How much is the capital gains tax?
Any taxpayer who trades in stocks and earns dividends in the process must pay capital gains tax. You can find out how high this is and how to avoid it in the following instructions.
Many people don't know what capital gains tax is, even though you've had to pay it for years. You can find out below what this type of tax is and how it is composed.
What is a capital gains tax?
The capital gains tax is similar to the interest income tax; only these are given different levels in the law. The latter has a percentage of 30%, whereby the capital gains tax is only endowed with 30%. However, a 5.5% solidarity surcharge will be added to both.
- You have to pay capital gains tax on dividends from stock transactions. Here, however, the half-income method applies, which says that you only have to pay tax on half of your "profit".
- However, you also have the option of submitting an exemption order to your bank. This is € 801 for singles. This means that once you have submitted the application, you can earn dividend income up to this amount and do not have to pay tax on it.
How much is this tax?
As already mentioned at the beginning of the manual, the capital gains tax is 20% and is applied to dividend income in the course of the half-value method. A 5.5% solidarity surcharge is added to this deduction. The following example should clarify this:
Who doesn't enjoy high dividends? Unfortunately, that joy is tarnished a little. …
- You have received income from dividends in the amount of € 1000 and an as yet unused exemption order of € 400. Now, according to the half-value method, you have to pay tax on € 500, but you have an allowance of € 400; so this amount is tax-free and there is a remainder of € 100.
- Now you have to of these € 100; Take 20% capital gains tax, resulting in a profit of € 20. Of this amount, you will now be charged an additional 5.5% solidarity surcharge, i.e. an additional 1.10 €. These two amounts are now added and the result is your interest expense: € 21.10.