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Lesotho vs Germany
Tax Rate Comparison

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

🇱🇸 Lesotho
vs
🇩🇪 Germany
Tax Year:

💰 Personal Income Tax Calculator

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

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
No change
14–45%
Basic allowance ~€12,336; bracket creep relief
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
15%
No change
7–19%
Standard 19% unchanged
No change

Corporate Tax Rate

Corporate Tax Rate
25%
No change
~29%
Coalition discussions on lowering to 25% ongoing
-0.5pp vs 2025

Capital Gains Tax

Capital Gains Tax
Taxed as income
No change
25%
Investment income reform proposals under review
No change

Social Security & Payroll

Social Security / Payroll
N/A
No change
~41.5%
Health insurance rising; pension base up
+0.5pp vs 2025
State, Regional & Local Taxes

🇱🇸 LesothoLesotho Tax System

Lesotho is a landlocked enclave within South Africa with progressive income tax up to 35%. VAT is 15%. The country's economy is closely tied to South Africa — customs revenues from SACU (Southern African Customs Union) provide a major share of government income. Textile exports (especially to the US under AGOA) and diamond mining are key sectors. Water royalties from the Lesotho Highlands Water Project also contribute.

🇩🇪 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.

⚠️ 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.

Lesotho vs Germany: Key Tax Differences (2026)

💰 Income Tax: 🇩🇪 Germany has a higher top income tax rate (0–35% vs 14–45%). 🇱🇸 Lesotho is more favourable for high earners.

🛒 VAT/Sales Tax: Germany has a higher consumption tax (15% vs 7–19%).

🏢 Corporate Tax: 🇱🇸 Lesotho offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

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All 🇱🇸 Lesotho comparisons →All 🇩🇪 Germany comparisons →