Germany's 2026 Tax Income Climbs 1.6% in February, Fueled by Energy Tax Surge and Capital‑Gains Gains
Politics

Germany’s 2026 Tax Income Climbs 1.6% in February, Fueled by Energy Tax Surge and Capital‑Gains Gains

German tax collections edged higher overall in early 2026, but the February monthly figure actually fell 1.6 % compared with the same month last year, according to the Federal Ministry of Finance’s March report released on Friday morning. The year‑on‑year decline was partly distorted by posting effects in customs value‑added tax and tobacco tax; without those adjustments the calculation would have shown an increase of roughly 6.5 %.

The bulk of revenue came from common (or “Gemeinschafts”) taxes. These grew 1.1 % in February versus February 2025, driven mainly by a sizable jump in the withholding tax on interest and capital gains. Wage‑tax revenue kept rising, up 4.5 %, while collected income‑tax and non‑assessed income‑tax receipts declined. Corporate‑tax receipts stayed essentially flat year‑on‑year.

Federal taxes in the reporting month recorded a 4.3 % rise. Energy tax receipts surged by 24.4 %, whereas tobacco‑tax revenue dropped 19.9 %. The decline in tobacco tax was due to a posting effect that moves the revenue to the March figure.

State tax receipts increased 4.4 %. The two strongest contributors each saw higher receipts: inheritance tax up 9.9 % and property‑transfer tax up 1.1 %.