Germany Church Tax 2025: Kirchensteuer Rates, Opt-Outs, and Payroll Impact

Germany Church Tax (Kirchensteuer) 2025

Members of recognized religious communities in Germany pay an additional church tax equal to 8% (Bavaria, Baden-Württemberg) or 9% (other federal states) of their income tax liability. Automated payroll withholds the tax, so verifying membership status and payroll records is crucial.

Determining Membership

Church tax applies if you are registered with a religious community in the civil registry. Upon joining or leaving, the registry notifies the tax office. Resignations require a formal declaration at the local county court (Amtsgericht) or registry office with a fee; the effective date is the month following resignation.

Income Types Subject to Church Tax

The levy applies to wages, self-employment income, capital gains tax, and income tax assessments. Banks automatically deduct church tax on investment income if your religious affiliation is stored in the Federal Central Tax Office database (Bundeszentralamt für Steuern).

Cap and Special Deductions

Several states offer caps to prevent disproportionately high church tax burdens, often limiting the charge to 2–3% of taxable income. Church tax qualifies as a special expense (Sonderausgabe) in your tax return, lowering the effective cost by your marginal tax rate.

Employer Considerations

Employers must maintain accurate ELStAM payroll records and apply the correct state rate. If employees resign mid-year, update payroll promptly to avoid overwithholding. Provide wage statements showing church tax amounts for employee records.

Action Plan: Confirm your membership status, evaluate state-specific caps, and document church tax payments for annual filing to capture deductions.