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Income tax in Germany 2026
Nothing is taxed below €12,348; above it the rate glides smoothly from 14% up to 42% at €69,879, with a 45% top rate beyond €277,825 — there are no hard bracket jumps.
Couples filing jointly are taxed as if each earned half the total, which flattens the progression dramatically when one partner earns more.
At a glance
- top rate
- 45% above €277,825 (+5.5% solidarity surcharge on the tax)
- entry band
- 0% up to €12,348, then from 14%
- tax year basis
- Calendar year
- filing deadline
- 31 July following the year; prepayments quarterly
- residency basis
- Residents taxed on worldwide income
- regime flag
- Church members pay 8–9% of the tax as church tax
Rates
Income tax 2026 — single filers (joint filers: double every threshold)
| Taxable income (EUR) | Marginal rate | Note |
|---|---|---|
| 0 – 12,348 | 0% | Basic allowance |
| 12,349 – 17,799 | 14% rising to ~24% | Fast progression zone |
| 17,800 – 69,878 | ~24% rising to 42% | Slow progression zone |
| 69,879 – 277,825 | 42% | |
| Over 277,825 | 45% | The 'wealth tax rate' band |
Marginal rates apply within each band.
Thresholds & allowances
- Basic allowance€12,348 (€24,696 joint)
2026 value; adjusted annually
- Employee expense lump sum€1,230
Automatic; higher actual costs deductible instead
- Child allowances€3,414 + €1,464 care allowance per child
Or child benefit of €259/month — the tax office applies whichever helps more
- Commuting allowance€0.38 per kilometre from km 1 (2026)
One-way distance, any transport
Surcharges
- Solidarity surcharge5.5% of the income taxover Tax above €20,350 (€40,700 joint) — roughly the top 10% of earners
- Church tax (members only)8% or 9% of the income taxover Registered church members; leaving the church ends it
Residency
Residency trigger
A home at your disposal in Germany, or a stay of more than 6 continuous months, makes you resident — intent matters less than the physical facts.
Non-resident treatment
Non-residents pay German tax on German income; salaries face payroll withholding that is usually final, and the basic allowance applies to German employment income.
Notes
- Employee social insurance of roughly 21% is separate — see the social security page — so gross-to-net at middle incomes is driven as much by contributions as by tax.
- The solidarity surcharge was abolished for about 90% of taxpayers; it now only bites above the exemption limits.
- Losses up to €1 million carry back 2 years and forward indefinitely (with limits above €1 million).
- Extensions to end-February of the second year are automatic with a tax adviser.
FAQ
What are Germany's income tax rates in 2026?
0% up to €12,348, then a smooth glide from 14% to 42% at €69,879, and 45% above €277,825 — plus a 5.5% solidarity surcharge on the tax for higher earners.
How does German income splitting work?
Joint filers are taxed as if each spouse earned exactly half the combined income — with a €24,696 joint allowance, a single-earner couple on €100,000 saves thousands versus filing alone.
Who still pays the solidarity surcharge?
Only those whose income tax exceeds €20,350 (€40,700 for couples) in 2026 — roughly the top tenth of earners; investment income always carries it.
When is the German tax return due?
31 July of the following year, or end of February of the second year if a tax adviser files for you.
Figures: tax year 2026, compiled from public sources. Not tax advice.