Malaysia vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ฒ๐พ Malaysia โ State & Local Authority Taxes
Malaysia's 13 states and 3 federal territories have limited independent taxing powers. States levy quit rent (cukai tanah) on land, assessment rates (cukai pintu/taksiran) on property through local councils, and royalties on natural resources. Petroleum royalties are a major state revenue in Sabah, Sarawak, and Terengganu. Local councils (majlis perbandaran) levy property assessment at 6%โ12% of estimated annual rental value. No state income taxes exist โ this is federal.
๐ฉ๐ช 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 ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Malaysia vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (0โ30% vs 14โ45%). ๐ฒ๐พ Malaysia is more favourable for high earners.
๐ VAT/Sales Tax: Germany has a higher consumption tax (10% vs 7โ19%).
๐ข Corporate Tax: ๐ฒ๐พ Malaysia offers a lower corporate rate (24% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ฉ๐ช Germany taxes investment gains at a lower rate (25% vs 30%), benefiting investors.