Germany has progressive tax rates ranging as follows (2024 tax year):
| Taxable income range for single taxpayers (EUR) |
Taxable income range for married taxpayers (EUR) |
Tax rate (%) |
| Over |
Not over |
Over |
Not over |
| 0 |
€11,604 |
0 |
€23,208 |
0 |
| €11,604 |
€66,760 |
€23,208 |
€133,520 |
14% to 42%* |
| €66,760 |
€277,825 |
€133,520 |
€555,650 |
42% |
| €277,825 |
and above |
€555,650 |
and above |
45% |
* Geometrically progressive rates start at 14% and rise to 42%.
The figures are adjusted on a regular basis.
Surcharges on income tax
To improve the economic situation and infrastructure for certain regions in need, the German government has been levying a 5.5% solidarity surcharge tax. The surcharge is imposed as a percentage on all individual income taxes.
As of 1 January 2021, the application of the solidarity surcharge tax has been substantially reduced. In general, no solidarity surcharge is levied any longer for individuals filing separately and having an income tax burden of not more than EUR 18,130 (approximately equivalent to a taxable income of EUR 68,400) as well as for married filing jointly taxpayers with an income tax burden of not more than EUR 36,260 (approximately equivalent to a taxable income of EUR 136,800). Where the aforementioned thresholds are exceeded, a sliding scale is used so that the top 5.5% solidarity surcharge would eventually only apply in full for individuals filing separately and having a taxable income of approximately EUR 105,500 or married filing jointly and having a taxable income of approximately EUR 211,000. The full rate of solidarity surcharge is applied on capital investment income subject to lump sum taxation and on employment income taxed at lump sum rates. The figures are adjusted on a regular basis.
Members of officially recognised churches pay church tax as a surcharge on their income tax. The rates are either 8% or 9%, depending on the federal state where the individual resides.
Trade income tax
Trade income tax is levied on business income, whereas for individuals and partnerships a tax-free amount of EUR 24,500 has to be considered (i.e. not for corporations).
The respective municipality is responsible for the final tax assessment. The rate fixed by the municipality ('Hebesatz') is for larger cities between approximately 250% and 580% of the basic amount, which is 3.5% of the business income.
