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Progression (Tax Rate)

The tax rate rises with income.

The income tax rate is progressive: as income rises, the tax rate increases. As a result, higher incomes are proportionally more heavily burdened. Certain tax-free wage replacement benefits raise the tax rate for the remaining income through the progression proviso.

The relevant statutes

§ 32a EStG

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General explanation for self-help, not legal advice (RDG). Individual cases may differ: if in doubt, contact a consumer advice center or a lawyer.