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Dividend tax in Germany 2026
Dividends and interest are settled at source with a flat 25% — 26.375% once the solidarity surcharge is added — and for most people that's the end of it: nothing more to file.
The first €1,000 a year (€2,000 for couples) is free under the saver's allowance, and anyone whose personal rate is below 25% can opt to be assessed at it instead.
At a glance
- top rate
- 26.375% final (25% + solidarity surcharge; + church tax for members)
- entry band
- €1,000 saver's allowance (€2,000 joint)
- tax year basis
- Withheld at source
- filing deadline
- Usually none — the withholding is final
- residency basis
- Residents: worldwide investment income
- regime flag
- Assessment option if your marginal rate is under 25%
Rates
How dividends and interest are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 26.375% | Gross, above the saver's allowance | Dividends and interest — final flat withholding (Abgeltungsteuer) |
| Your own rate | Same income | Optional assessment when your marginal rate is below 25% |
| Progressive on 60% | Dividends held as business assets or 1%+ stakes | Partial-income method: 40% exempt, 60% at your rates |
Thresholds & allowances
- Saver's allowance€1,000 (€2,000 joint)
Covers all investment income; file an exemption order with your bank to get it at source
Residency
Residency trigger
German banks withhold automatically; foreign investment income must be declared and lands at the same flat rate.
Non-resident treatment
Non-residents face the same 26.375% withholding on German dividends, reduced by treaty (typically to 15%); German bank interest to non-residents is generally not withheld.
Notes
- Expenses connected to investment income are not deductible under the flat tax — the saver's allowance replaces them.
- Church members pay church tax on investment income too, collected by the bank.
- Interest on loans between related parties and substantial-shareholder loans is taxed at progressive rates, not the flat rate.
FAQ
What is Germany's dividend tax rate?
A flat 26.375% withheld at source (25% plus the solidarity surcharge), after a €1,000 annual saver's allowance — final for most people, with an opt-out for those whose own rate is lower.
Do I have to declare dividends in Germany?
Not if a German bank withheld the 25% flat tax (26.375% with the surcharge) — it's final. Foreign accounts and the assessment option still go in the return.
Figures: tax year 2026, compiled from public sources. Not tax advice.