Germany federal insurance tax revenue
Germany federal insurance tax revenue stood at 14,348 EUR million in Jul 2026, according to German Federal Ministry of Finance (Bundesministerium der Finanzen). It is one of the indicators in the Federal budget execution table (Value · Monthly), with a complete series running from Jul 2025 to Jul 2026. The complete series with an interactive chart, free to download.
This indicator in the Federal budget execution table
| Indicator | 07-2026 | 07-2025 | |
|---|---|---|---|
| Federal taxes | |||
| Insurance tax | 14,348 | 13,513 | |
| Electricity tax | 2,990 | 3,792 |
Understanding germany federal insurance tax revenue
Taxation assessed on premium payments for non-life insurance policies—covering liabilities, property casualty, and vehicular damage—accrues directly to the federal budget under this entry. The tax applies to non-life insurance sectors, including property, general liability, motor vehicle damage, legal protection, and casualty insurance. Life insurance, statutory health insurance, and private medical policies are broadly exempt from this levy. Because financial insurance services are statutorily exempt from standard value-added tax, this levy functions as an independent federal indirect tax. It differs from sibling federal taxes, which are volumetric excise duties on physical consumer goods, by operating as an ad valorem percentage tax on underwriting premium contracts.
Reading this series requires recognizing the powerful calendar seasonality inherent in insurance policy renewal cycles. A substantial proportion of annual insurance policies renew at the start of the calendar year, prompting insurers to bill premiums and remit the corresponding tax in the opening months of the year. This produces an elevated revenue inflow in initial reporting periods, followed by lower, steady collections across remaining months. Month-on-month comparisons provide a completely skewed view of fiscal developments; year-on-year evaluations against the corresponding month are needed for sound analysis. Analysts must also remember that because the tax is calculated as a percentage of premium sums, rising insurance premium charges can expand tax receipts without any increase in the total volume of insured policies.
Frequently asked questions
- Which types of insurance policies are covered by this federal tax?
- The tax covers non-life insurance contracts such as motor casualty, property, liability, and accident insurance, while life and healthcare policies are largely exempt.
- Why are revenues heavily concentrated in the opening months of the year?
- Many commercial and personal insurance policies renew annually at the start of the year, leading to major premium settlements and tax remittances by insurers.
- Is this tax levied in addition to standard value-added tax?
- Insurance policies are legally exempt from turnover tax, meaning this dedicated federal levy serves as the primary indirect tax on premium transactions.