What is Abgeltungsteuer?

Abgeltungsteuer (Withholding tax) is a 25% flat tax on capital income: interest, dividends, capital gains from selling securities. The tax is withheld at source by German banks. Plus Solidaritaetszuschlag 5.5% = effective 26.375%.

What is the Sparer-Pauschbetrag?

The tax-free allowance for capital income is 1,000 EUR per person (2,000 EUR for married couples) since 2023. Below this threshold, no Kapitalertragsteuer is due. File a Freistellungsauftrag with your bank.

Can I opt for progressive taxation instead?

The Guenstigerpruefung (favorable check) allows applying your personal income tax rate instead of 25% if your marginal rate is below 25%. Common for low-income retirees. Claimed via Anlage KAP in the annual return.

Are foreign dividends subject to Abgeltungsteuer?

Yes. Foreign dividends received by German tax residents are subject to 25% Abgeltungsteuer. Foreign withholding taxes (e.g., US 15%) are credited against the German tax liability.

How are loss carryforwards handled?

Capital losses are automatically tracked by German banks. Losses from one account can be offset against gains in the same account. Cross-account offsetting requires an Verlustverrechnungstopf application to the tax office via the annual return.

Germany Kapitalertragsteuer (Capital Gains / Withholding Tax) Calculator

Calculate German Abgeltungsteuer (25% flat tax) on dividends, interest, and capital gains from investments. Plus Solidaritaetszuschlag (5.5%) and church tax if applicable. Effective rate: 26.375% (no church tax).

Principal ($)

Annual Rate (%)

Years

Compounding / Year

$ Finance Disclaimer: These calculators are for educational and illustrative purposes only. Results do not constitute financial advice. Consult a licensed financial advisor before making investment or borrowing decisions.

How It Works

Each component has a specific meaning:

Investments — The investments recorded for the scenario being assessed.

Note: Interpret the germany kapitalertragsteuer result against the thresholds and context described above.

How to Use

Enter the investments for the scenario you are assessing. Calculate German Abgeltungsteuer (25% flat tax) on dividends, interest, and capital gains from investments. Plus Solidaritaetszuschlag (5.5%) and church tax if applicable. Effective rate: 26.375% (no church tax). Use the germany kapitalertragsteuer result to inform your calculation.

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Frequently Asked Questions

What is Abgeltungsteuer?

What is the Sparer-Pauschbetrag?

Can I opt for progressive taxation instead?

Are foreign dividends subject to Abgeltungsteuer?

How are loss carryforwards handled?