Question 1

How high is German capital gains tax in 2026?

Accepted Answer

The capital gains tax (flat tax, Abgeltungsteuer) is 25 % on investment income above the saver's allowance. On top come a 5.5 % solidarity surcharge on the tax and, if applicable, 8 % or 9 % church tax. Without church tax the total burden is 26.375 %, with 9 % church tax about 27.99 %.

Question 2

How high is the saver's allowance?

Accepted Answer

Since 2023 the saver's allowance (Sparer-Pauschbetrag) is €1,000 per person and €2,000 for jointly assessed married couples and civil partners (§ 20 (9) EStG). Capital income up to that amount stays tax-free. For your bank to apply it, you file an exemption order (Freistellungsauftrag).

Question 3

How is church tax on capital income calculated?

Accepted Answer

Church tax is deductible, so the capital gains tax is reduced by the formula e / (4 + k), where k is the church tax rate. With 9 % church tax the capital gains tax is 24.45 % instead of 25 %. On top come 9 % church tax and 5.5 % solidarity surcharge, about 27.99 % in total.

Question 4

Is there a solidarity surcharge on the flat tax even though it was abolished?

Accepted Answer

Yes. In 2021 the surcharge was only abolished for about 90 % of wage and income tax payers through a high threshold. That threshold does not apply to the flat tax. The bank always withholds 5.5 % on the capital gains tax. People with low income can reclaim part of it via the favourability test.

Question 5

When does the favourability test pay off?

Accepted Answer

The favourability test under § 32d (6) EStG pays off if your personal tax rate on the capital income is below the flat tax of 26.375 % (incl. surcharge). Because normal incomes pay no solidarity surcharge on the regular income tax, the 2026 threshold without church tax is a taxable income of about €25,000 including capital income (couples about €50,000). The tax office then automatically checks which option is cheaper. You apply for it in Annex KAP.

Question 6

What is the partial exemption for ETFs?

Accepted Answer

For investment funds, part of the income stays tax-free to compensate for tax at fund level (§ 20 InvStG). For private investors: equity funds 30 %, mixed funds 15 %, real estate funds 60 % and foreign real estate funds 80 %. For an equity ETF, only 70 % of distributions and gains are taxed.

Question 7

How are losses from shares offset?

Accepted Answer

Losses from selling individual shares go into the share loss pot and may only be offset against gains from share sales, not against dividends or interest. All other losses (bonds, funds, certificates, derivatives) go into the general pot and are offset against all positive capital income. Unused losses are carried forward by the bank.

Question 8

What is a non-assessment certificate?

Accepted Answer

With a non-assessment certificate (NV-Bescheinigung) the tax office confirms that you are unlikely to owe income tax because your income is below the basic allowance (2026: €12,348). Your bank then pays all capital income without tax deduction, even above the saver's allowance. It is valid for up to three years and requested informally from the tax office.

Question 9

What is the advance lump sum and how high is it in 2026?

Accepted Answer

The advance lump sum (Vorabpauschale) taxes accumulating funds even if nothing is distributed. It equals the fund value at the start of the year × base rate × 70 %, capped at the actual gain in value plus distributions (§ 18 InvStG). With the 2026 base rate of 3.20 % that is 2.24 % of the fund value; equity funds also get the partial exemption. The tax is debited in early January 2027.

Guide: Capital Gains Tax Calculator

German Capital Gains Tax 2026: How the Flat Tax Works

Exemption Order (Freistellungsauftrag): How to Use Your €1,000 in Full

Favourability Test: When Your Personal Tax Rate Beats 25 %

Partial Exemption for ETFs and Funds: 30, 15, 60 or 80 % Tax-Free

Offsetting Capital Losses in Germany: Share Pot, General Pot and Loss Certificate

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