Overall, German state tax revenue rose by 1.7 percent in August compared to the previous year, according to the new monthly report from the Federal Ministry of Finance, which is set to be published on Tuesday.
Major contributions to this growth included increases in wage tax, the withholding tax on interest and disposal income, and value-added taxes (VAT). Conversely, revenues declined compared to the previous year in non-taxed income and, particularly, in assessed income tax and corporate tax.
Among other significant federal taxes, the Solidarity Surcharge, tobacco tax, and vehicle tax all saw revenue reductions in the reporting month. However, income from electricity tax and insurance tax increased compared to August 2025. The Ministry estimates that the temporary reduction of energy tax rates on fuels in May and June was also reflected in the August collections, due to the time lag between the occurrence of the tax and its recording in the treasury books.
Regarding state taxes, revenues were down 3.2 percent year-on-year in August 2026. Inheritance tax, which typically exhibits high monthly revenue volatility, saw a decline of 7.9 percent compared to August 2025. Furthermore, the revenue from real estate transfer tax, another major state tax, was reported to be 2.4 percent lower.
