Taxes on private insurance (Versicherungssteuer)

Taxes on private insurance (Versicherungssteuer) in Germany
(Versicherungssteuer – Insurance Tax)

What is Versicherungssteuer?

The Versicherungssteuer is a tax levied by the German state on private insurance premiums. It is classified as an indirect tax.

• It is different from income tax and from value added tax (VAT / MwSt).

• It is automatically added to the insurance premium and paid by the insurance company directly to the tax office (Finanzamt).

Which types of insurance are subject to this tax?

Most private insurance policies are subject to Versicherungssteuer, for example:

Which types of insurance are exempt from Versicherungssteuer?

How high is the Versicherungssteuer rate?

• Standard rate: 19% of the insurance premium.

• It is included automatically in the total amount you pay.

You generally cannot reclaim this tax directly, unlike income tax; it is usually not refundable as such.

Does it appear on the invoice?

Yes.
In your insurance policy documents or payment statements, you will usually see a line such as:

• „Versicherungssteuer enthalten“ (insurance tax included)
  or

• „zzgl. 19 % Versicherungssteuer“ (plus 19% insurance tax)

Practical example:

Is Versicherungssteuer tax-deductible in the tax return?

• Yes, partly, but only if the insurance is connected to your income or professional activity.
  Examples: professional liability insurance, some types of legal expenses insurance for freelancers or self-employed.

• Purely private insurances (such as standard travel insurance or household insurance) are not always or only very limited tax-deductible.

Key terms:

Conclusion:

• Versicherungssteuer is a 19% tax levied on many private insurance premiums in Germany.

• It does not apply to social insurance schemes (statutory health, pension, unemployment insurance).

• It is withheld automatically as part of the premium and is not directly refundable.

• Some job-related or professional insurance policies can be partially deducted as expenses in the German tax return (Steuererklärung), depending on individual circumstances.

The editorial team of this website strives to provide accurate information based on thorough research and multiple sources. However, errors or incomplete details cannot be ruled out. Therefore, please regard this article as an initial guide only and always consult a qualified tax adviser or the competent authorities for binding and up-to-date information.