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Study: Germans Paying Record High in Taxes and Social Contributions

Publication date: 2025-12-05

A new study by the German Economic Institute in Cologne reveals that Germany’s tax and social contribution rate will reach 41.5% of GDP by the end of 2025, the highest level ever recorded.

In 2024, the rate stood at 40.2%. Forecasts suggest a slight decline to 41.4% in 2026.

The increase is driven by rising government spending on defense, infrastructure, and social security systems such as pensions, healthcare, and unemployment insurance.

The institute projects minimal economic growth of just 0.1% in 2025, with a modest recovery to 0.9% in 2026.

Sources - Agencies

 
A new study by the German Economic Institute in Cologne reveals that Germany’s tax and social contribution rate will reach 41.5% of GDP by the end of 2025, the highest level ever recorded.
In 2024, the rate stood at 40.2%. Forecasts suggest a slight decline to 41.4% in 2026.
The increase is driven by rising government spending on defense, infrastructure, and social security systems such as pensions, healthcare, and unemployment insurance.
The institute projects minimal economic ...