Taxes in Germany for Individuals: Types, Rates and Main Rules
In Germany, individuals pay different taxes depending on their type of income, family situation, employment status and tax class. This section gives you the main information about income tax, tax classes, salary deductions, tax allowances, and other taxes that apply to employees, families, pensioners and private investors.
Taxes in Germany
In Germany, people must pay tax on their income, as well as indirect taxes when they buy goods and services. The main tax is income tax (Einkommensteuer), which is calculated on a progressive scale. Besides this, depending on your situation, you might also have to pay other taxes – for example, church tax, vehicle tax or property tax.
The German tax system is based on the principle that the more you earn, the more tax you pay.
Main Taxes for Individuals
Individuals in Germany usually pay or face the following main taxes:
- Income tax (Einkommensteuer) – tax on income (wages, business, rent)
- Lohnsteuer – taken directly from your salary
- Abgeltungsteuer – tax on investment income
- Solidarity surcharge (Solidaritätszuschlag)
- Church tax (Kirchensteuer)
- Value added tax (Mehrwertsteuer, VAT) – included in the price of goods
- Vehicle tax (Kfz-Steuer)
- Property tax (Grundsteuer)
- Inheritance and gift tax (Erbschaftsteuer / Schenkungsteuer)
Each of these taxes has its own rules, rates and calculation methods.
Key Financial Figures for 2026
| Tax-free allowance for one person | 12,348.00 € per year |
|---|---|
| Income tax rates | 14-45 % |
| Church tax | 8-9 % of income tax |
| Solidarity surcharge | 5.5 % of income tax |
| Tax on investment income | 25.0 % |
| VAT, standard rate | 19.0 % |
| VAT, reduced rate | 7.0 % |
Pages about Taxes
Income Tax in Germany
- Personal income tax overview
- Taxable income
- Income tax rates 2026
- Tax-free allowance 2026
- How income tax is calculated: examples
Tax Classes in Germany
- What are tax classes?
- List of classes
- Tax Class 1
- Tax Class 2
- Tax Class 3
- Tax Class 4
- Tax Class 5
- Tax Class 6
- How to choose a tax class
- How to change your tax class
- Tax class for a mini-job
Author team finanz-handbuch.de
Last updated: