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Germany vs Pakistan
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‡° Pakistan
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
0–35%
IMF fiscal consolidation; rate structure maintained
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
18%
18% GST; digitalization of tax collection progressing
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
29%
29% stable; FDI incentives in SEZs
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
15%
CGT unchanged; real estate documentation improving
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~12%
EOBI; provincial systems varying
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‡° Pakistan β€” Provincial Sales Taxes & Levies

Pakistan's 4 provinces (Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan) levy their own sales tax on services at 13%–16%, separate from federal GST on goods. Agricultural income tax is exclusively provincial, though poorly collected. Sindh has the most developed provincial tax authority (SRB). Urban immovable property tax is provincial. Development surcharges and cess taxes vary by province. The FBR (Federal Board of Revenue) administers national taxes.

⚠️ 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 Pakistan: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡©πŸ‡ͺ Germany has a higher top income tax rate (14–45% vs 0–35%). πŸ‡΅πŸ‡° Pakistan is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Germany has a higher consumption tax (7–19% vs 18%).

🏒 Corporate Tax: Corporate rates are similar in both countries (~29% vs 29%).

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡° Pakistan taxes investment gains at a lower rate (15% vs 25%), benefiting investors.

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