German tax revenues continued to rise in July, though at a slower pace than observed in previous months. According to a monthly report released by the Federal Ministry of Finance on Thursday, overall tax income increased by 3.0 percent compared to the same month last year.
Combined taxes, which constitute the largest portion of total revenue, saw an increase of 2.7 percent. Growth was primarily driven by income tax and wage tax revenues.
However, value-added tax revenues decreased by 2.7 percent year-on-year, following significant increases recorded in May and June. Revenue from non-assessed income taxes also declined. Capital gains tax on interest and dividends continued to show a trend towards “normalization” in July.
Federal tax revenues increased by 1.0 percent overall for the month. A more substantial rise was only seen in insurance tax revenues, which increased by 9.0 percent. Tobacco tax revenues were up slightly by 1.6 percent, while all other significant tax types registered declines.
State-level tax revenues demonstrated a considerable increase of 15.0 percent compared to July 2024. This growth was fueled by increases in real estate transfer tax and inheritance tax, two of the largest revenue sources for the states. Real estate transfer tax revenues have stabilized in 2025, averaging nearly 1.3 billion euros monthly and increased by 9.2 percent year-on-year in the reporting period. Inheritance tax revenues were 29.1 percent higher than in July 2024, although this tax is typically subject to significant monthly fluctuations.
