The full tax chain, from the gross dividend to the net amount.
A dividend is announced as a gross figure, and that is exactly the number you remember. What arrives in the account is something else. Between the figure in the notice and the money on the settlement account stands the tax office.
How much it takes depends on the form of the investment. Anyone planning around dividends should reckon with the net, not the gross: on single stocks the difference is a good quarter.
The dividend that counts is the one after tax. Everything before that is an announcement.
The dividend a company pays out is not the amount that lands in your account. Between gross and net lies a chain of taxes, and it falls differently depending on the form of the investment.
Single stock (without Kirchensteuer)
Net = Gross × (1 − 0.26375)
ETF distribution (equity fund, without Kirchensteuer)
Net = Gross − (Gross × 0.70 × 0.26375)
| Tax component | Single stock | ETF (equity fund) |
|---|---|---|
| Teilfreistellung (partial exemption) | 0 % | 30 % |
| Taxable share |
On single stocks: 26.375 % (Abgeltungsteuer plus Soli), and up to 27.99 % if you are liable for Kirchensteuer. On ETF distributions, an effective rate of only 18.46 % thanks to the 30 % Teilfreistellung.
30 % of the distributions from equity-fund ETFs are tax-free. This lowers the effective tax rate from 26.375 % to about 18.46 %.
Over the long run the two variants are equivalent for tax. Accumulating ETFs pay the Vorabpauschale instead of a distribution tax. The main difference is cash flow: distributing funds deliver regular payments.
| 100 % |
| 70 % |
| Abgeltungsteuer (flat 25 % tax) | On 100 % | On 70 % |
| Soli (5.5 % solidarity surcharge on the tax) | On 100 % | On 70 % |
| Effective tax rate | 26.375 % | 18.46 % |
Fund Type
Net Dividend
EUR 1.000,00Tax Burden:
EUR 0,00The Teilfreistellung (partial exemption) offsets the tax already borne at the fund level. For equity-fund ETFs (at least 51 % in equities), 30 % of all income is left tax-free.
The Teilfreistellung applies to every kind of income: distributions, capital gains on sale, and the Vorabpauschale (Germany advance lump-sum tax on accumulating funds). Your bank accounts for it automatically.
| Feature | Distributing | Accumulating |
|---|---|---|
| Cash flow | Regular payments | No payments |
| Tax on income | Distribution tax (immediately) | Vorabpauschale (yearly) |
| Reinvestment | Manual, by the investor | Automatic, inside the fund |
| Tax deferral | No | Partial (until sale) |
| Long-term effect | Equivalent | Equivalent |
Over the long run the two variants are equivalent for tax. The choice depends on your needs: anyone who needs regular income chooses distributing; anyone saving for the long term prefers accumulating.
Kernaussagen
See your dividends after tax
Investboard takes your distributions down to the net, after Teilfreistellung and Abgeltungsteuer, across every position in your portfolio.
See net dividends →