Germany tax rates
The top rates a resident individual pays on each kind of income, computed by the Sovereign tax engine from its Germany tax profile.
Sources incomplete — at least one figure has no accepted source yet. Figures last changed 4 November 2026. Profile last reviewed 29 April 2026.
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| Salary | Capital gains | Dividends | Interest | Rent | Crypto gains | |
|---|---|---|---|---|---|---|
| Germany | 47.48% | 26.37%† | 26.37% | 26.37% | 47.48% | 47.48% |
† This figure rests on a PwC tax summary, not on the statute itself. The summary is the only source on file for it.
Each figure is the tax on one more unit of a very large amount of that income, with every layer the engine models: surtaxes and uncapped social contributions included. It is the top marginal rate, not the average rate you pay on all your income.
What is the top income tax rate in Germany?
The top rate on a salary is 47.48%. It is the tax on each extra unit of a very high salary, with surtaxes and uncapped social contributions included. The income tax scale alone reaches 45% above EUR 277,825.
How are capital gains taxed in Germany?
The top rate on a long-term capital gain is 26.37%. The rate does not depend on how long you held the asset.
How are dividends and interest taxed in Germany?
The top rate is 26.37% on dividends and 26.37% on interest. Rental income is taxed at up to 47.48%.
How is crypto taxed in Germany?
Germany taxes a gain on crypto assets as income, at up to 47.48%.
Does Germany tax foreign income?
Yes. Germany taxes its residents on their worldwide income. A tax treaty or a credit for foreign tax can reduce the tax on income from abroad.
Does Germany have a wealth tax?
No. Germany has no recurring national tax on net wealth in our model. Property taxes and taxes on gifts or inheritances are separate.
Does Germany have an exit tax for individuals?
Yes. Germany can tax unrealised gains, or some of them, when a resident individual moves abroad. The conditions depend on the asset and the holding.
When do you become tax resident in Germany?
The Germany day test (habitual abode: a stay of more than six months): a continuous stay of more than six months. A residence (Wohnsitz), meaning a home you keep and use, makes you resident from the first day, whatever your days.
Residence decides whether Germany taxes you on these rates. See the Germany day-count test and count your own days.
Sources
The Germany profile cites 8 sources for these rules, 8 of them from a government or a statute.
- Steuerfortentwicklungsgesetz (BGBl. 2024 I Nr. 449) Art. 1 Nr. 2 - § 32a Abs. 1 EStG ab Veranlagungszeitraum 2025 · official, retrieved 2026-10-02
- Einkommensteuergesetz § 32a Abs. 1 - Einkommensteuertarif ab Veranlagungszeitraum 2026 · official, retrieved 2026-10-02
- BMF / Steuerentlastungsgesetz 2024 - Grundfreibetrag 2025 · official, retrieved 2026-04-29
- SVBezGrV 2026 § 4: pension ceiling · official, retrieved 2026-11-03
- BMG: health ceiling and average supplementary rate · official, retrieved 2026-11-03
- BMG: 2025 announced average supplementary contribution · official, retrieved 2026-11-03
- BMG: employee shares and contribution ceilings · official, retrieved 2026-11-03
- Einkommensteuergesetz § 20 Abs. 9 - Sparer-Pauschbetrag · official, retrieved 2026-10-02
The model covers the general rules for a resident individual. It does not cover every deduction, credit, tax treaty or local tax, and rules change after the check date above. Did you find an error? Tell us, with the source.
Compare Germany with other countries
Top rates do not show what you would pay. Sovereign applies these rules to your own assets, income and debts, and compares the result across 165 countries. Put Germany side by side with other countries, see every country or try the live demo.
Other countries in Western Europe: Denmark, Spain, Finland, France, United Kingdom, Guernsey.