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Germany's church tax revenue rises despite declining membership

Created at 11 Aug · 2:51 AM1 source↑ Market-relevant
IN SHORT

Despite hundreds of thousands leaving Germany's Catholic and Protestant churches annually, tax revenue has increased due to rising wages and the progressive tax system, leading to higher contributions from remaining members.

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Key Numbers

660,000people quit churches in 2025
€12.5 billionchurch tax collected in 2025
€12.4 billionchurch tax collected in 2024
8 or 9 percentchurch tax rate
29 millionpeople paid church tax in 2021
€50,000gross annual income example
€600annual church tax for €50,000 earner
€70,000gross annual income example
1,000annual church tax for €70,000 earner
310,000left Catholic Church in 2025
350,000left Protestant churches in 2025
1.93 percentchurch tax revenue increase in 2025
6.65 percentstate revenue from wage and income taxes in 2025

Who's Involved

Evangelical Church in Germany
Umbrella organization for Germany's regional Protestant churches
Matthias Kopp
Director of communications for the German Bishops’ Conference
Jana Keil
33-year-old accountant from Berlin who left the church
Lukas Heinich
23-year-old working student who left the church
Zareh Asatryan
Professor of empirical economics at the University of Münster
Germany's church tax revenue rises despite declining membership

↳ Why This Matters

The situation highlights the complex interplay between religious affiliation, economic factors, and public finances in Germany, raising questions about the long-term sustainability of church funding models in the face of declining membership.

Key facts

  • Approximately 660,000 people formally left Germany's Catholic and Protestant churches in 2025.
  • Church tax revenue for the 2025 fiscal year reached over €12.5 billion.
  • The increase in revenue is attributed to rising wages and the progressive nature of Germany's income tax system.
  • Church tax is levied as a percentage of an individual's income tax liability.
  • Reasons cited for leaving include financial concerns, scandals, and a decreased sense of connection to religious institutions.

Germany is experiencing a financial paradox where church tax revenues are rising despite a significant annual exodus of registered members from its Catholic and Protestant churches. In 2025, approximately 660,000 individuals formally left their religious communities, yet the collected church tax exceeded €12.5 billion, an increase from the previous year. This apparent contradiction is explained by Germany's progressive income tax system and rising wages, which result in higher tax contributions from the remaining, often higher-earning, members.

The church tax, levied at 8% or 9% of income tax liability, is automatically charged to registered members, regardless of their attendance. To cease payment, individuals must undergo a formal 'church exit' process. While some leave due to financial reasons or scandals that have eroded the church's credibility, others cite a growing disconnect from religious institutions.

Experts suggest that those remaining in the church system are likely higher earners, whose increased incomes due to inflation and real wage growth naturally lead to greater tax contributions. However, this trend is seen as potentially temporary. Long-term projections indicate a significant decline in church tax revenue in the coming decades as membership continues to fall. Protestant churches are already implementing long-term planning to adapt to anticipated income reductions, emphasizing the importance of the church tax for their religious, social, and charitable work.

Frequently asked questions

Rising wages and Germany's progressive tax system mean that the remaining church members, who are often higher earners, are paying more in church tax.

The church tax is calculated as a percentage (8% or 9%) of an individual's income tax liability.

Reasons include financial considerations, scandals within the church, and a feeling of decreased connection to religious institutions.

Long-term projections suggest a significant decline in church tax revenue as church membership continues to decrease.

What Happens Next

01Long-term projections indicate a significant decline in church tax revenue over the coming decades.
02Churches are developing long-term plans to manage anticipated future income decreases.

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Cadence

How It Developed

Hundreds of thousands of Germans formally quit Catholic and Protestant churches in 2025.
Despite the exodus, church tax revenue for 2025 exceeded €12.5 billion.
Rising wages and Germany's progressive tax system mean remaining members pay more.
Church tax is calculated as a percentage of income tax liability.
Reasons for leaving include financial, moral, and reduced connection to the church.
Long-term projections indicate a significant decline in church tax revenue.
Churches are planning for future income decreases.

Sources

T1
Germany’s modern miracle: Churches are losing believers but gaining moneyPOLITICO Europe

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