What is the solidarity surcharge (Solidaritätszuschlag / “Soli”)?
The solidarity surcharge, usually called “Soli”, is an additional tax on top of income tax.
It was introduced by the German government in 1991 to help finance:
the reconstruction of the eastern federal states (former East Germany),
and major infrastructure projects after German reunification.
Originally it was not intended to be permanent, but it has been in place for decades.
Rate: 5.5 % of your income tax (Einkommensteuer)
Important: It is not taken directly from your income,
but calculated only on the income tax amount itself.
Example:
You pay €10,000 in income tax →
Soli = 5.5 % of €10,000 = €550
No – not since 2021.
From 2021 onwards, the solidarity surcharge was abolished for the vast majority of taxpayers.
| Group | Do they pay Soli? |
|---|---|
| Most employees with average income | No – they are exempt |
| High-income earners | Yes, partially or fully |
| Corporations (e.g. GmbH, AG) | Yes, fully |
There is a progressive exemption threshold (Freigrenze):
If your annual income tax bill is below roughly €17,000
(about €73,000 taxable income per year for a single person as a rough guide),
you do not pay solidarity surcharge anymore.
You can see it clearly on:
your payslip (Lohnabrechnung), or
your tax assessment notice (Steuerbescheid)
It is listed separately under the name “Solidaritätszuschlag”.
Yes.
Corporations such as:
GmbH
AG
are still required to pay the surcharge in full.
In their case، it is calculated on the corporation tax (Körperschaftsteuer) at 5.5 %.
Solidaritätszuschlag: solidarity surcharge (5.5 % of income/corporation tax)
Freigrenze: exemption threshold below which no surcharge is payable
Steuerbescheid: tax assessment notice
Körperschaftsteuer: corporation tax on company profits
Einkommensteuer: income tax on individuals’ earnings
The editorial team of our website aims to provide accurate information based on careful research and multiple sources. However, errors may occur or some details may not be fully confirmed. Please regard this article as an initial orientation only and always contact the competent tax office or a professional tax advisor for binding and up-to-date information.
