🇩🇪 Germany · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
Germany taxes income progressively (with a solidarity surcharge for higher earners and church tax where applicable) and levies VAT on most goods and services. Tax residents are taxed on worldwide income; tax classes affect monthly withholding.
Companies file with the local tax office (Finanzamt) under the federal framework. Corporate profits are subject to corporate income tax plus a solidarity surcharge and municipal trade tax; VAT applies to most supplies.
- Corporate income tax is 15% plus a solidarity surcharge; municipal trade tax brings the combined rate to roughly 30%.
- The standard VAT rate is 19%, with a reduced 7% rate for certain goods.
- Filing is handled electronically through the ELSTER portal.
Official authorities
- Federal Central Tax Office (BZSt)
Federal tax administration.
- ELSTER
Official electronic tax-filing portal.
Frequently asked questions
What are tax classes (Steuerklassen)?
Tax classes determine how much wage tax is withheld based on marital and family status; they affect monthly take-home, reconciled in the annual return.
Is there church tax?
Registered members of certain churches pay a church tax collected with income tax; not being a registered member avoids it.
Am I taxed on worldwide income?
Tax residents are taxed on worldwide income, subject to double-tax treaties; non-residents are taxed on German-source income.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- Federal Government of Germany — Germany's Federal Cabinet official website — policy, legislation, news, and government programs
- Federal Office for Migration (BAMF) — German visas, EU Blue Card, asylum, integration courses, and permanent residency
- Federal Central Tax Office (BZSt) — Tax ID (IdNr) registration, tax identification lookup, withholding tax refunds — the key authority for foreign taxpayers in Germany