Published by Global Banking & Finance Review®
Posted on October 20, 2025
2 min readLast updated: January 21, 2026
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German tax revenues rose 2.6% in September, but economic momentum remains weak. Wage tax increased, while VAT stagnated, according to the finance ministry.
By Maria Martinez
BERLIN (Reuters) -Germany's federal and state government tax revenues were up 2.6% in September from the same month a year ago, the finance ministry said in a report on Tuesday, adding that tax revenues will not get a boost from economic momentum in the short term.
Germany, Europe's largest economy, contracted in 2024 for the second consecutive year, and the government expects only 0.2% growth this year.
The report said leading indicators did not point to "a noticeable acceleration in economic momentum in the short term".
German exports unexpectedly fell in August on a sharp decline in U.S. demand, industrial output posted its biggest decline in more than three years, and German industrial orders fell for a fourth straight month in August.
Total tax revenues hit 88.4 billion euros ($103.09 billion) in September.
Wage tax recorded a noticeable increase in revenue, while revenues from value-added taxes stagnated, the report said.
From January to September, tax revenues increased by 6.2% compared with the same period in 2024 to 665 billion euros.
For 2025 as a whole, tax analysts predict revenues will climb to 893.3 billion euros, up 3.7%, the report said.
($1 = 0.8575 euros)
(Reporting by Maria Martinez, Editing by Miranda Murray)
Corporate tax is a tax imposed on the income or profit of corporations. It is typically calculated as a percentage of the company's taxable income.
Economic growth refers to an increase in the production of goods and services in an economy over a period of time, often measured by GDP.
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