What are Germany's income tax rates in 2026?

Checked on 2026-10-25

From the 2026 tax year, German income tax is zero on taxable income up to €12,348 (the basic allowance). Above that a progressive formula applies; from €69,879 the tax is 42% of income minus €11,135.63, and from €277,826 it is 45% minus €19,470.38. Married couples assessed jointly use income splitting.

Key facts

What	The law says	Source
Taxable income up to €12,348	No income tax (Grundfreibetrag, basic allowance), from the 2026 assessment period	EStG § 32a(1) sentence 2 no. 1
€12,349 to €17,799	Tax = (914.51 · y + 1,400) · y, where y is one ten-thousandth of the income above the basic allowance	EStG § 32a(1) no. 2, sentence 3
€17,800 to €69,878	Tax = (173.10 · z + 2,397) · z + 1,034.87, where z is one ten-thousandth of the income above €17,799	EStG § 32a(1) no. 3, sentence 4
€69,879 to €277,825	Tax = 0.42 · x − 11,135.63, where x is the taxable income	EStG § 32a(1) no. 4
From €277,826	Tax = 0.45 · x − 19,470.38	EStG § 32a(1) no. 5
Rounding	Income rounded down to full euros; tax rounded down to the next full euro	EStG § 32a(1) sentences 1 and 6
Married couples assessed jointly	Twice the tax on half the joint taxable income (splitting)	EStG § 32a(5)
Solidarity surcharge	5.5%, charged on income tax only above €20,350 (€40,700 for splitting cases), capped at 11.9% of the excess over that threshold	SolZG § 3(3), § 4

How the tariff works

The Income Tax Act sets the tax in § 32a as formulas, not as a table of fixed bands. The figures above are the ones the law states “from the 2026 assessment period” (ab dem Veranlagungszeitraum 2026). The first €12,348 of taxable income is tax-free. In the two middle zones the tax rises along a curve. From €69,879 the formula is 42% of the whole taxable income minus a fixed €11,135.63, and from €277,826 it is 45% minus €19,470.38.

The tariff applies to taxable income (zu versteuerndes Einkommen), after deductions, and § 32a itself says it applies subject to special rules in §§ 32b, 32d, 34, 34a, 34b and 34c EStG.

Married couples: splitting

If spouses are assessed jointly (§§ 26, 26b EStG), the law takes half of their joint taxable income, applies the formula, and doubles the result (EStG § 32a(5)).

Solidarity surcharge

The Solidarity Surcharge Act, as in force on 25 October 2026, sets the surcharge at 5.5% of the assessment base (SolZG § 4). For income tax it is charged only if the base exceeds €20,350, or €40,700 where splitting applies (SolZG § 3(3)). Just above that threshold it can’t be more than 11.9% of the amount by which the base exceeds it (SolZG § 4). The threshold doesn’t apply to the flat tax on capital income under § 32d(3) and (4) EStG, which always carries 5.5% (SolZG § 3(3), § 4).

Who has unlimited German income tax liability: see the Germany tax residency page.

Sources

Einkommensteuergesetz (EStG), § 32a Einkommensteuertarif (consolidated text, gesetze-im-internet.de) checked 2026-10-25
Solidaritätszuschlaggesetz 1995 (SolZG), § 3 (consolidated text, gesetze-im-internet.de) checked 2026-10-25
Solidaritätszuschlaggesetz 1995 (SolZG), § 4 (consolidated text, gesetze-im-internet.de) checked 2026-10-25

Change history

2026-10-25: Page created

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