German federal state tax revenue fell by 0.4 percent in June compared to the same month last year, according to the new monthly report published by the Federal Ministry of Finance on Tuesday.
Federal income tax, corporate tax, and VAT revenues decreased year-over-year. However, other areas increased, notably payroll tax and, most significantly, the withholding tax on interest and disposal income. Among the federal taxes that saw growth were taxes on tobacco, insurance, and vehicles. Conversely, revenues from energy tax, the solidarity surcharge, and electricity tax declined compared to June 2025. The ministry estimates that the temporary reduction in fuel energy tax rates during May and June will only materialize in revenue streams starting in July, due to the lag between tax generation and treasury recording.
On the regional level, state tax revenues increased significantly by about 10 percent compared to the previous year. This rise was primarily driven by an increase in inheritance tax receipts. The revenue from real estate transfer tax, another strong state tax, however, was only slightly higher than in June 2025, the report notes.
Looking at the entire first half of 2026, combining tax receipts from federal, state, and municipal levels, revenues are currently up by 0.8 percent compared to the same period last year. To meet the initial forecast for the full year, however, tax receipts in the second half of 2026 will need to rise more strongly, as the previous full-year projection had anticipated a total increase of 1.2 percent.
