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:
| Tax | from | up to | Remarks |
|---|---|---|---|
| Income tax | 14% | 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 surcharge | 0% | 5.5% | of income tax (partial exemption from 2021) |
| Church tax | 8% | 9% | of income tax |
| Flat rate withholding tax on investment income | 25% | 25% | fixed tax rate. not covered by income tax |
| Corporate income tax | 15% | 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 tax | 3.5% | 3.5% | is to be multiplied with the trade tax rate of the respective municipality |
| Trade tax rate | 200% | 900% | Minimum 200%. The trade tax rate in big cities is generally between 400% and 500% |
| VAT | 7% | 19% | For specific supplies and services there is a reduced rate of 7% |
| Real estate transfer tax | 3.5% | 6.5% | applies in case of transfer of properties and companies with real estate |
| Inheritance tax | 0.0% | 50.0% | depending on tax class (degree of relationship) and amount of inheritance within 10 years |
| Wealth tax | none | none | Currently suspended |
| Transaction tax/Stock exchange tax | none | none | Reintroduction is discussed. So far not resolved |
| Stamp duty | none | None | It does not exist in Germany |