WorldTax CompareAll Comparisons

Germany vs Finland
Tax Rate Comparison

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

🇩🇪 Germany
vs
🇫🇮 Finland
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
~44–51.4%
Consolidation budget; high rates maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
10–25.5%
25.5% standard (raised 2024) maintained
No change

Corporate Tax Rate

Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025
20%
20% stable; R&D deduction enhanced
No change

Capital Gains Tax

Capital Gains Tax
25%
Investment income reform proposals under review
No change
30–34%
CGT rates unchanged
No change

Social Security & Payroll

Social Security / Payroll
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
~36%
Austerity measures affecting some social contributions
No change
State, Regional & Local Taxes

🇩🇪 GermanyTrade Tax (Gewerbesteuer) & Church Tax

Germany's 16 Bundesländer apply federal income tax rates uniformly — 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.

🇫🇮 FinlandMunicipal Income Tax

Finland's 309 municipalities set their own income tax rates (municipal tax) ranging from ~16.5% to ~22.5%, averaging ~20%. This is added to the national progressive income tax. The church tax of 1%–2.2% applies to members. No regional income tax. The 'solidarity tax' on high earners (2%) applies nationally. Municipalities also levy real estate tax on property owners. The welfare state is heavily funded by these high combined tax 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 Finland: Key Tax Differences (2026)

💰 Income Tax: 🇫🇮 Finland has a higher top income tax rate (14–45% vs ~44–51.4%). 🇩🇪 Germany is more favourable for high earners.

🛒 VAT/Sales Tax: Finland has a higher consumption tax (7–19% vs 10–25.5%).

🏢 Corporate Tax: 🇫🇮 Finland offers a lower corporate rate (20% vs 29%), which can influence business location decisions.

📈 Capital Gains: 🇩🇪 Germany taxes investment gains at a lower rate (25% vs 34%), benefiting investors.

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