Germany Abgeltungsteuer Calculator: Tax on Investment Income
Work out the German Abgeltungsteuer — the flat 25% tax on investment income (interest, dividends, capital gains) — and the net gain you keep after the capital-income tax.
Adjust the inputs and select Calculate for a full breakdown.
Compare Common Scenarios
How the numbers shift across typical situations for this calculator:
| Scenario | Abgeltungsteuer | Income plus tax figure |
|---|---|---|
| 25% of €4,000 (€1,000) | $1,000.00 | $5,000.00 |
| 25% of €1,000 | $250.00 | $1,250.00 |
| 26.375% of €4,000 (with Soli) | $1,055.00 | $5,055.00 |
| 25% of €10,000 | $2,500.00 | $12,500.00 |
How This Calculator Works
Enter your taxable investment income (after the saver's allowance) and the rate (25%). The calculator shows the tax due; subtract it from the income to see the net. The Abgeltungsteuer is a flat withholding tax on capital income, usually deducted at source by your German bank or broker — separate from your normal income-tax rate.
The Formula
Percentage Add-On
Rate is the tax or tip percentage applied to the amount
Worked Example
At 25% on €4,000 of investment income, the Abgeltungsteuer is €1,000, leaving €3,000 net (before the solidarity surcharge). The Abgeltungsteuer is Germany's flat tax on private capital income: a 25% rate on interest, dividends and capital gains, withheld at source by the bank. On top of the 25% come the 5.5% solidarity surcharge and, if applicable, church tax — raising the effective rate to about 26.375% (or roughly 28% with church tax). A tax-free saver's allowance (Sparerpauschbetrag) exempts the first slice of capital income each year.
Key Insight
The Abgeltungsteuer is how most private investment income is taxed in Germany, and a few features define the real burden. It's a flat tax, not a progressive one: 25% applies regardless of your income level, which benefits high earners (whose marginal income-tax rate exceeds 25%) and can disadvantage low earners — who can use the Günstigerprüfung option to have capital income taxed at their lower personal rate if that's cheaper. It's a withholding tax: German banks and brokers deduct it at source and remit it, so for most domestic investors there's nothing to file (the tax is 'abgeltend' — settling the liability). The headline 25% is not the whole story — the 5.5% solidarity surcharge is always added on the tax (the Soli still applies in full to capital income even though it was abolished for most ordinary income), and church members add church tax (8–9% of the tax), pushing the effective rate to about 26.375% or ~28%; this calculator shows the base 25% only. The saver's allowance (Sparerpauschbetrag) exempts the first portion of capital income each year, claimed via a Freistellungsauftrag with your bank to avoid over-withholding — so tax is only due above the allowance, and you should set the input to income after the allowance. Other nuances: losses can be offset within capital income (with a separate pot for share losses), foreign withholding tax on dividends can often be credited, and income from foreign accounts isn't withheld at source and must be declared. This calculator shows the 25% base tax and lets you read off the net; for your true liability add the solidarity surcharge (and church tax if applicable) and apply the saver's allowance first.
Sparerpauschbetrag €1,000/€2,000: what it shelters in practice
Since 2023, the Sparerpauschbetrag (saver's allowance) is €1,000 per year per single taxpayer or €2,000 for married couples filing jointly — raised from the previous €801/€1,602. Below this annual allowance, capital income (interest, dividends, realised capital gains) is fully tax-free.
Translating to capital: at a 3% interest rate (typical Festgeld in 2026), the €1,000 allowance covers about €33,300 of deposit; €2,000 covers about €66,600. At a 4% dividend yield, the allowance covers about €25,000 / €50,000 of dividend-paying holdings. For a moderate equity-fund portfolio with 2% annual distribution, the allowance covers around €50,000 / €100,000.
To activate the allowance, file a Freistellungsauftrag (exemption order) with each bank where you hold accounts. You can split the €1,000 across multiple banks (e.g. €600 at bank A + €400 at bank B), but the total across all banks cannot exceed your personal allowance — over-allocation triggers automatic year-end correction by the BZSt with back tax due.
Günstigerprüfung: when your slab rate beats 25%
The Abgeltungsteuer is a flat 25% (plus Soli 5.5%, plus church tax 8–9% in some Länder) — chosen as 'final' tax meaning the bank withholds and you owe nothing further. But for low-income earners whose personal income tax rate is below 25%, this is more than they would otherwise owe.
Solution: opt for Günstigerprüfung (favourability check) on the annual tax return by ticking Anlage KAP. The Finanzamt then taxes your capital income at your personal income tax rate if that's lower than 25%, refunding the difference from what was withheld.
Who benefits: students with part-time income, retirees with low pensions, parents on parental leave, anyone with low taxable income but meaningful capital income. The threshold roughly works out to taxable income below ~€18,000 for singles, ~€36,000 for couples — below those, ticking the Günstigerprüfung box is worth checking each year. Above them, the 25% Abgeltungsteuer is the better rate.
Foreign capital income: what isn't withheld and what to declare
German banks withhold Abgeltungsteuer automatically. Foreign accounts (Interactive Brokers, Saxo, US brokerages, foreign banks holding non-German shares) do not — but the income is still taxable in Germany and must be self-declared in Anlage KAP of the annual return.
Foreign dividends often suffer foreign withholding tax at source (e.g. US 15%, France 12.8%, Italy 26%). Germany's tax treaties typically allow you to credit foreign tax up to the treaty rate against your German Abgeltungsteuer — but you must claim this on Anlage KAP-INV. Foreign tax exceeding the treaty rate is generally not creditable; you must reclaim from the foreign tax authority directly (notoriously slow, especially for Spain and France).
Capital gains on foreign-account holdings follow the same German rules: 25% flat tax on the gain. Holding period doesn't matter (Germany has no long-term capital gains preference for shares — unlike pre-2009 rules). The Sparerpauschbetrag covers foreign income as well as German, so the same €1,000 ceiling applies to combined worldwide capital income.
Capital income tax saving from Sparerpauschbetrag
Effective rate including Soli (5.5%) but excluding church tax. The Sparerpauschbetrag (€1,000 single / €2,000 joint) exempts the first slice — only the excess is taxed.
| Annual capital income | Single — tax after €1,000 allowance | Joint — tax after €2,000 allowance |
|---|---|---|
| €500 | €0 | €0 |
| €1,000 | €0 | €0 |
| €2,000 | €264 | €0 |
| €5,000 | €1,055 | €791 |
| €10,000 | €2,374 | €2,110 |
| €20,000 | €5,011 | €4,748 |
Effective rate ≈ 26.375% (25% × 1.055 Soli). Add church tax 8–9% × 25% if applicable. Capital losses can offset gains within the same year and carry forward.
Frequently Asked Questions
How is the Abgeltungsteuer calculated?
Multiply your taxable investment income by 25%. On €4,000, the tax is €1,000, leaving €3,000 before the solidarity surcharge. The bank usually withholds it at source. Add the 5.5% solidarity surcharge (and church tax if applicable) for the full effective rate of about 26.375%.
What is the Abgeltungsteuer?
Germany's flat tax on private capital income — 25% on interest, dividends and capital gains — withheld at source by your bank or broker. It settles the tax liability for most domestic investors, so there's typically nothing further to file. It's separate from your progressive income-tax rate.
What's the real rate after surcharges?
About 26.375% with the 5.5% solidarity surcharge, which still applies in full to capital income, and roughly 28% if you also pay church tax (8–9% of the tax). This calculator shows the base 25% only, so add the surcharge (and church tax if applicable) for your true effective rate.
What is the saver's allowance?
The Sparerpauschbetrag — a tax-free amount of capital income each year, below which no Abgeltungsteuer is due. You claim it by submitting a Freistellungsauftrag to your bank so it doesn't over-withhold. Enter income after this allowance, since the tax only applies to the portion above it.
Can I pay less if my income is low?
Possibly. Through the Günstigerprüfung, you can ask for your capital income to be taxed at your personal income-tax rate instead of the 25% flat rate if that's lower — beneficial for those with low overall income. The tax office applies whichever is cheaper when you file.
References & Authoritative Sources
- Einkommensteuergesetz (EStG) §32d — Statutory rate for tax on capital income · consulted May 31, 2026 · Primary source — 25% flat rate (Abgeltungsteuer), Günstigerprüfung option
- BMF — Bundesministerium der Finanzen — Abgeltungsteuer — Sparerpauschbetrag and Freistellungsauftrag · consulted May 31, 2026 · Federal finance ministry — saver's allowance, exemption order with the bank
- Bundeszentralamt für Steuern (BZSt) — Withholding at source by German banks · consulted May 31, 2026 · Federal Central Tax Office — withholding procedure for Kapitalertragsteuer
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Methodology & Review
The tax is the rate applied to taxable investment income; the total here is the income plus the tax figure so the tax (chargeAmount) and net income are easy to read off. It models the base 25% Abgeltungsteuer and does not add the 5.5% solidarity surcharge or church tax on it, nor apply the saver's allowance (Sparerpauschbetrag) that exempts a slice of income.
Updated