Taxes: More income millionaires in Germany

Taxes: More income millionaires in Germany

In Germany there are more and more people who are becoming millionaires thanks to their high income. Most of them prefer a northern German port metropolis as their place of residence.

The number of income millionaires in Germany rose by 4.6 percent in 2019. A good 27,400 of all recorded wage and income taxpayers had income of at least one million euros, as the Federal Statistical Office announced on Monday. That was almost 1,200 more than a year earlier. According to the Wiesbaden authority, income from a commercial enterprise was the main source of income for the majority of these people (58 percent).

In relation to the total number of taxpayers, in 2019, as in previous years, the relatively highest income millionaires lived in Hamburg. There, 12 out of 10,000 people subject to unlimited income tax had annual incomes in excess of one million. In Bavaria it was 9 out of 10,000 taxpayers. Saxony-Anhalt and Thuringia had the lowest density of millionaires, each with less than 2 out of 10,000 taxpayers.

In total, the 42.8 million taxpayers generated income of 1.9 trillion euros in 2019, which was 81 billion euros more than in the previous year. The national average income for millionaires was 2.7 million euros.

The highest tax rate of 45 percent – the so-called rich tax – had to be paid by 114,500 citizens. That was 2,200 more than the year before. They accounted for 6.6 percent of the total income and 13.2 percent of the tax total. In 2019, annual income from 265,327 euros – or from 530,654 euros for jointly assessed persons – was taxed at the maximum rate.

Source: Stern

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