Solidarity Surcharge: Tax Offices Settle Old Objections, Court Upholds Legality
The solidarity surcharge, a tax that has been part of the country's landscape for over three decades, remains a topic of discussion. Despite its decreasing relevance, it continues to affect a significant portion of taxpayers. Initially introduced to fund the high costs of reunification, the solidarity surcharge has evolved into a fixed source of income. As of 2021, only around 10 percent of all taxpayers still pay this tax. The full rate of 5.5 percent applies from an income tax of around 19,950 euros for singles or 39,900 euros for couples. However, the tax's future has been a subject of debate and uncertainty. In a significant development, a nationwide decree by tax offices on August 4, 2025, declared all open objections from before 2020 as settled. This means that those who had contested the solidarity surcharge contributions from previous years will no longer be able to seek refunds. The Federal Constitutional Court further confirmed the legal basis for the solidarity surcharge in March 2025, ensuring its continued existence. Those still paying the solidarity surcharge are advised to check their tax notices and consider seeking professional advice to avoid any unnecessary burdens. The solidarity surcharge, despite its decreasing relevance, continues to affect millions of employees and companies, which bear almost half of the total revenue. With the official discontinuation of contested contributions from before 2020 on December 14, 2020, and the recent decree and court confirmation, taxpayers are urged to stay informed and seek professional advice regarding their tax obligations.
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