent child;
- free childcare from the first child;
- free meals in childcare and schools;
- subsidised home loans of up to €300,000 for certain young families buying or building a home;
- partial loan forgiveness for children born afterwards.
Some of these proposals also contain specific citizenship and residence requirements.
For example, the manifesto links certain family benefits to at least one parent holding German citizenship as well as residence requirements in Saxony-Anhalt.
That distinction matters particularly for AORAES' international audience.
And there is an important financial-planning rule here:
Do not turn a campaign promise into income in your financial plan.
Until there is legislation, a budget and final eligibility criteria, that money is not available to spend.
The more important economic issue may be the labour market
This is probably where the story becomes most important for Saxony-Anhalt's longer-term economy.
The state faces a demographic challenge.
Over the coming years, significantly more workers are expected to leave the labour market through retirement than young workers entering it.
At the same time, international professionals are already becoming increasingly important to the regional economy.
The Federal Employment Agency estimates that the number of foreign employees subject to social-security contributions increased from around 20,260 to 75,300 over ten years.
Another Federal Employment Agency analysis shows that roughly 22.7% of businesses in Saxony-Anhalt employ at least one foreign worker.
And despite a weak economy and relatively high unemployment, the state currently has 22 occupational groups experiencing skilled-worker shortages.
In other words:
Germany can have unemployment and still urgently need certain professionals.
So can Saxony-Anhalt.
Why does this matter after the election?
The AfD manifesto argues that immigration should not be the primary solution to Germany's *Fachkräftemangel*, or skilled-worker shortage, and places greater emphasis on training people already in the country, while also allowing for selected immigration of qualified professionals.
The Federal Employment Agency, on the other hand, considers immigration and the integration of foreign workers an important part of responding to the ageing regional labour market.
That creates a genuine economic tension.
If a region struggles to attract or retain professionals, some companies may find it more difficult to fill vacancies.
That could mean:
- less capacity for businesses to grow;
- delayed investment;
- staff shortages;
- greater pressure on essential sectors;
- lower tax and social-security revenues if employment weakens.
But there can also be an opposite effect for certain workers.
When a skill becomes scarce, the person who has it may gain:
more alternatives and stronger negotiating power.
That is why there is no simple answer such as:
“The AfD victory will be good or bad for salaries.”
It will depend on which policies are actually implemented and how companies and workers respond.
If you are an international professional in Germany
The result may create concerns that go beyond money.
Will I still have the same opportunities?
Could my employment situation change?
Should I worry about my residence status?
It is useful to separate political debate from immediate legal effects.
A state election does not automatically cancel:
- a valid employment contract;
- a valid residence permit;
- your salary;
- your employment rights;
- your health insurance;
- your pension contributions;
- your investments.
Many of these areas are governed by federal legislation, Germany's constitution and, in some cases, European law.
That does not make state politics irrelevant.
A state government can influence education, administration, integration, public spending, policing, institutional priorities and how attractive a region feels as a place to live or invest.
But between a political proposal and an actual change to your legal rights stand laws, courts, institutions and procedures.
Should you change your investments?
A state election result by itself is not an automatic reason to change a diversified investment portfolio.
Saxony-Anhalt represents roughly 1.8% of the German economy.
The political significance of the election is enormous.
Its direct economic weight within Germany is much smaller.
Financial markets also do not react to elections in isolation.
At the same time, investors are evaluating:
- interest rates;
- inflation;
- corporate earnings;
- economic growth;
- energy prices;
- international trade;
- fiscal policy;
- geopolitical risk.
Politics matters.
Especially over the long term.
But selling an investment simply because a political headline makes you anxious can turn political uncertainty into a poor financial decision.
Worth knowing: an investment strategy should normally change when your goals, time horizon, risk tolerance or financial fundamentals change — not simply because the government of one German state may change.
So where might the real economic risk be?
In the long-term effects.
Saxony-Anhalt already faces structural economic challenges.
In 2025, its real GDP fell by 0.2%, while Germany as a whole grew by 0.2%. The state accounts for approximately 1.8% of German economic output.
That is why it will be important to watch whether the policies eventually implemented:
- attract or discourage businesses;
- generate new investment;
- improve infrastructure;
- help companies fill vacancies;
- reduce business costs;
- increase productivity;
- strengthen or weaken the state's tax base.
You cannot determine that the morning after an election.
It may take years.
And the biggest effect may happen outside Saxony-Anhalt
There is another potential consequence that matters much more if you live in Berlin, Hamburg, Munich, Cologne or anywhere else in Germany.
The response of federal politics.
A victory of this size puts significant pressure on the parties governing Germany.
It could accelerate debates about:
- taxes;
- pensions;
- social spending;
- migration;
- the labour market;
- energy;
- housing;
- competitiveness;
- bureaucracy.
This creates an interesting paradox.
The first important financial consequence of the AfD victory may not come from a law passed by the AfD at all.
It may come from:
how the CDU, SPD and the federal government respond to the result.
That is where reforms affecting millions of people across Germany could emerge.
One thing you can do today
Do not sell your ETFs.
Do not change your pension plan.
Do not withdraw money from your bank.
Do something much more useful:
separate what has actually changed from what might change.
Ask yourself:
1. Do I live or work in Saxony-Anhalt?
2. Am I planning to buy property there?
3. Has any law affecting my money actually changed?
4. Is my profession particularly dependent on the regional economy?
5. Am I making a financial decision based on facts or on anxiety?
The final question is particularly important.
Political uncertainty can be real.
But your financial decisions should still be based on verifiable information.
The AORAES takeaway
The AfD victory is a political earthquake.
But a political earthquake is not automatically an earthquake for your bank account.
Your income tax has not changed today.
Your statutory pension has not changed.
Your health insurance has not changed.
Your ETF still owns the same assets it owned yesterday.
And it is not even clear yet which government will ultimately govern Saxony-Anhalt.
What has changed is the political landscape.
Now we need to watch which government is formed, which proposals actually secure a majority and how the result changes federal politics in Berlin.
Because when it comes to your finances, what matters less than who won on election night is a much more practical question:
Which laws are actually passed afterwards?
That is the difference between reacting to politics and understanding how politics can genuinely affect your money.
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Sources
- Saxony-Anhalt State Election Authority — 2026 state election results.
- AfD Saxony-Anhalt — 2026 government programme.
- Federal Employment Agency — international employment and skilled-worker shortages in Saxony-Anhalt.
- Statistical Office of Saxony-Anhalt — regional GDP and economic development.
- German Bundestag — legislative powers of the federal government and the Länder.
- Reuters — political and economic reporting following the election.
*Last updated: 8 September 2026.*
Put the information into your own situation.
Check which personal facts, deadlines and conditions are relevant before deciding. A guide explains the framework; it does not replace individual advice.
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