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Germany vs United States
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‡ΊπŸ‡Έ United States
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
10–37%
TCJA provisions extended; no sunset
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
0–11%
No federal sales tax; state avg ~6–9%
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
21%
Federal flat; proposals to raise to 28% stalled
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~15.3%
SS wage base ~$180,000 est. 2026
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‡ΊπŸ‡Έ United States β€” State & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ 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 United States: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 10–37%). πŸ‡ΊπŸ‡Έ United States is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 0–11%).

🏒 Corporate Tax: πŸ‡ΊπŸ‡Έ United States offers a lower corporate rate (21% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡ΊπŸ‡Έ United States taxes investment gains at a lower rate (20% vs 25%), benefiting investors.

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