German inheritance tax - tax classes and tax rates
This article outlines the legal situation under the German inheritance and gift tax act ( Erbschafts- und Schenkungsteuergesetzes, herafter: ErbStG) for taxable acquistions until January 1st 2007 (old law) and after January 1st January 2009 (new law). For taxable acquisitions in the period between January 1st 2007 and 1st January 2009 the taxpayer can chose the applicable law.
Tax Classes (§ 15 ErbStG)
Beneficiary is ... | Tax class (old law) | Tax class (new law) |
The spouse of the deceased | I | I |
Divorced spouse | II | II |
Registered same sex partner | III | III |
Children of the deceased (including step-children) | I | I |
Children of a predeceased child the deceased | I | I |
Offspring of living children of the deceased | I | I |
Parents and other ascendants (acquistions moris causae) | I | I |
Brothers and Sisters of the deceased | II | II |
Nices and nephews | II | II |
Step-parents | II | II |
Parents-in-law | II | II |
Daughters-in-law and sons-in-law | II | II |
All other recepients | III | III |
Tax Rates (§ 19 ErbStG) - old law
Tax rates depend on the amount aquired (taxable acquisition)
Taxable aquisition | Tax rates | ||
Tax class I | Tax class II | Tax class III | |
Up to 52.000 Euro | 7% | 12% | 17% |
Up to 256.000 Euro | 11% | 17% | 23% |
Up to 512.000 Euro | 15% | 22% | 29% |
Up to 5.113.000 Euro | 19% | 27% | 35% |
Up to 12.783.000 Euro | 23% | 32% | 41% |
Up to 25.565.000 Euro | 27% | 37% | 47% |
Up to 25.565.000 Euro | 30% | 40% | 50% |
Tax Rates (§ 19 ErbStG) - new law
Tax rates depend on the amount aquired (taxable acquisition)
Taxable aquisition | Tax rates | ||
Erwerbs (§ 10) bis einschließlich Euro | Tax class I | Tax class II | Tax class III |
75 000 | 7 | 30 | 30 |
300 000 | 11 | 30 | 30 |
600 000 | 15 | 30 | 30 |
6 000 000 | 19 | 30 | 30 |
13 000 000 | 23 | 50 | 50 |
26 000 000 | 27 | 50 | 50 |
über 26 000 000 | 30 | 50 | 50 |