SHARE
COPY LINK

TAXES

Hundesteuer: Germany collects record amount of dog tax

Many foreigners are surprised to learn that dog owners in Germany have to pay a special tax. And it's a big earner for authorities - last year Hundesteuer brought in a record €401 million.

A dog in Germany.
Germany has collected a record amount of dog tax. Photo: picture alliance/dpa | Oliver Dietze

In 2021, cities and municipalities across Germany had higher revenues from dog tax than ever before, reflecting the trend of people adopting dogs during the pandemic. 

Authorities collected €401 million, according to new figures from the Federal Statistical Office – up from €308 million in 2020.

Dog tax revenue has risen steadily in the years before the pandemic, according to the Federal Statistical Office. In 2011, authorities collected just €275 million.

All dogs in Germany are subject to the Hundesteuer, an annual fee that dog owners have to pay. It’s in place to support local authorities but to also make people really consider whether they want to and can support a dog long-term. 

READ ALSO: Prostitution, dogs and loneliness: A look at Germany’s weirdest taxes

The district determines how high the tax is, and how exactly it is structured. In many places, the amount to be paid also depends on the number of dogs in the household and the breed of dog.

In Berlin, for example, the first dog costs 120 per year with each additional dog costing 180 per year. 

In Düsseldorf, the tax for one dog in the household is 96, which rises to 150 for two.

The trend towards having pets can also be seen elsewhere. For instance, the Industrieverband Heimtierbedarf (pet supplies industry association) and the Zentralverband Zoologischer Fachbetriebe (central association of specialist zoological businesses) reported in April that total sales in the German pet industry had risen by almost 10 percent – amounting to around €6 billion.

The German Animal Welfare Association, meanwhile, reported that many animal shelters were overloaded in the summer. According to several shelters, young dogs were among those being handed in most often. 

One reason could be that owners had to return to work after months of working from home and could no longer care for their dogs, according to the German Canine Association.

Member comments

  1. Dog tax is ok but it should be lower and the amount should be the same all over Germany – not varying in every town and village. Also a second or a third dog should double or treble in tax and not be some weird figure. Why can’t the Germans keep things simple? The bureaucracy here often makes no sense whatsoever.

Log in here to leave a comment.
Become a Member to leave a comment.

TAXES

Hundreds of thousands of pensioners in Germany ‘not liable for tax this year’

Almost a quarter of a million pensioners will no longer have to pay tax this year, according to new government figures.

Hundreds of thousands of pensioners in Germany 'not liable for tax this year'

Around 244,000 pensioners will no longer be liable to pay tax in 2024 because they are to benefit from the increase in the basic allowance for income tax.

This figure was confirmed by a spokesperson for the Finance Ministry following a report in the Süddeutsche Zeitung newspaper. However, 114,000 pensioners are also to be added as new taxpayers this year due to the upcoming pension hike in July.

Pension pay outs in Germany will increase by an average of 4.57 percent on July 1st this year. For 2024, there will still be around 6.3 million people in Germany who are considered “taxpayers with pension income,” the spokesperson explained. In total, there are around 21 million pensioners in Germany, making up about a quarter of the population.

READ ALSO: Here’s how much more pensioners in Germany can expect to receive this year

The basic tax-free allowance applies to all taxpayers and refers to the annual income up to which no income tax has to be paid. It stands at €11,604 for the current year. To compensate for inflation, it was increased by €696 euros from €10,908 at the turn of the year.

Finance Minister Christian Lindner (FDP) is aiming for an even greater retroactive increase – although this is currently still being discussed within the coalition government. According to the spokesperson, this has not yet been taken into account in the Finance Ministry’s figures.

The taxation of pensions was reorganised with a reform in 2004. Gradually, more of people’s pensions will becomes taxable, while contributions in the working phase are tax-free.

The later the start of the pension, the higher the taxable portion of the pension income. Many pensions remain tax-free if pensioners have no other income.

In 2024, the pension adjustment will be above four percent for the third year in a row, and, for the first time, it will be the same nationwide.

Pensions are also likely to increase in future, but not to the same extent as this year, according to a recent report on pensions.

The report assumes an average rate of increase of 2.6 percent per year until 2037. At the same time, the pressure on the pension pot is increasing due to the wave of ‘baby boomers’ heading into retirement and fewer people in the workforce. 

According to the report, the pension level is likely to fall from the current 48.2 percent to 45.0 percent in 2037 without legislative intervention. This means that pensions will generally no longer increase as much as wages.

The government wants to counteract this with a second pension package and guarantee a pension level of 48 percent for the future. As part of the reform, it also wants to invest at least €200 billion from federal funds on the capital market by the mid-2030s.

Currently someone who receives an average salary for 45 years of their working life gets just over 48 percent of that salary paid to them each month upon retirement. 

READ ALSO: Six things to know about Germany’s pension reforms

SHOW COMMENTS