Germany Soli Solidaritätszuschlag 2026 Calculator

The Solidaritätszuschlag — usually shortened to Soli — is a 5.5% federal surcharge on the German income tax (Einkommensteuer) introduced in 1991 to fund the costs of German reunification. Since the 2021 reform, around 90% of taxpayers no longer pay Soli at all, and a further 6.5% pay only a reduced amount inside the Milderungszone (gliding zone).

The 2026 Freigrenze and Gliding Zone

The Soli is only owed once your annual Einkommensteuer exceeds the Freigrenze — the exemption threshold — which for 2026 is €19,950 for single filers (Grundtarif) and €39,900 for jointly assessed married couples (Splittingtarif). Above the Freigrenze a sliding tapered scale (Milderungszone) applies: the Soli builds up gradually using the formula (income tax − Freigrenze) × 11.9%, capped at the full 5.5% of total income tax. The upper end of the Milderungszone is roughly €33,900 income tax for singles / €67,800 for couples — above that you pay the full 5.5%.

Who Still Pays Soli in 2026

Only roughly the top ~10% of earners. As a rough single-filer guide: gross taxable income up to about €73,000/year owes no Soli, €73,000-€110,000 falls inside the Milderungszone with a partial rate, and above ~€110,000 the full 5.5% applies. Couples filing jointly under the Splittingtarif have double these thresholds. Soli also remains in full force on Kapitalertragsteuer (capital-gains withholding tax — 25% flat) and on Körperschaftsteuer (corporate tax), regardless of income level — savers and corporations still pay 5.5% Soli on those bases.

Calculation Mechanics

The Einkommensteuer is calculated under the progressive Grundtarif (or doubled Splittingtarif for joint filers): tax-free basic allowance €12,084 (2026 single), then progressive bands rising to 42% (Spitzensteuersatz) at €68,481, and 45% (Reichensteuer) at €277,826. Soli takes that Einkommensteuer figure, checks it against the Freigrenze, and applies either 0%, the gliding-zone formula, or the full 5.5%. Kinderfreibeträge (child allowances) reduce taxable income and therefore indirectly reduce Soli. Church tax (Kirchensteuer, 8-9%) is separate and not affected by the Soli reform.

How to Stop Paying Soli on Your Savings: the Freistellungsauftrag

The Soli you can actually cancel is not the one on your salary — it is the one your bank withholds on interest and dividends, and most savers pay it needlessly. Capital income in Germany is taxed at a flat 25% Kapitalertragsteuer plus 5.5% Soli on that tax, withheld automatically by the bank, and unlike the wage Soli it applies at every income level. The fix is a Freistellungsauftrag (exemption order) filed with each bank or broker, which shelters capital income up to the Sparer-Pauschbetrag of €1,000 for singles and €2,000 for jointly assessed couples in 2026 — unchanged from 2025 (BMF, steuerliche Änderungen 2026). It is worth roughly €264 a year at the full allowance: €1,000 × 25% = €250 of Kapitalertragsteuer plus €13.75 of Soli, and church tax on top if you pay it. Three things people get wrong. The allowance is per person, not per bank — if you hold accounts at three institutions you must split the €1,000 across them, and over-allocating triggers a correction because every Freistellungsauftrag is reported to the Bundeszentralamt für Steuern. It is not retroactive beyond the calendar year, so tax already withheld this year is only recoverable through your Steuererklärung via the Anlage KAP. And students or low earners below the Grundfreibetrag should file a Nichtveranlagungsbescheinigung instead, which exempts capital income entirely rather than just up to €1,000. Updated 2026-09-03.

Common Soli Mistakes

(1) Assuming Soli is gone — high earners, capital-gains taxpayers, and corporations still pay. (2) Confusing Freigrenze with Freibetrag — a Freigrenze is a cliff (exceed it and the whole amount becomes taxable in the gliding zone); a Freibetrag is a tax-free allowance subtracted from taxable income. (3) Forgetting the Splittingtarif — married couples should always file jointly when one earns much more; the Freigrenze doubles. (4) Missing the Kapitalertragsteuer Soli — bank withholding on interest and dividends always includes the full 5.5% Soli, so factor it into your effective return calculations.

Sources: Bundesministerium der Finanzen (bundesfinanzministerium.de), Solidaritätszuschlaggesetz 1995 (SolZG), Einkommensteuergesetz (EStG). 2026 figures per the BMF tax tables. Last updated May 2026.