Germany's 2022 Top Tax Rate Applies to 7.4% of Earners, Contributes Half of Income Tax Revenue

The Federal Statistical Office reported that in 2022 about 3.2 million taxpayers – 7.4 % of all unlimited‑tax‑liable individuals in Germany – were subject to the 42 % top marginal income‑tax rate. Their average annual earnings were €196,000.

These taxpayers generated €621 billion of total income (roughly 30 % of all earnings) and contributed €186 billion, i.e., 49 % of the entire income‑tax takings. The threshold for the top rate was €58,597 for single filers (or €117,194 for joint assessment). Approximately 141 000 of the top‑rate payers earned more than €277,826 (€555,652 for joint filers).

The share of taxpayers in the top bracket has risen from 5.4 % in 2012 to 7.4 % in 2022, while their contribution to the tax base grew from 42 % to 49 % of total income‑tax revenue. Total taxable income of all German taxpayers in 2022 reached €2.1 trillion, up 6.5 % year‑on‑year. Combined wage‑tax and income‑tax collected amounted to €376 billion, a €19 billion increase over 2021.