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Small Share of German Taxpayers at 42% Rate Paid Nearly Half of Income Tax

The 2022 figures show a concentrated tax burden that could shape Finance Minister Lars Klingbeil’s planned income tax reform.

Overview

  • Destatis, which published the wage and income tax statistics on Wednesday, reported that about 3.2 million taxpayers or 7.4% of filers were taxed at the 42% marginal rate in 2022 and together generated 49% of income tax receipts.
  • Those taxpayers had average taxable annual income of roughly €196,000 and the 42% rate in 2022 kicked in at a taxable income of €58,597 for singles, with the rate applied only to income above that threshold.
  • A much smaller group of about 141,000 people, or 0.3% of taxpayers, had taxable income above €277,826 and accounted for 15.3% of income tax revenue by paying the 45% top rate on income above that level.
  • Total taxable income in 2022 was about €2.1 trillion and employer‑withheld wage tax plus assessed income tax reached €376 billion, up €19 billion from 2021, showing rising revenue concentrated at higher margins.
  • The official data refer to the 2022 assessment year and were released with the standard multi‑year delay, a timing detail that gives weight to current policy debates and could affect how any reform would adjust thresholds, relief for lower incomes, or the reach of the top rates.