Income tax in Germany 2026: the section 32a scale, Wohnsitz and the six-month stay

In Germany the first test is not a total of days. Section 1 of the Income Tax Act (EStG) subjects to unlimited tax any individual with a Wohnsitz or habitual abode in the country. Under section 8 of the Fiscal Code (AO), a Wohnsitz exists where someone holds a dwelling under circumstances suggesting they will keep and use it: no set number of nights is required, and the text does not ask for ownership. Habitual abode, in section 9 AO, comes next: it exists where someone stays in circumstances showing they are not just passing through, and a continuous stay of more than six months always counts, from its very start, with brief interruptions disregarded. That "from the start" matters, as the seventh month brings the first six into it too. One exception protects purely private stays, for a visit, recreation or a cure, if they last no longer than a year.

The 2026 scale: a formula, not bands

The scale rises progressively between €12,348 and €69,878; 42% and 45% are the flat rates of the top zones.

Between €12,348 and €69,878, section 32a gives no rate but two equations. For 2026: from €12,349 to €17,799, tax is (914.51 × y + 1,400) × y, where y is one ten-thousandth of the amount above €12,348; from €17,800 to €69,878, (173.10 × z + 2,397) × z + 1,034.87, where z is one ten-thousandth of the amount above €17,799. Then 0.42 × x − 11,135.63, and 0.45 × x − 19,470.38 from €277,826. Income is rounded down to the euro, and so is the tax. Here is what these formulas give:

The couple column applies the method in section 32a(5): twice the tax on half the joint income, for spouses assessed together. The last column comes from the Solidarity Surcharge Act (SolzG): it only applies if the tax used as its base goes over €20,350, or €40,700 on splitting (section 3), and is then 5.5% of that base, capped at 11.9% of the excess over the threshold (section 4). With children the base is different, and we have not modelled it. These rows are calculations from the texts, not official figures, and they leave out church tax, social contributions and income at special rates, none of which we read here.

No Wohnsitz, no abode: limited liability

Without those ties, section 1(4) EStG taxes you only on German income within the meaning of section 49. Section 50 then applies the scale with one important difference: taxable income is increased by the Grundfreibetrag, the 0% portion, with adjustments for wages. So a commuter can look at section 1(3): on application, a non-resident can be treated as having unlimited liability for German income, if at least 90% of the year's income is subject to German tax, or if the rest does not exceed the Grundfreibetrag, an amount reduced where the country of residence calls for it. A certificate from the foreign tax authority is required. The text is conditional, so reread it for your case.

Six months in a row: what the counter counts and what it does not

From 20 January to 25 July 2026, the preloaded example goes past six months: the section 9 duration is reached. Our engine test sits on that line: from 15 January to 14 July, exactly six months, the duration is not exceeded; from 15 January to 15 July, it is. Three limits on reading this, since the German rule is no simple sum. The counter takes your longest unbroken presence and treats each trip out as a break, while the law ignores brief interruptions: if you leave for a week, merge both stays to see the cautious result. Nor does it know whether your stay is purely private. And it knows nothing about a Wohnsitz.

Giving up or keeping the dwelling on departure

Leaving Germany while keeping the flat available keeps the section 8 test in play: the question is whether the circumstances suggest you will keep and use it. The statute says nothing further on subletting or length of absence, and we add nothing to it. Two sections of the External Tax Relations Act (AStG) also target departure. Section 6 treats as a sale at fair value, for shares within section 17 EStG, the end of unlimited liability through giving up a Wohnsitz or habitual abode. Section 2 covers a German who had unlimited liability for at least five of the last ten years, settled in a low-tax territory or nowhere, with substantial economic interests in Germany. Their conditions are long, so read both in full before leaving.

Filing and residence conflicts

For employees, section 46 EStG limits the cases of compulsory assessment when tax has been withheld from wages: other income above a certain amount, income subject to progression, and further cases to read in that section. If a second country treats you as resident, see dual tax residency; no German treaty was reviewed for this page. To compare with a neighbouring rule using different figures, see Switzerland or Luxembourg, or the country table. The Taxlag app keeps a record of each stay if you would rather not rebuild it all later.