Taxes

Germany — Tax: Income Tax

Germany's Einkommensteuer (income tax) is progressive, from 0% up to 45%. For 2026, the basic tax-free allowance (Grundfreibetrag) is €12,348. Income from €12,348-69,878 is taxed on a rising scale from 14% to 42%; €69,879-277,825 is a flat 42% (Spitzensteuersatz); above €277,826 is 45% (Reichensteuer, the 'rich tax'). A solidarity surcharge (Solidaritätszuschlag) of 5.5% of the income tax bill applies only once annual income tax exceeds €20,350 (single) or €39,900 (jointly assessed couples) — most middle-income taxpayers no longer pay it.

Bundesministerium der Finanzen (Federal Ministry of Finance) · Last verified 2026-07-20

Key Facts

  • 2026 basic tax-free allowance (Grundfreibetrag): €12,348.
  • Progressive zones: €12,348-69,878 rises from 14% to 42%; €69,879-277,825 flat 42% (Spitzensteuersatz); above €277,826 flat 45% (Reichensteuer).
  • Solidarity surcharge (5.5% of the income tax bill) only applies above €20,350 (single) / €39,900 (joint) in annual income tax — most taxpayers are exempt.
  • The 42% top-rate threshold rose slightly in 2026 (from €68,481 to €69,879).

Required Documents

  • Tax ID (Steuer-ID)
  • Annual income tax return (Einkommensteuererklärung)
  • Employer wage statement (Lohnsteuerbescheinigung)

Common Mistakes

  • Assuming the solidarity surcharge still applies broadly — since recent reforms, most taxpayers below the €20,350/€39,900 income-tax thresholds pay none.
  • Confusing the flat Spitzensteuersatz zone (42%) with the progressive zone below it, where the marginal rate rises gradually rather than jumping straight to 42%.

Related Topics

tax-residencycapital-gainsdouble-tax-treaties
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