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.
Advance lump sum (Vorabpauschale)
Annual advance taxation of accumulating funds, so that tax arises even without a distribution.
In plain language
Funds that reinvest their income instead of distributing it (accumulating funds) would otherwise grow tax free for decades. So that the state need not wait until you sell, a small minimum amount is assumed and taxed each year — the Vorabpauschale. It is credited when you later sell, so you do not pay twice. Important: if the fund does not rise, none arises.
In detail
Under § 18 InvStG the base yield is the redemption price at the start of the year multiplied by 70 % of the base rate. The Deutsche Bundesbank derives the base rate from the yield curve of long-dated federal securities, and the Federal Ministry of Finance publishes it annually — for 2026 it is 3,20 % (BMF circular of 13 January 2026). The Vorabpauschale is capped at the actual increase in value for the year plus distributions, and in the year of acquisition it is reduced by one twelfth for each full month before purchase. The saver's allowance and the partial exemption apply to it as they do to other investment income. It is deemed received on the first working day of the following calendar year (§ 18 (3) InvStG): the Vorabpauschale for 2026 is therefore taxed at the start of 2027, uses up the 2027 saver's allowance and is debited from the settlement account in January.
Worked example
An equity fund worth 10.000 € at the start of the year that gains 800 €: base yield = 10.000 € × 70 % × 3,20 % = 224 €. As 224 € is below the 800 € gain, the Vorabpauschale is 224 €. For an equity fund 30 % of that is exempt, leaving 156,80 € to be taxed — and that counts first against the 1.000 € saver's allowance.
In brief
Base yield = fund value × 70 % × base rate (3,20 % for 2026), capped at the increase in value and reduced by distributions.
Legal basis: § 18 InvStG · as at 2026