Key takeaways
- German tax revenue in 2023 was 915.9 billion euros, an increase of 2.25% from the previous year.
- Total revenue of Germany in 2023 was 1860 billion euros, an increase of 6.4% from the previous year.
- German expenditure in 2023 was 1951.9 billion euros, an increase of 4.1% from the previous year.
- German deficit in 2023 was 91.9 billion euros, a decrease of 27.8% from the previous year.
- German debt in 2023 was 2.62 trillion euros, an increase of 62 billion from the previous year.
- German tax revenue collected at federal and state levels was 202.9 billion euros in Q1 2024 (excluding municipality tax revenue).
Table of Contents
Germany’s tax revenue in Q1 2024
Tax revenue in Germany in Q1 2024 was 202.9 billion euros (not considering the tax revenue from municipalities).
In Germany, taxes are collected by the Federal government (Bund), states (Länder), and municipalities (Gemeinden). In Q1 2024, 202.9 billion euros in taxes were collected at the federal and state levels. [1]
What is Germany’s tax revenue in 2023?
The German government collected 915.9 billion euros in taxes in 2023.
In Germany, taxes are collected by the Federal government (Bund), states (Länder), and municipalities (Gemeinden).
The German government redistributes part of the tax revenue to its citizens through social security benefits. The rest is used for national, state, and municipal budget purposes.
The tax revenue from the federal, state, and municipalities in 2023 is shown in the table below.
| Germany’s total tax revenue in 2023 | 915.9 billion euros |
| Tax revenue of the Federal government (Bund) | 356 |
| Tax revenue of the states (Länder) | 382.6 |
| Tax revenue of the municipalities (Gemeinden) | 143.7 |
Tax revenue of Germany over the years
The German tax revenue is increasing consistently, thanks to its strong GDP. With companies making higher profits and people earning higher wages, overall tax revenue also increases without increasing tax rates.
The table below shows the tax revenue in Germany and the percentage change over the past few years.
| Year | Tax revenue (in billion euros) | Percentage change from the previous year |
| 2023 | 915.9 | +2.25% 🟢 |
| 2022 | 895.7 | +7.5% 🟢 |
| 2021 | 833.2 | +12.64% 🟢 |
| 2020 | 739.7 | -7.4% 🔴 |
| 2019 | 799.3 | +2.96% 🟢 |
| 2018 | 776.3 | +5.69% 🟢 |
As you can see, the German tax revenue took fall in 2020. It was because of the poor performance of the German industry due to Corona.
However, the German economy recovered quickly, which led to an increase in Germany’s GDP and, thus, tax revenue.
Revenue from different types of taxes in Germany
The German authorities levy around 40 types of taxes on its residents. However, two types of taxes contribute 57.6% to the total tax revenue in Germany.
The revenue from the top four taxes makes up 74% of the total tax revenue. Here are the top four taxes that generate the most tax revenue in Germany.
- Sales tax / VAT (Steuern vom Umsatz): 291.4 billion euros
- Income tax (Lohnsteuer): 236.23 billion euros
- Trade tax (Gewerbesteuer): 75.1 billion euros
- Tax collected after people submit the income tax return (Verlangte Einkommensteuer): 73.4 billion euros
| Tax type | Tax revenue in 2023 (in billion euros) |
| Sales tax / VAT (Steuern vom Umsatz) | 291.4 |
| Income tax (Lohnsteuer) | 236.23 |
| Trade tax (Gewerbesteuer) | 75.1 |
| Tax collected after people submit their income tax return (Verlangte Einkommensteuer) | 73.4 |
| Coporate tax (Körperschaftsteuer) | 44.85 |
| Energy tax (Energiesteuer) | 36.66 |
| Unassessed taxes on income (Nicht veranlagte Steuern vom Ertrag) | 36.4 |
| Insurance tax (Versicherungsteuer) | 16.85 |
| Tobacco tax (Tabaksteuer) | 14.67 |
| Solidarity surcharge (Solidaritätszuschlag) | 12.24 |
| Real estate tax (Grunderwerbsteuer) | 12.2 |
| Car tax (Kraftfahrzeugsteuer) | 9.5 |
| Inheritance tax (Erbschaftsteuer) | 9.28 |
| Withholding tax on interest and capital gains (Abgeltungsteuer auf Zins und Veräußerungserträge) | 8.36 |
| Electricity tax (Stromsteuer) | 6.83 |
| Trade tax (Gewerbesteuerumlage) | 6.35 |
| Customs (Zölle) | 5.73 |
| Alchol tax (Alkoholsteuer) | 2.15 |
| Lottery tax (Lotteriesteuer) | 2.48 |
| Coffee tax (Kaffeesteuer) | 1.03 |
| Aviation tax (Luftverkehrsteuer) | 1.49 |
| Other taxes | 12.8 |
Tax revenue from different federal states in Germany
Nordrhein-Westfalen generates the largest tax revenue of 73.98 billion euros among all the German federal states. The next biggest tax revenue contributor is Bayern, with 54.95 billion euros in tax revenue.
Bremen has the lowest tax revenue of 4.67 billion euros. Mecklenburg-Vorpommern is next in line with 6.7 billion euros in tax revenue.
The table below summarizes the tax revenue of each German federal state. We could not find the 2023 tax revenue data of some of the states. These are marked by “*”.
| Federal state | Tax revenue (in billion euros) |
| Bayern | 54.95* |
| BadenWürttemberg | 45.62 (2023) |
| Berlin | 26.36 (2023) |
| Brandenburg | 10.54* |
| Bremen | 4.67* |
| Hamburg | 15.95* |
| Hessen | 25.22 (2023) |
| Mecklenburg-Vorpommern | 6.7* |
| Lower Saxony (Niedersachsen) | 33* |
| Rheinland-Pfalz | 33.75* |
| Saarland | 9.09* |
| Nordrhein-Westfalen | 73.98 (2023) |
| Schleswig-Holstein | 12.37* |
| Saxony | 15.85 (2023) |
| Saxony-anhalt | 8.77 (2023) |
| Thuringia | 8.4 (2023) |
How much has the German government spent?
The German government spent 1,951.9 billion euros in 2023, which was higher than its revenue of 1860 billion euros.
The expenditure and revenue of Germany is increasing consistently over time.
| Year | Revenue (in billion euros) | Expenditure (in billion euros) |
| 2023 | 1,860.0 | 1,951.9 |
| 2022 | 1,748.3 | 1,875.4 |
| 2021 | 1,629.3 | 1,762.4 |
| 2020 | 1,489.4 | 1,678.6 |
What is Germany’s deficit?
The deficit of the German government in 2023 was 91.9 billion euros. It was 35.4 billion euros less than the previous year.
A deficit is a revenue minus expenditure. A negative deficit means that a country’s expenses are greater than its income.
You can also think of a deficit as a country’s cash flow. A negative deficit means the country must borrow money to fund its schemes.
The table below summarizes Germany’s deficit over the past years.
| Year | Germany’s deficit (in billion euros) |
| 2023 | -91.9 |
| 2022 | -127.3 |
| 2021 | -133.2 |
| 2020 | -189.2 |
As you can see in the table above, Germany’s deficit is decreasing every year. It’s thanks to its strong economy and austerity programs of the government.
Debt of the German Government
The debt of the German government is €2.62 trillion euros in 2023. It’s an increase of €62 billion.
However, the positive news is that the debt ratio decreased to 63.7% in 2023. It was 66.1% in 2022.
The debt ratio is the ratio of debt to nominal gross domestic product (GDP). The decrease in the debt ratio indicates that 2023 was a strong economic year for Germany.
Source: [4]
