Solidarity Surcharge (Soli) 2025: Exemption Threshold and Who Still Pays
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The solidarity surcharge has been abolished for 90% of taxpayers. Learn the 2025 thresholds and whether you are affected (top earners, capital gains).
Exemption Threshold and Mitigation Zone 2025
Since 2021, around 90% of taxpayers have been exempt from the solidarity surcharge (Solidaritätszuschlag). The Soli only applies once the income tax (or wage tax) exceeds a specific exemption threshold (Freigrenze). Above this threshold, a mitigation zone (Milderungszone) applies, in which the Soli gradually increases – until it reaches the full 5.5% of income tax for high earners.
Table: Soli Exemption Threshold and Income Levels
| Tax Assessment | Income Tax Threshold (Soli) | Approx. Annual Gross (Soli starts) | Full Soli from approx. |
|---|---|---|---|
| Individual assessment | 18,130 € | approx. 68,000 € | approx. 104,000 € |
| Joint assessment (married) | 36,260 € | approx. 136,000 € | approx. 208,000 € |
Important: The exemption threshold refers to the assessed income tax, not to gross income. The gross figures in the table are approximations for tax class I or III/IV without special deductions.
What Is the Mitigation Zone?
The mitigation zone prevents an abrupt jump from 0% to 5.5% Soli. Those just above the threshold pay only a fraction. The Soli then increases linearly: it amounts to a maximum of 11.9% of the amount by which the income tax exceeds the threshold. Only at significantly higher incomes does it reach the full 5.5% of income tax.
Historical Overview: The Soli from 1991 to Today
- 1991–1992: Introduced as a temporary surcharge (7.5%) to finance German reunification and the Gulf War.
- 1993–1994: Suspended.
- 1995–1997: Reintroduced at 7.5%.
- 1998–2020: Reduced to 5.5% – applied to all taxpayers on the entire income tax.
- From 2021: Partial abolition through the "Act on the Return of the Solidarity Surcharge." 90% of taxpayers no longer pay the Soli, and a further 6.5% fall in the mitigation zone.
Whether the Soli is unconstitutional has been debated for years. The Federal Constitutional Court has left a decision open so far. A ruling could eliminate the Soli for top earners as well.
Soli on Capital Gains
A frequently overlooked point: on capital gains such as interest, dividends, and capital gains, the flat-rate withholding tax of 25% (Abgeltungsteuer) applies – and the full 5.5% Soli is always charged on top of it. The exemption threshold does not apply here, as the Abgeltungsteuer is a separate tax type.
- Tax rate: 25% Abgeltungsteuer + 5.5% Soli = effectively 26.375% (plus church tax if applicable).
- Saver's allowance (Sparerpauschbetrag): 1,000 € (single) or 2,000 € (married) remains tax-free – beyond that, the Abgeltungsteuer including Soli applies.
Corporate Tax and Soli
Corporations such as GmbHs and AGs also continue to pay the full solidarity surcharge. The corporate income tax (Körperschaftsteuer) is a flat 15%, plus 5.5% Soli = an additional 0.825%. Together with trade tax (Gewerbesteuer), this results in a total burden of approximately 30% for corporations. There is no exemption for corporations as there is for income tax.
Sources: Solidarity Surcharge Act (SolZG), Act on the Return of the Solidarity Surcharge 1995, BMF Guidance 2021.
Check your Soli: See at a glance whether you still owe the solidarity surcharge and how much it is: Go to Gross-Net Calculator.
Sources & References (2026)
All calculations are based on the official legal provisions for 2026. Despite careful research, no guarantee is given for correctness. This calculator does not replace professional tax advice.