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

Good to know: the major tax-rates in Germany
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