German Court to Rule on Constitutionality of Solidarity Tax in March

The Federal Constitutional Court will decide on a challenge brought by FDP lawmakers, with billions in government revenue potentially at stake.

The Federal Constitutional Court in Karlsruhe will announce its decision on the Solidarity Tax (Soli) on March 26, following a complaint by six FDP lawmakers arguing it is unconstitutional.
The Solidarity Tax, introduced to support the costs of reunification, is a 5.5% surcharge on income, corporate, and capital gains taxes, which has largely been phased out since 2021 for most taxpayers.
Currently, only high earners, corporations, and capital investors are required to pay the tax, which critics argue creates unequal treatment and violates property rights.
If the tax is declared unconstitutional, the German government could face a significant financial challenge, as the 2025 budget relies on €12.75 billion in revenue from the tax.
A ruling against the tax could also require the government to refund up to €65 billion collected since 2020, further straining public finances.