Germany: tax at a glance

The taxes

Personal income (top)

45%Progressive, reaching 42% from ~EUR 68k and a top rate of 45%, sometimes called the rich tax, above ~EUR 278k. A solidarity surcharge of 5.5% applies to high incomes, and members of a church pay church tax equal to 8-9% of their income tax.

Corporate income

Around 30% combined, made up of 15% federal corporate income tax plus a 5.5% solidarity surcharge, totalling 15.825%, on top of municipal trade tax of roughly 14%.

Capital gains

A flat 25%, or 26.375% once the solidarity surcharge is included.

VAT / USt, also called Mehrwertsteuer.

19%

Dividends (WHT)

26.375%

Interest (WHT)

0%, though 26.375% applies to certain bank and bond interest.

Royalties (WHT)

15.825%

Social security (employee)

Around 20.6%, subject to a cap.

Social security (employer)

Around 20.6%, subject to a cap.

Wealth tax

None. The net wealth tax has been suspended since 1997.

Inheritance / estate

7-50%, depending on the relationship and the amount involved.

Property tax

Grundsteuer, reformed in 2025, plus municipal rates.

Other

Solidarity surcharge of 5.5%, plus church tax of 8-9%.

How the system works

Tax system

Worldwide (residence-based)

Foreign income

Taxed (worldwide)

Taxes by citizenship

No

Exit tax

Yes, leaving has a cost

CFC rules

Yes

CRS

Participating

A special regime for new arrivals

The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.