Germany vs Japan
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
π° Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country β side by side.
π©πͺ 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 ~7β17% effective. Church tax (Kirchensteuer) of 8β9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
π―π΅ Japan β Prefectural & Municipal Inhabitant Tax
Japan's 47 prefectures levy inhabitant tax (δ½ζ°η¨) at a flat 10% on top of national income tax β 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.
Germany vs Japan: Key Tax Differences (2026)
π° Income Tax: Germany and Japan have similar top income tax rates (14β45% vs 5β45%).
π VAT/Sales Tax: Germany has a higher consumption tax (7β19% vs 8β10%).
π’ Corporate Tax: π©πͺ Germany offers a lower corporate rate (29% vs 30.62%), which can influence business location decisions.
π Capital Gains: π―π΅ Japan taxes investment gains at a lower rate (20.315% vs 25%), benefiting investors.