Tax Rate in Germany currently lower than it was three decades ago

A recent study revealed that the average tax burden in Germany has significantly attenuated compared to the 1980’s.

The study was conducted by the Ifo Institute where the researchers undertook critical analysis of the evolution of the average burden of earned income through income tax. It was observed that the solidarity surcharge had significantly decreased.

The study showed that an unmarried individual earning the equivalent of 30,000 euros annually 35 years ago would have given 36.1% of their salary to the government in the form of income tax and social security contributions. The figure stood att 34.7 percent in 2011 and currently stands at 32 percent.

Individuals in high tax brackets earning the equivalent of 70,000 euros in annual income, would have aid 46.9 percent to the tax authorities 35 years ago. The figure currently stands at 41 percent.

In the same vein, those with annual incomes of 100,000 euros now pay 43.4 percent in taxes compared to 48.7 percent 35 years ago.

The Ifo Institute attributed this trend to the concomitant tax reforms in Germany as well as the frequent rise in the basic tax-free allowance.

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