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Glossary · Income tax

Einkommensteuer

The progressive tax on your worldwide income if you are tax resident in Germany.

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German income tax covers seven types of income, including employment, self-employment, business, rental and investment income. The rate rises with income, starting after a tax-free allowance.

Investment income is usually taxed separately with the flat withholding tax. Foreign income can be exempt under a double tax treaty but still increase the rate on your other income.

Full guideIncome tax rates in Germany, explained

General information on German tax law, not advice on your individual case.

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