Who pays the solidarity surcharge in 2026?
Since the 2021 reform, approximately 90% of taxpayers are fully exempt from the solidarity surcharge. Single filers with income tax up to €20,350 (joint filers: €40,700) pay no Soli at all. Only higher earners pay, with a gradual phase-in via the Milderungszone.
What is the Milderungszone?
The Milderungszone (mitigation zone) prevents a sudden jump in Soli at the exemption threshold. When your income tax exceeds the Freigrenze, the Soli is calculated as the lesser of: 5.5% of your income tax, or 11.9% of the amount exceeding the Freigrenze. This ensures a smooth transition.
Does the Soli apply to capital gains?
Yes, the solidarity surcharge of 5.5% still fully applies to capital gains taxed under the Abgeltungsteuer (flat 25%). The Freigrenze exemption does NOT apply to capital gains — they are always subject to the full 5.5% Soli on the Abgeltungsteuer amount.
Disclaimer: These calculations are estimates based on 2025 German tax rules and should not be considered professional tax advice. Consult a Steuerberater for your specific situation.
Who still pays the Soli, how much, and when it was largely abolished
What is the Solidaritätszuschlag?
The Solidaritätszuschlag (Soli) is a 5.5% surcharge on top of your income tax, originally introduced in 1991 to fund German reunification. Since 2021, about 90% of taxpayers no longer pay it. It now only applies if your annual tax exceeds €18,130 (single) or €36,260 (married filing jointly), which means roughly €73,000 or more in gross annual salary for a single person.
How much Soli do you pay?
If your income tax exceeds the Freigrenze, the Soli is phased in gradually. From €18,130 to about €31,000 in tax, the Soli rate increases from 0% to 5.5% (Milderungszone). Above €31,000 in tax (roughly €96,000 gross salary), you pay the full 5.5%. On a €100,000 salary, the Soli is about €1,000-€1,200 per year.
Does the Soli apply to capital gains and corporate tax?
Yes, the Soli still applies in full to: Abgeltungsteuer on capital gains (making the effective rate 26.375% instead of 25%), Körperschaftsteuer (making it 15.825% instead of 15%), and income tax on non-wage income. There is no exemption threshold for corporate tax Soli. Every company and investor pays the full 5.5% surcharge.
Is the Soli constitutional?
The Bundesverfassungsgericht (Federal Constitutional Court) has been asked multiple times but has not declared it unconstitutional. Some argue it should have ended when the Solidarpakt II expired in 2019. The partial abolition in 2021 was a political compromise. Several legal challenges are pending, and the surcharge may eventually be fully abolished.
How does the Soli affect high earners specifically?
High earners above about €96,000 gross salary (single) pay the full 5.5% Soli. On a €150,000 salary, the Soli is roughly €2,500 per year. For a top earner at €300,000, it is about €7,000-€8,000. Combined with the top tax rate of 45%, the effective marginal rate becomes 47.475% — nearly half of every additional euro goes to tax.
Does the Soli show on your pay slip?
Yes, the Solidaritätszuschlag appears as a separate line item on your Gehaltsabrechnung (pay slip), below the Lohnsteuer. If your income is below the threshold, it shows as €0.00. Your employer calculates and withholds it monthly. At year-end, any overpayment is refunded through your Einkommensteuererklärung.
Bundesfinanzministerium-Aligned: Based on 2025 Bundesfinanzministerium rates and thresholds. For personal advice, speak to a qualified Steuerberater (tax adviser).
Disclaimer: This calculator provides estimates based on current German tax rates and thresholds for the 2025 tax year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax adviser before making financial decisions. Read our terms
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