Church tax on investment income (Kirchensteuer)
Church members in Germany also pay church tax on interest, dividends and capital gains, at 8 or 9 %.
In short
As of 8 October 2026Church members in Germany also pay church tax on interest, dividends and capital gains: 8 % of the capital gains tax in Bavaria and Baden-Württemberg, 9 % elsewhere. Together with capital gains tax and solidarity surcharge the burden is just under 28 %. Banks check church membership automatically and deduct the tax. If you block that check, you declare the income in your tax return.
If you belong to a church that levies tax in Germany, church tax (Kirchensteuer) is also due on investment income. It is 8 % of the capital gains tax in Bavaria and Baden-Württemberg and 9 % elsewhere. Including solidarity surcharge, the total burden is about 27.82 % (8 %) or 27.99 % (9 %), so just under 28 %.
Your bank automatically queries your church membership at the Federal Central Tax Office and deducts the tax directly. If you blocked this query, declare the income in your tax return. Income up to your saver's allowance stays fully tax-free.
Example: you have a 2,000 euro gain, 1,000 euros of it covered by your tax exemption order. On the other 1,000 euros you pay about 280 euros with 9 % church tax instead of 264 euros. More in the chapter on taxes on stocks.
Related terms
Sources
- Einkommensteuergesetz (EStG), § 51a Zuschlagsteuern
- Einkommensteuergesetz (EStG), § 32d Gesonderter Steuertarif
As of 8 October 2026 · Educational content, not investment or tax advice.