Who still pays the Solidaritätszuschlag in Germany?

The Solidaritätszuschlag (solidarity surcharge, commonly called Soli) was introduced in 1991 to fund German reunification. Since 2021, approximately 90% of taxpayers no longer pay it. It was abolished for low and middle earners through a new exemption threshold.

For 2024, the Soli only applies if your income tax liability exceeds €18,130 per year (€36,260 for jointly assessed couples). Below this threshold, no Soli is owed. Between the threshold and a slightly higher limit, a sliding scale (Milderungszone) applies. Above that, the full Soli rate of 5.5% of your income tax liability applies.

In practice, you need to earn a fairly high income before Soli kicks in. A single person with taxable income around €100,000 or above will typically still pay some Soli. High-income individuals and corporations continue to pay it. Several legal challenges to the Soli were launched after 2021 on grounds that the reunification rationale no longer applies, but the Federal Constitutional Court and Federal Fiscal Court have so far upheld its constitutionality.