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Germany vs Denmark
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‡° Denmark
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
~55.9%
Among world's highest; stable
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
25%
No change; EU digital VAT rules expanding
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
22%
Stable; defence spending debate may affect future rates
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
27–42%
Progressive rates maintained
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~8%
Labour market contributions stable
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‡° Denmark β€” Municipal Income Tax

Denmark's 98 municipalities set local income tax (kommuneskat) at ~22.8%–27.8%. The national state tax adds 15% (top bracket). Combined rates including AM contribution (8% of gross) make Denmark one of the world's highest-tax nations at ~55–56% effective top. Church tax (~0.7%) applies to members. Property value tax is nationally set.

⚠️ 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 Denmark: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡° Denmark has a higher top income tax rate (14–45% vs ~55.9%). πŸ‡©πŸ‡ͺ Germany is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Denmark has a higher consumption tax (7–19% vs 25%).

🏒 Corporate Tax: πŸ‡©πŸ‡° Denmark offers a lower corporate rate (22% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡©πŸ‡ͺ Germany taxes investment gains at a lower rate (25% vs 42%), benefiting investors.

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