German tax revenues continued to rise in July, although at a slower pace than observed in previous months. According to a monthly report published by the Federal Ministry of Finance on Thursday morning, overall tax income increased by 3.0 percent compared to the same month last year.
Joint taxes, which constitute the largest portion of tax revenue, saw a rise of 2.7 percent. This growth was primarily driven by increases in income tax and wage tax revenue.
However, revenue from value-added taxes decreased by 2.7 percent year-on-year, following substantial gains in May and June. Non-assessed income taxes also experienced a decline. Capital gains tax on interest and profits continued to show a trend towards “normalization” in its development.
Federal tax revenue increased by 1.0 percent for the reported month. A significant increase was only seen in insurance tax revenue, rising by 9.0 percent. Tobacco tax revenue increased slightly by 1.6 percent, while other major tax categories recorded decreases.
State-level tax revenue showed a substantial increase of 15.0 percent compared to July 2024. This was based on gains in real estate transfer tax and inheritance tax, two of the largest revenue generators for the states. Real estate transfer tax revenue stabilized in 2025, reaching an average monthly income of nearly 1.3 billion euros and increasing by 9.2 percent compared to the same period last year. Inheritance tax revenue was 29.1 percent higher than in July 2024, although this tax category regularly experiences significant monthly fluctuations.