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Germany vs China
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡¨πŸ‡³ China
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
3–45%
Continued deduction reforms; threshold adjustments likely
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
6–13%
13%/9%/6% structure maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
25%
Pillar Two implementation progressing
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
20%
National property tax reform bill still pending
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~36%
Gradual unification of social insurance base ongoing
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡¨πŸ‡³ China β€” Provincial, Municipal & Surcharge Taxes

China's 34 provincial-level regions vary in social insurance rates (employer contributions: ~16–23% depending on province). Cities impose Urban Maintenance & Construction Tax (1–7% of VAT paid). Education surcharges add 3–5%. Local governments levy land use taxes by city tier. Free Trade Zones often have preferential 15% corporate rates.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs China: Key Tax Differences (2026)

πŸ’° Income Tax: Germany and China have similar top income tax rates (14–45% vs 3–45%).

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 6–13%).

🏒 Corporate Tax: πŸ‡¨πŸ‡³ China offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¨πŸ‡³ China taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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