Germany’s tax income grew by 2.6% in May compared to the same month last year, the finance ministry reported on Friday. This increase is slower than the growth seen in previous months, which were 10.2% in April, 11.1% in March, and 8.1% in February.
Total tax revenue for May reached 62.8 billion euros ($72.05 billion). The rise was driven by higher income and sales taxes. However, withholding tax on interest and capital gains did not show significant growth for the first time since May 2023.
From January to May 2025, Germany collected 349 billion euros in tax revenue, marking an 8.3% increase compared to the same period last year. The ministry expects income tax growth to slow down in 2025.
This slowdown is due to wage increases from collective bargaining deals now being part of the comparison base, along with a subdued labor market.
Earlier this month, four German economic institutes raised their growth forecasts for the country. They now expect Germany’s economy to grow this year after two years of decline.
Despite the strong first quarter, the finance ministry does not expect strong momentum in the coming months. The report highlighted ongoing uncertainty linked to international trade policy as a key risk.
($1 = 0.8716 euros)
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