Solidaritätszuschlag (Soli)

The Solidaritätszuschlag (Soli) is a 5.5% supplementary tax levied on top of your income tax in Germany, originally introduced in 1991 to finance German reunification costs. Since the 2021 reform, approximately 90% of taxpayers no longer pay Soli due to significantly raised exemption thresholds. For 2026, the Soli-free amount is €19,950 in annual income tax liability for singles and €39,900 for married couples filing jointly. Only high earners whose income tax exceeds these thresholds must pay the solidarity surcharge.

The Soli is calculated directly on your assessed income tax (Einkommensteuer), not on your gross income. For example, if your income tax liability is €25,000 and you're single, the amount exceeding the €19,950 threshold (€5,050) enters a relief zone with a gradual phase-in. Above approximately €32,000 in income tax (roughly €130,000+ gross income for singles), you pay the full 5.5% on your entire income tax amount. The Soli also applies to capital gains tax (Abgeltungsteuer) and corporate tax (Körperschaftsteuer).

Real-World Example If Marcus earns €140,000 annually and his income tax liability is €38,500, his Soli calculation is €38,500 × 5.5% = €2,117. If his colleague Julia earns €70,000 with an income tax of €15,200, she pays zero Soli because her income tax is below the €19,950 threshold. The Soli reform has effectively eliminated this surcharge for middle-income earners while maintaining it for the top 10% of taxpayers.