- Brackets updated
migrated from the production database; research reasoning not recorded.
Top income tax
45.0%
effective 47.5%
Corporate tax
15.8%
USt
19.0%
standard rate
Tax residency
183 days
94 tax treaties
Germany tax profile
Data year: 2026
- Tax system
- Worldwide Municipal trade tax (Gewerbesteuer 7-17%) applies to businesses. Church tax (8-9%) for church members.
- Top PIT rate
- 45.0% (eff. 47.5%)
- Corporate tax rate
- 15.8%
- USt
- 19.0%
- Capital gains tax
- 26.4% 25% Abgeltungsteuer plus 5.5% solidarity surcharge (26.375% withholding; stored as 26.38%). EUR 1,000 annual investor allowance on financial investment income (EUR 2,000 if married filing jointly). Real property gains generally tax-free after ten years; other movable assets after one year if total gains exceed EUR 1,000 per year.
- Social security (employee)
- 21.2%
- Social security (employer)
- 21.3%
- Social security cap (annual)
- EUR 101,400
- Dividend withholding
- 26.4%
- Interest withholding
- 26.4%
- Royalty withholding
- 15.8%
- Inheritance tax
- 50.0%
- Treaty count
- 94
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| EUR 0 | EUR 12,348 | 0.0% |
| EUR 12,349 | EUR 17,799 | 14.0% |
| EUR 17,800 | EUR 69,878 | 24.0% |
| EUR 69,879 | EUR 277,825 | 42.0% |
| EUR 277,826 | and above | 45.0% |
Tax flags
Participation Exemption
Tax residency
- Days threshold
- 183 days
- Residency rules
- Resident if domiciled in Germany or habitually present for more than 6 months in a calendar year
- Exit tax
- Yes Exit tax on unrealised gains in substantial shareholdings (>1%) when leaving Germany
- CFC rules
- Yes CFC rules apply when German shareholders hold >50% and entity is subject to low taxation (<25%)
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- July 31
- Extension deadline
- Feb 28 (via tax advisor)
Sources
- §32a EStG Einkommensteuertarif 2026 (accessed Oct 9, 2026) Official 2026 PIT tariff zones and Grundfreibetrag EUR 12,348
- BMF Stand der DBA 1 January 2026 (accessed Oct 9, 2026) 94 income and wealth double taxation agreements in force
- BMF 2026 tax changes (accessed Oct 9, 2026) Grundfreibetrag, tariff indexation, Aktivrente, hospitality VAT cut
- BMF 2026 wage tax table overview (accessed Oct 9, 2026) 2026 contribution ceilings (e.g. pension BBG EUR 101,400)
- PwC Germany Tax Summary (accessed Oct 9, 2026) PIT, CIT, solidarity surcharge, trade tax, VAT, WHT, social security, residency
- GTAI Germany Trade & Invest (accessed Oct 9, 2026) Corporate taxation overview, trade tax details