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Germany vs Bosnia and Herzegovina
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡©πŸ‡ͺ Germany
vs
πŸ‡§πŸ‡¦ Bosnia and Herzegovina
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
14–45%
Basic allowance ~€12,336; bracket creep relief
No change
10–13%
EU accession reforms; possible unified system discussion
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
17%
17% stable
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
10%
10% attractive to FDI; reform discussions
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
10%
10% flat
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~41.5%
Harmonization with EU social security rules underway
No change
State, Regional & Local Taxes

πŸ‡©πŸ‡ͺ Germany β€” Trade Tax (Gewerbesteuer) & Church Tax

Germany's 16 BundeslΓ€nder apply federal income tax rates uniformly β€” no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7–17% effective. Church tax (Kirchensteuer) of 8–9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.

πŸ‡§πŸ‡¦ Bosnia and Herzegovina β€” Entity & Cantonal Taxes

Bosnia and Herzegovina has one of the most fragmented tax systems in the world due to its Dayton Agreement structure. The two entities β€” Federation of BiH (FBiH) and Republika Srpska (RS) β€” have separate income tax, and FBiH further divides into 10 cantons that set their own rates. RS has a flat 10% income tax. FBiH has a 10% flat tax at the entity level but cantons add surtaxes of 0%–30% of the income tax. Brcko District has its own tax administration. VAT and customs are administered federally.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Germany vs Bosnia and Herzegovina: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 10–13%). πŸ‡§πŸ‡¦ Bosnia and Herzegovina is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 17%).

🏒 Corporate Tax: πŸ‡§πŸ‡¦ Bosnia and Herzegovina offers a lower corporate rate (10% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡§πŸ‡¦ Bosnia and Herzegovina taxes investment gains at a lower rate (10% vs 25%), benefiting investors.

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