WorldTax Compareโ† All Comparisons

Germany vs Iraq
Tax Rate Comparison

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

๐Ÿ‡ฉ๐Ÿ‡ช Germany
vs
๐Ÿ‡ฎ๐Ÿ‡ถ Iraq
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14โ€“45%
Basic allowance ~โ‚ฌ12,336; bracket creep relief
No change
3โ€“15%
15% top; non-oil revenue diversification priority
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7โ€“19%
Standard 19% unchanged
No change
0%
VAT introduction possible; IMF recommendations
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
โ–ผ -0.5pp vs 2025
15%
15%; diversification investment incentives
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
15%
15% nominal
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
โ–ฒ +0.5pp vs 2025
~25%
SSIF reform; pension adequacy improving
No change
State, Regional & Local Taxes

๐Ÿ‡ฉ๐Ÿ‡ช Germany โ€” Trade Tax (Gewerbesteuer) & Church Tax

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

๐Ÿ‡ฎ๐Ÿ‡ถ Iraq โ€” Governorate Taxes

Iraq's 18 governorates (muhafazat) have limited independent taxing powers under the federal system. The Kurdish Region of Iraq (KRI โ€” Erbil, Sulaymaniyah, Dohuk) has its own tax administration and revenue share arrangement with Baghdad. The Federal Board of Supreme Audit and Tax Commission administer national taxes. Oil revenues dominate the Iraqi budget (~90% of government revenue), meaning formal taxation plays a smaller role than in most countries. Reconstruction and diversification remain key challenges.

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

Germany vs Iraq: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฉ๐Ÿ‡ช Germany has a higher top income tax rate (14โ€“45% vs 3โ€“15%). ๐Ÿ‡ฎ๐Ÿ‡ถ Iraq is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Germany has a higher consumption tax (7โ€“19% vs 0%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡ถ Iraq offers a lower corporate rate (15% vs 29%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฎ๐Ÿ‡ถ Iraq taxes investment gains at a lower rate (15% vs 25%), benefiting investors.

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