Europe
Germany tax rates 2026
A residence-based system with combined corporate tax near 30% and a flat 25% investment tax. There is no wealth tax, though a solidarity surcharge and church tax both apply.
Worldwide (residence-based)
Last verified
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
None. Germany has no expat, non-dom or inpatriate tax regime of any kind.
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.
Ways to relocate to Germany
The residency and citizenship routes that lead here, weighed against the tax picture above.