German Capital Gains (Abgeltungsteuer) Calculator
This professional-grade calculator estimates German taxes on investment income under the Abgeltungsteuer regime. It applies loss offsets, the Sparer-Pauschbetrag allowance, the 25% flat tax, the 5.5% solidarity surcharge, and optional church tax (8% or 9%), giving you a transparent, step-by-step breakdown.
Calculator
Results
Results update automatically as you type. For guidance, see formulas and methodology below.
Data Source and Methodology
Authoritative sources:
- Einkommensteuergesetz (EStG) §32d (Flat tax on investment income, 25%) — Federal Law, current text. Link: gesetze-im-internet.de/estg/__32d.html
- EStG §20 Abs. 9 (Sparer-Pauschbetrag allowance, €1,000/€2,000) — Federal Law. Link: gesetze-im-internet.de/estg/__20.html
- Solidaritätszuschlaggesetz (SolzG 1995) — Solidarity surcharge 5.5% of capital income tax at source. Link: gesetze-im-internet.de/solzg_1995
- Kirchensteuergesetze der Länder — Church tax 8% (BW, BY) or 9% (others) with source withholding mechanism. Overview: bzst.de – Kirchensteuer
Tutti i calcoli si basano rigorosamente sulle formule e sui dati forniti da questa fonte.
The Formula Explained
Let: I_g = gross investment income, L = allowable losses, A = allowance, k = church tax rate (0, 0.08 or 0.09).
We compute:
$$ I_{net} = \max\bigl(0,\; I_g - L \bigr) $$ $$ B = \max\bigl(0,\; I_{net} - A \bigr) $$ $$ E = \frac{0.25 \cdot B}{1 + 0.25\cdot k} $$ $$ K = k \cdot E \quad;\quad S = 0.055 \cdot E $$ $$ T = E + K + S \quad;\quad r = \begin{cases} \dfrac{T}{B}, & B>0 \\ 0, & B=0 \end{cases} $$
E is the Abgeltungsteuer, K church tax, S solidarity surcharge, T total tax, r effective rate.
Glossary of Variables
- Total investment income (I_g): Interest, dividends, and realized gains subject to Abgeltungsteuer.
- Losses (L): Offsettable investment losses within the same category before the allowance.
- Allowance (A): Sparer-Pauschbetrag (€1,000 single, €2,000 married). Reduces taxable income but cannot create a negative base.
- Taxable base (B): Remaining positive income after losses and allowance.
- Abgeltungsteuer (E): 25% flat tax on B, adjusted for church tax deduction mechanism.
- Church tax (K): 8% or 9% of E, if applicable.
- Solidarity surcharge (S): 5.5% of E.
- Total tax (T): E + K + S.
- Effective tax rate (r): T divided by B, shown as a percentage.
How It Works: A Step-by-Step Example
Scenario: Single; investment income €5,000; losses €500; allowance auto (€1,000); church tax 9%.
- Compute net before allowance: I_net = max(0, 5,000 − 500) = €4,500.
- Taxable base: B = max(0, 4,500 − 1,000) = €3,500.
- Abgeltungsteuer: E = 0.25 × 3,500 ÷ (1 + 0.25 × 0.09) = 875 ÷ 1.0225 ≈ €855.12.
- Church tax (9%): K = 0.09 × 855.12 ≈ €76.96.
- Solidarity surcharge (5.5%): S = 0.055 × 855.12 ≈ €47.03.
- Total tax: T ≈ 855.12 + 76.96 + 47.03 = €979.11.
- Effective rate: r = 979.11 ÷ 3,500 ≈ 27.97%.
- After-tax from taxable portion: 3,500 − 979.11 ≈ €2,520.89.
Frequently Asked Questions (FAQ)
Does the allowance apply per person or per account?
Per person: €1,000 for singles and €2,000 for married couples filing jointly. You may allocate it across banks via a “Freistellungsauftrag.”
Is solidarity surcharge always 5.5% on capital income?
Yes, for Abgeltungsteuer at source. The general soli relief thresholds for wage/income tax do not apply to investment income withheld by banks.
How are losses treated across different asset classes?
Germany applies distinct loss pots for some instruments. This calculator assumes offsettable investment losses within the Abgeltungsteuer category.
What if my personal income tax rate is below 25%?
You can apply for an assessment (“Günstigerprüfung”). If your personal rate is lower, you may receive a refund of excess withholding.
Which church tax rate should I choose?
8% in Baden-Württemberg and Bavaria; 9% in all other federal states, if you are subject to church tax. If not, choose “None.”
Are ETF distributions and bond interest included?
Yes, they generally fall under investment income. Special partial exemptions (e.g., equity fund partial exemption) are not modeled here.
Does this calculator handle foreign withholding tax credits?
No. Cross-border tax credits depend on treaties and individual situations. Consult a tax advisor for assessment scenarios.