Germany’s Tax Revenues Continue to Grow in April
Germany’s tax revenues have continued to rise in April, according to a new report from the Federal Ministry of Finance, published on Thursday morning. In the fourth month of the year, federal, state and EU taxes generated around 10% more than in the same period last year.
For the first quarter, this translates to a 9.7% increase in tax revenues, reaching a total of 286.3 billion euros, compared to the same period in the previous year. The report attributes the significant increase in April’s tax revenues largely to a one-off effect in state taxes. The surge in state tax revenues, exceeding 191.5% of the previous year’s figure, is largely due to an unusual increase in inheritance tax, with revenues nearly 500% higher than in April 2024.
The real property transfer tax, another significant contributor to state tax revenues, showed a 25% increase.
The revenue growth in community taxes, which account for the majority of tax revenues, was more moderate at 4.3%. The withholding tax on interest and capital gains continued to show an increase, as did the income from wage and corporate taxes. In comparison to April 2024, the revenues from sales tax and the assessed income tax remained nearly unchanged.
The federal taxes saw a 4.7% increase in April compared to the previous year, but still lagged behind the overall tax revenue growth. The tobacco tax, solidarity surcharge and insurance tax all recorded revenue increases, while the energy tax, motor vehicle tax and electricity tax showed lower revenues compared to April 2024.