WorldTax Compareโ† All Comparisons

Japan vs Germany
Tax Rate Comparison

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

๐Ÿ‡ฏ๐Ÿ‡ต Japan
vs
๐Ÿ‡ฉ๐Ÿ‡ช Germany
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
5โ€“45%
Basic deduction increase for low earners
No change
14โ€“45%
Basic allowance ~โ‚ฌ12,336; bracket creep relief
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
8โ€“10%
No rate change; digital services tax under review
No change
7โ€“19%
Standard 19% unchanged
No change
Corporate Tax Rate
Corporate Tax Rate
~30.62%
Global Minimum Tax applies to large MNCs
No change
~29%
Coalition discussions on lowering to 25% ongoing
โ–ผ -0.5pp vs 2025
Capital Gains Tax
Capital Gains Tax
20.315%
Expanded NISA (tax-free investment) ongoing
No change
25%
Investment income reform proposals under review
No change
Social Security & Payroll
Social Security / Payroll
~28.5%
Coverage expansion to part-time workers ongoing
No change
~41.5%
Health insurance rising; pension base up
โ–ฒ +0.5pp vs 2025
State, Regional & Local Taxes

๐Ÿ‡ฏ๐Ÿ‡ต Japan โ€” Prefectural & Municipal Inhabitant Tax

Japan's 47 prefectures levy inhabitant tax (ไฝๆฐ‘็จŽ) at a flat 10% on top of national income tax โ€” 4% prefectural + 6% municipal. A reconstruction special income tax of 2.1% of national tax applies through 2037. Property acquisition tax and fixed asset tax (1.4% of assessed value) are levied locally. Large cities impose additional taxes on large businesses.

๐Ÿ‡ฉ๐Ÿ‡ช Germany โ€” Trade Tax (Gewerbesteuer) & Church Tax

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

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

Japan vs Germany: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: Japan and Germany have similar top income tax rates (5โ€“45% vs 14โ€“45%).

๐Ÿ›’ VAT/Sales Tax: Germany has a higher consumption tax (8โ€“10% vs 7โ€“19%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฉ๐Ÿ‡ช Germany offers a lower corporate rate (29% vs 30.62%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ฏ๐Ÿ‡ต Japan taxes investment gains at a lower rate (20.315% vs 25%), benefiting investors.

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