German Income Tax (2026): Residence Tests, Rates, Tax ID

Who is taxed in full: residence and habitual abode

Under § 1 of the Income Tax Act, natural persons who have a Wohnsitz or their gewöhnlicher Aufenthalt in Germany are subject to unlimited income tax liability. The Fiscal Code defines both terms. A person has a Wohnsitz where they hold a dwelling in circumstances showing they will keep and use it. A person has a gewöhnlicher Aufenthalt where they stay in circumstances showing they are there not only temporarily. A continuous stay of more than six months in the area where the Fiscal Code applies is always treated as habitual abode from the start, and short interruptions are disregarded. That rule does not apply to a stay solely for visits, recreation, a cure or similar private purposes lasting no longer than one year.

gesetze-im-internet.de: Einkommensteuergesetz (EStG) gesetze-im-internet.de: Abgabenordnung (AO) § 8 Wohnsitz gesetze-im-internet.de: Abgabenordnung (AO) § 9 Gewöhnlicher Aufenthalt

Limited liability and the year of a move

A person with no Wohnsitz and no gewöhnlicher Aufenthalt in Germany is subject to limited income tax liability if they have domestic income within the meaning of § 49, unless one of the special rules in § 1 (2) and (3) or § 1a applies, such as the application option described next. If a calendar year has both kinds of liability, domestic income earned in the limited period is included in the assessment as an unlimited taxpayer (§ 2 (7)).

gesetze-im-internet.de: Einkommensteuergesetz (EStG)

The application option for people with no Wohnsitz or habitual abode

On application, a person with no Wohnsitz and no gewöhnlicher Aufenthalt in Germany is treated as an unlimited taxpayer as far as they have domestic income within the meaning of § 49, but only if at least 90 Prozent of their income in the calendar year is subject to German income tax or the income not subject to it does not exceed the basic allowance; that amount is reduced where this is necessary and appropriate given the conditions in the person's country of residence. Domestic income that a double-taxation agreement allows to be taxed only up to a limited amount counts here as not subject to German income tax. The law adds further conditions, including a certificate from the competent foreign tax authority.

gesetze-im-internet.de: Einkommensteuergesetz (EStG)

The income tax schedule printed for 2026

Section 32a (1) prints the scheduled income tax in Euro by taxable income, from assessment year 2026, subject to special rules in other sections of the Act (§§ 32b, 32d, 34, 34a, 34b and 34c). Up to 12 348 Euro (the Grundfreibetrag, or basic allowance): 0. From 12 349 Euro to 17 799 Euro: (914,51 • y + 1 400) • y. From 17 800 Euro to 69 878 Euro: (173,10 • z + 2 397) • z + 1 034,87. From 69 879 Euro to 277 825 Euro: 0,42 • x – 11 135,63. From 277 826 Euro: 0,45 • x – 19 470,38. Amounts are shown as printed: a space separates thousands, a comma marks decimals. The law text read here was last amended by a law of 29.6.2026.

gesetze-im-internet.de: Einkommensteuergesetz (EStG)

How the formulas work, and married couples

Tax is worked out on taxable income rounded down to a full euro. In the formulas, x is that rounded-down taxable income. The letter y is one ten-thousandth of the part of it above the basic allowance. The letter z is one ten-thousandth of the part above 17 799 Euro. The resulting tax is rounded down to the next full euro. For spouses assessed jointly under §§ 26 and 26b, the tax is twice the amount that results under paragraph 1 for half of their joint taxable income. The law calls this the Splitting-Verfahren.

gesetze-im-internet.de: Einkommensteuergesetz (EStG)

Solidarity surcharge

The Solidaritätszuschlag is a supplementary levy on income tax; the persons liable include natural persons who are subject to income tax under § 1 of the Income Tax Act. On assessment, the base is the income tax that would be set if the child allowances of § 32 (6) were deducted for every child who counts under § 32. For assessment year 2026, the surcharge is 5,5 Prozent of the base, capped at 11,9 Prozent of the difference between the base, reduced by tax under § 32d (3) and (4), and the applicable threshold. For persons subject to income tax it is levied only if that reduced base exceeds 40 700 Euro in the splitting cases of § 32a (5) and (6), or 20 350 Euro in other cases; tax under § 32d (3) and (4) is charged regardless. These thresholds apply from assessment year 2026.

gesetze-im-internet.de: Solidaritätszuschlaggesetz 1995 (SolzG 1995) gesetze-im-internet.de: Einkommensteuergesetz (EStG)

Tax identification number and church tax

The Federal Central Tax Office says the identification number is an eleven-digit number with no information about the person. It is permanently valid and does not change if you move house, change your name or change your marital status. You can usually find it in your income tax assessment or on your employment tax statement; you can also submit your income tax return without it. On a page about church tax on capital income, the office says church tax is levied on all kinds of income and applies if you belong to a religious community that levies it. The page prints no church tax rate and refers questions about joining or leaving to the community or the competent offices in your municipality or Land.

bzst.de: The identification number bzst.de: Kirchensteuer auf Kapitalertragssteuer

A draft change that is not in force

A change is announced but is not in force. The Federal Ministry of Finance says the federal cabinet adopted a draft Einkommensteuerreformgesetz 2027 on 2 September 2026. The Bundestag printed the bill as Drucksache 21/8235, dated 28.09.2026. In the bill, the Grundfreibetrag would be 12 564 Euro in the schedule for 2027 and 12 900 Euro in the schedule for 2028. In the bill's draft schedules for assessment years 2027 and 2028, a 45 Prozent rate would apply to taxable income from 250 000 Euro to 279 999 Euro, and a new 47 Prozent rate from 280 000 Euro. These are proposals, not law. The bill would take effect on 1 January 2027, with Articles 2 and 5 on 1 January 2028. The 2026 schedule above is the one in the law text read on 7 October 2026.

bundesfinanzministerium.de: Bundesregierung bringt Einkommensteuerreform auf den Weg dserver.bundestag.de: Drucksache 21/8235, Entwurf eines Einkommensteuerreformgesetzes 2027 gesetze-im-internet.de: Einkommensteuergesetz (EStG)

What this page does not cover

This page does not cover the separate rate on most capital income (§ 32d), how income from abroad can still raise the rate in a year with a move (§ 32b), wage tax withholding and tax classes, which tax treaties Germany has with other countries and what they say, the church tax rate, how a new arrival first receives a tax identification number, filing deadlines and forms, trade tax, VAT or social insurance contributions. Check the official pages for them.