Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Flat-rate tax on investment income (Abgeltungsteuer)
A flat 25 % tax on interest, dividends and price gains; the bank withholds it, which settles the tax.
In plain language
On investment income — interest, dividends, gains from selling securities — you do not pay your personal tax rate but a flat 25 %. The bank deducts the tax straight away and passes it to the tax office; as a rule you then no longer have to declare this income in your tax return. The first 1.000 € a year stays tax-free if you have given the bank an exemption order (Freistellungsauftrag). Anyone whose personal tax rate is below 25 % can reclaim the difference through the tax return.
In detail
Under § 32d (1) sentence 1 EStG the income tax on investment income is 25 %. On top comes the solidarity surcharge of 5,5 % of the tax — here with no exemption limit — 26,375 % in all. Where church tax applies, the Abgeltungsteuer is reduced by a quarter of the church tax attributable to the investment income: the tax is then e ÷ (4 + k), with e for the income and k for the church tax rate as a decimal (§ 32d (1) sentences 3 to 5). The withholding settles the income tax (§ 43 (5)). On application the tax office checks whether your personal rate would be more favourable (§ 32d (6)).
Worked example
3.000 € of interest in a year, single, no church tax: after the saver's allowance 2.000 € remains taxable. That attracts 500,00 € of Abgeltungsteuer and 27,50 € of solidarity surcharge, 527,50 € in all. With 9 % church tax it is 488,99 € of Abgeltungsteuer, 26,89 € of solidarity surcharge and 44,00 € of church tax — 559,88 € in all.
In brief
25 % plus a 5,5 % solidarity surcharge on it, 26,375 % in all; slightly more with church tax.
Legal basis: § 32d (1), § 43 (5) EStG · as at 2026