Capital Gains Tax Calculator for Germany – 2026 Edition

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This guide explains German capital gains tax using the core rules that matter for private investors, including the withholding tax, solidarity surcharge, church tax, the saver’s allowance, exemption orders, loss offsetting, foreign broker reporting, and ETF-specific concepts such as partial exemptions and prepayment flat-rate. We clearly separate calculator estimates from the final tax treatment determined by your broker, the German Income Tax Act, and the tax office.

How does the flat rate tax calculator work?

You can easily calculate your final withholding tax with the final withholding tax calculator. To achieve this, you only need to specify how much your investment income is before tax, whether you pay church tax, and which tax allowance should be considered.

You will be able to see the tax burden calculation and the income after taxes are deducted directly. Additionally, the final withholding tax calculator breaks down the tax burden attributable to the solidarity surcharge and the church tax.

The maximum saver’s allowance that can be entered is €1,000 for a single person or €2,000 for married couples filing jointly. Older limits such as €801 or €1,602 no longer apply.

Using the final withholding tax calculator is anonymous, and your data will not be stored.

What is the final withholding tax?

The flat rate withholding tax is levied at a fixed rate and paid to the tax office at the source of the income, by the bank or broker that generated the investment income.

Investment income subject to the final withholding tax can be interest on investments, dividends, gains from securities transactions, or income from some insurance contracts. Certain capital income is taxed differently or may fall outside the standard withholding system. Section 43 of the Income Tax Act outlines which types of capital income are subject to withholding. Withholding exceptions, exemption orders, and non-assessment certificates are mainly regulated under Section 44a EStG.

Income subject to the final withholding tax:

• Dividends from shares or other securities
• Gains from shares or other securities
• Gains from certificates, ETFs, or funds
• Interest, e.g. from checking accounts, fixed-term deposits, savings accounts, or bonds

Income that is not always subject to the final withholding tax:

• Loan agreements not issued by a credit institution, such as some business or personal loans
• Interest from mortgages, land charges, and annuities from pension debts
• Certain insurance or endowment policies
• Disposals of a silent partnership
• Foreign currency transactions, depending on the holding period and circumstances

Since the final withholding tax has only been in place since 2009, shares purchased before the end of 2008 can be subject to special grandfathering rules. For these shares or securities, the legal regulation in effect before January 1, 2009, may still be relevant.

Personal tax rate on capital gains

There is also the option to calculate capital gains tax based on your personal income tax rate, which can be advantageous if your income is otherwise low and your tax rate is well below 25%. In such a case, you can apply for taxation according to the personal tax rate on your tax return. This is done as part of a favorable tax assessment (Günstigerprüfung). However, only some taxpayers benefit from this route.

If the final withholding tax is subject to the separate tax rate under Section 32d EStG for income from capital assets, it amounts to a uniform 25% plus the solidarity surcharge. Additionally, church tax is applied if applicable, because capital income is subject to church tax. If you do not pay church tax, you do not have to pay it on your investment income.

The bank automatically pays the final withholding tax to the tax office, and the taxpayer receives a tax certificate or statement. You may declare the income and the tax already paid in your income tax return if needed, for example for a favorable tax assessment, foreign withholding tax, loss offsetting, or corrections.

Foreign brokers and Anlage KAP

If you use a German bank or broker, capital gains tax is usually withheld automatically. If you use a foreign broker, this often does not happen. In that case, taxable investment income may need to be declared in your German tax return using Anlage KAP.

This can apply to foreign dividends, interest, ETF income, capital gains, and foreign withholding tax credits. Expats with accounts outside Germany should therefore keep annual broker statements, dividend statements, withholding tax documents, and transaction records.

No omission of the solidarity surcharge in the final withholding tax

Although the solidarity surcharge has been largely abolished for many taxpayers on regular income tax, this relief does not apply in the same way to investment income from private assets. Thus, the solidarity surcharge continues to be added to the final withholding tax.

For 2026, the solidarity surcharge exemption threshold for regular income tax is based on the amount of income tax owed: €20,350 for single filers and €40,700 for married couples filing jointly. This is roughly equivalent to a much higher taxable income level, but the legal threshold is based on the assessed income tax amount. This relief does not remove the solidarity surcharge from the 25% capital gains tax.

Using the saver’s allowance

Investors have an annual allowance for investment income, known as the saver’s lump sum (Sparer-Pauschbetrag). This is €1,000 per year for a single person and €2,000 for married couples filing jointly.

For the saver’s lump sum to be considered automatically, an exemption order (Freistellungsauftrag) must be submitted to the bank, financial company, or broker from which you generate investment income. It is also possible to split the allowance between several providers.

Investors also need to know that they can offset losses from capital investments against gains. However, losses from share transactions can generally only be offset against gains from share transactions. Offsetting losses and gains across asset classes is restricted.

ETFs, funds, and modern investment taxation

ETFs and mutual funds can involve additional German tax rules. Two concepts are especially important:

• Partial exemption: Some funds receive a partial tax exemption (Teilfreistellung) depending on the type of fund. For example, equity funds can qualify for a partial exemption on taxable gains and distributions.
• Prepayment flat-rate: Accumulating funds may trigger a taxable prepayment amount called Vorabpauschale, even if no cash distribution is paid out.

These rules mean that the taxable amount shown by your broker may be lower or different from the fund’s raw gain or distribution. The calculator is therefore best used for a general estimate of tax on taxable capital income, while ETF and fund taxation should be checked against your broker statement and tax certificate.

Calculation of the final withholding tax

The final withholding tax rate is 25%. In practice, the total tax burden is higher because surcharges can apply.

The solidarity surcharge is 5.5% of the capital gains tax amount. This means it is calculated on the 25% tax, not as an additional 25% charge.

Church tax is also calculated on the capital gains tax if applicable. The church tax rate is generally 9%, or 8% in Bavaria and Baden-Württemberg.

Thus, the capital gains tax including surcharges is generally:

• 26.375% if no church tax applies
• around 27.82% if 8% church tax applies
• around 27.99% if 9% church tax applies

The exact effective rate with church tax is slightly reduced because German tax law accounts for church tax in the calculation base. In simple terms, church tax on capital income is treated in a way that reduces the effective withholding base. This is why the final rates with church tax are not simply 25% + 1.375% solidarity surcharge + 2.00% or 2.25% church tax. Depending on the church tax rate, the effective capital gains tax base is reduced to about 24.51% with 8% church tax or about 24.45% with 9% church tax before the surcharges are combined.

The effective church tax burden on the capital gain is therefore also slightly lower than a simple 8% or 9% applied directly to the gain. It is roughly 1.96% of the taxable gain in Bavaria and Baden-Württemberg, or roughly 2.20% in other federal states.

Example calculation

The tax is due only on capital gains above the saver’s lump sum. This is the income or gain, not the total investment amount.

For example, assume a single taxpayer has €5,000 in taxable investment income and has not used any of their €1,000 saver’s allowance.

The saver’s allowance reduces the taxable amount from €5,000 to €4,000. It does not reduce the payout itself. The correct net return is therefore gross investment income minus total tax.

Small interest income example

If a fixed-term deposit pays a 2.5% return, a single taxpayer with an unused €1,000 saver’s allowance would not owe capital gains tax until the investment income exceeds €1,000.

For example, an investment of €32,500 at 2.5% produces €812.50 of interest. This is fully covered by the €1,000 saver’s allowance, so the tax due is €0.00.

To show when tax starts to apply, assume an investment of €45,000 at a 2.5% return. This produces €1,125 of interest. After deducting the €1,000 saver’s allowance, €125 remains taxable. Without church tax, the tax is about €32.97 at an effective rate of 26.375%.

Conclusion

The capital gains tax calculator Germany helps estimate how much tax may be due on private investment income. The standard calculation starts with the taxable investment income, subtracts the saver’s allowance, then applies the 25% flat tax plus solidarity surcharge and, where relevant, church tax.

Use the calculator as a planning estimate. For ETFs, mutual funds, foreign brokers, loss offsetting, foreign withholding tax, or unusual investment structures, check your broker’s tax certificate or speak with a German tax advisor.

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