German flat tax on investment income — with the saver's allowance

Sources and assumptions

• gesetze-im-internet.de — EStG § 32d Abs. 1 Satz 1 — tax year 2026, verified on September 21, 2026

  Excerpt from the source : « Die Einkommensteuer für Einkünfte aus Kapitalvermögen, die nicht unter § 20 Absatz 8 fallen, beträgt 25 Prozent. »

• gesetze-im-internet.de — EStG § 20 Abs. 9 Satz 1 — tax year 2026, verified on September 21, 2026

  Excerpt from the source : « Bei der Ermittlung der Einkünfte aus Kapitalvermögen ist als Werbungskosten ein Betrag von 1 000 Euro abzuziehen (Sparer-Pauschbetrag); der Abzug der tatsächlichen Werbungskosten ist ausgeschlossen. »

• gesetze-im-internet.de — EStG § 20 Abs. 9 Satz 2 — tax year 2026, verified on September 21, 2026

  Excerpt from the source : « Ehegatten, die zusammen veranlagt werden, wird ein gemeinsamer Sparer-Pauschbetrag von 2 000 Euro gewährt. »

Calculation assumptions

• Excludes church tax, which reduces the tax under the formula in EStG s. 32d(1) sentence 4.
• Excludes the solidarity surcharge, which is levied on top of the flat tax.
• Excludes the favourability test (EStG s. 32d(6)): with low total income, the progressive rate may be lower.
• Not modelled: loss offsetting (EStG s. 20(6)) and the partial exemption of fund income (InvStG s. 20). The calculator taxes the amount entered in full — so enter the income already after offsetting realised losses and without the tax-exempt part of fund income; gross income leads to too high a tax.
• Only capital income subject to the flat-rate tax: where it belongs to income from agriculture and forestry, a trade or business, self-employment or letting, it is attributed to that income (EStG s. 20(8)) and the 25 per cent rate does not apply (EStG s. 32d(1) sentence 1). Nor does it apply in the cases of EStG s. 32d(2) — for instance interest paid by a corporation to a shareholder holding at least 10 per cent, to the extent it is a business expense there. Such income does not belong in the input.