Important tax rates in Germany

Note: Taxes change frequently. This information has been provided to the best of our knowledge – and it does not claim to be legally binding. Information update: January 2021.

Church tax in Bavaria and Baden-Wuerttemberg 8%, otherwise 9% of income tax

Important tax rates in Germany:

Taxfromup toRemarks
Income tax14%45% maximum individual income tax rate with taxable income exceeding 250K €. Married couples can make use of joint spouse assessment rate, i.e. their income is considered together
Solidarity surcharge0%5.5%of income tax (partial exemption from 2021)
Church tax8%9%of income tax
Flat rate withholding tax on investment income25%25%fixed tax rate. not covered by income tax
Corporate income tax15%15% applicable for corporations
Withholding tax on investment income 0%generally 25%25%, but may be less as per DTT or on grounds of the EU Parent-Subsidiary Directive
Trade tax3.5%3.5% is to be multiplied with the trade tax rate of the respective municipality
Trade tax rate200%900%Minimum 200%. The trade tax rate in big cities is generally between 400% and 500%
VAT7%19% For specific supplies and services there is a reduced rate of 7%
Real estate transfer tax3.5%6.5%applies in case of transfer of properties and companies with real estate
Inheritance tax0.0%50.0% depending on tax class (degree of relationship) and amount of inheritance within 10 years
Wealth taxnonenoneCurrently suspended
Transaction tax/Stock exchange taxnonenoneReintroduction is discussed. So far not resolved
Stamp dutynoneNoneIt does not exist in Germany

Good to know: the major tax-rates in Germany
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