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Germany vs United Kingdom
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‡§ United Kingdom
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
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
7–19%
Standard 19% unchanged
No change
0–20%
Standard 20% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
~29%
Coalition discussions on lowering to 25% ongoing
β–Ό -0.5pp vs 2025
19–25%
25% main rate; possible future reform discussions
No change
Capital Gains Tax
Capital Gains Tax
25%
Investment income reform proposals under review
No change
18–24%
Post-Oct 2024 rates in full effect
No change
Social Security & Payroll
Social Security / Payroll
~41.5%
Health insurance rising; pension base up
β–² +0.5pp vs 2025
~28.3%
15% employer NI; lower secondary threshold remains
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‡§ United Kingdom β€” Devolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically Β£1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

⚠️ 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 United Kingdom: Key Tax Differences (2026)

πŸ’° Income Tax: Germany and United Kingdom have similar top income tax rates (14–45% vs 0–45%).

πŸ›’ VAT/Sales Tax: United Kingdom has a higher consumption tax (7–19% vs 0–20%).

🏒 Corporate Tax: πŸ‡¬πŸ‡§ United Kingdom offers a lower corporate rate (25% vs 29%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡¬πŸ‡§ United Kingdom taxes investment gains at a lower rate (24% vs 25%), benefiting investors.

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