Taxes
Germany — Tax: Wealth Tax
Germany has not levied its Vermögensteuer (wealth tax) since 1997. On 22 June 1995 the Federal Constitutional Court ruled that wealth tax rules taxing property valued under the old standard values more lightly than other assets were incompatible with the Basic Law, and the legislator had to make a new rule by 31 December 1996. Collection has been suspended since 1997, and the Bundestag recorded in 2006 that levying it from 1997 had been suspended in the old federal states. The Vermögensteuergesetz still exists in the statute book. Proposals to reintroduce a wealth tax exist but are not law.
VerifiedGovernment / official sourceBundesverfassungsgericht (Federal Constitutional Court); Deutscher Bundestag; VermögensteuergesetzLast reviewed: 2026-10-23
Key facts
- The Federal Constitutional Court ruled on 22 June 1995 that the wealth tax rules were incompatible with the Basic Law and required a new rule by 31 December 1996.
- Collection of the Vermögensteuer has been suspended since 1997.
- The Vermögensteuergesetz remains in the statute book, but no wealth tax is levied under it.
- Proposals to reintroduce a wealth tax have not been enacted.
Common mistakes
- Assuming the wealth tax was formally repealed — collection has been suspended since 1997 and the law still exists.