Church Tax – What Should You Know About the Supplementary Church Tax?
Taxpayers are required to pay taxes on their income to the government. In Germany, tax revenues are used to finance the state. However, many taxpayers are not only required to pay traditional income tax; church tax is often due as well. Many taxpayers are inadequately informed or misinformed about this specific church tax. As tax advisors in Düsseldorf
and Oberhausen
, we want as many people as possible to be informed about relevant tax matters. In this article, we will therefore explain what you should know about church tax.
What is church tax?
As the name suggests, church tax is a tax levied to finance religious communities. This supplementary church tax is collected alongside other types of taxes. The amount of church tax is based on the taxpayer’s income. Church tax is regulated in more detail by the various federal states. Consequently, there are also different regulations within Germany.
Not everyone has to pay church tax. If someone is liable for church tax, this is also indicated on the electronic wage tax card (ELStAM). The tax is transferred directly from the employer to the tax authorities. For self-employed individuals, the tax liability is determined by the tax office in the form of advance tax payments due during the year.
Who has to pay church tax?
Not everyone is required to pay church tax. Only those who are members of a religious community pay church tax. It should be noted that many people automatically become members of the church, for example, through baptism. It is therefore often not a conscious decision.
The following religious communities levy a tax:
- Catholic Church
- Protestant regional churches
- Old Catholic Church
- Jewish religious communities
- Independent religious communities
- French Church in Berlin
- Jewish Religious Communities
- Mennonite Congregation in Hamburg-Altona
- Unitarian Religious Community of Independent Protestants in Rhineland-Palatinate
There are other religious communities that are theoretically permitted to collect taxes but do not do so. These include the Jehovah’s Witnesses, the Orthodox Churches, Evangelical Free Churches, and the Salvation Army. Muslim and Buddhist religious communities are not recognized as legal entities in Germany. Members therefore do not pay church tax.
What types of church tax are there?
Although people often speak of “the” church tax, there are various types of church tax. Church tax can generally be divided into four categories:
- Church income tax or church payroll tax – This is the “classic” church tax. The tax is calculated based on income.
- Church property tax – In certain regions, this special church tax exists in addition to church income tax. Property is taxed at a fixed percentage of the property tax assessment base.
- General church tax – Also known as local church tax, the general church tax is levied regionally. This special church tax requires even those who do not normally pay taxes to make a contribution.
- Special church tax – This special form applies only to couples who file a joint tax return but belong to different religious communities. The special church tax is calculated based on their joint income using various brackets.
Avoiding church tax: Leaving the church
Not everyone who is a member of a religious community wants to pay church tax. By leaving the church, you can exempt yourself from this tax obligation. It is important to note that you should no longer want or need membership in the long term. In some cases, for example, you must be a member of the church to have a church wedding. If you decide to leave the church, you can do so at the relevant registry office or local court. A withdrawal fee is required, which ranges from 5 to 30 euros depending on the state. It is important that you receive a confirmation of withdrawal so that you have proof of your withdrawal in case of future inquiries or issues with the tax office.
How does your place of residence affect church tax?
As mentioned earlier, church tax is regulated at the state level. Depending on where you live, there may therefore be specific rules. A special case arises, for example, if you work and live in different states. The amount of church tax is then determined by the laws of the state where you work.
Church tax for low-income earners, retirees, the unemployed, and those in mini-jobs
People who are unemployed or have a very low income may fall below the basic exemption threshold. In 2020, the basic exemption threshold is 9,408 euros gross per year. Provided that annual income does not exceed this amount, generally no taxes need to be paid. This also means that church tax is waived.
People with mini-jobs often do not have to pay taxes. In tax brackets 1, 2, 3, and 4, people with mini-jobs do not pay church tax.
Reporting church tax on your tax return
Church income tax or the general and special church tax can be deducted from your taxes. These expenses must be listed as special expenses on the cover sheet of the tax return. If you have questions about your tax return or are unsure how to report church tax, the team at Trimborn . Partner is here to help.
Tax consulting with experts in Düsseldorf and Oberhausen
Do you need help with your tax return or have questions about tax matters? The team at Trimborn . Partner can assist with all tax-related issues. During a consultation, you can ask any questions you may have and finally go about your daily life without tax-related difficulties. Simply contact us to schedule an appointment.
