Solidarity surcharge from 2021, partial abolition planned.

The German government has presented a bill for the partial abolition of the solidarity surcharge.

Accordingly, from 2021, the limit up to which no solidarity surcharge is levied is to be raised to a taxable income of 61,716 euros (spouse: 123,432 euros); this corresponds to an income tax amount of 16,956 euros (spouse: 33,912 euros).
This means that 90% of all wage and income tax payers will no longer have to pay the solidarity surcharge.

After exceeding the above-mentioned limit, a so-called “mitigation zone” follows (similar to before), which reaches up to a taxable income of 96,409 euros (spouse: 192,818 euros).

The solidarity surcharge on capital gains tax (final withholding tax) is to remain unchanged. This can then be refunded as part of the income tax assessment.

The solidarity surcharge on the flat-rate wage tax and on corporate income tax is to remain unchanged.

Whether and when the solidarity surcharge will be completely abolished is still completely unclear; we will have to wait and see how things develop.