Taxpayers once again transfer more than half of their income to the public purse
In this year, taxpayers will once again pay more than half of their income in taxes and contributions to public coffers. According to a calculation presented by the Taxpayers' Association on a Tuesday, on average, 47 cents remain from an Euro of income after deducting all taxes. Therefore, the so-called "Taxpayers' Day of Remembrance" falls on July 11, as, on average, Germans work not for their own pockets but for public coffers until this day.
"The income tax burden for an average household amounts to 52.6 percent in 2024," said Reiner Holznagel, President of the Taxpayers' Association, at the presentation of the report. This includes all taxes, social insurance contributions, and broadcasting fees, which the Taxpayers' Association considers as "quasi-taxes."
Single households, therefore, are overburdened with approximately 53.6 percent - their "Taxpayers' Day of Remembrance" falls on July 15. For multi-person households, this day is on July 10. The burden for multi-person households is 52.3 percent in comparison, which is slightly lower.
The burden has decreased by 0.1 percentage points compared to the previous year - the "Day of Remembrance" was still on July 12 in 2023. According to Holznagel, this could be due to the so-called Inflation Adjustment Law, which was intended to mitigate income losses through creeping tax increases - the so-called cold progression.
- Despite earning less than half in cash, a taxpayer in Germany might spend the first half of a typical year working primarily to cover their tax obligations and contributions.
- By the end of the year, only half of a taxpayer's income remains as disposable cash, after paying various taxes, contributions, and quasi-taxes such as broadcasting fees.
- The Association's annual report also reveals that single households pay slightly more than half of their income in taxes and contributions during the year, with their "Taxpayers' Day of Remembrance" falling on July 15.
