Tax

Tax

To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...

es in Germany

Germany

Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

—being a Federal Republic

Federation

A federation , also known as a federal state, is a type of sovereign state characterized by a union of partially self-governing states or regions united by a central government...

—are levied by the Federation (Bund), the States

States of Germany

Germany is made up of sixteen which are partly sovereign constituent states of the Federal Republic of Germany. Land literally translates as "country", and constitutionally speaking, they are constituent countries...

 (Länder) as well as the Municipalities

Municipalities of Germany

Municipalities are the lowest level of territorial division in Germany. This may be the fourth level of territorial division in Germany, apart from those states which include Regierungsbezirke , where municipalities then become the fifth level.-Overview:With more than 3,400,000 inhabitants, the...

 (Gemeinden). Many direct and indirect taxes exist, whereof income tax

Income tax

An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...

 and VAT

Value added tax

A value added tax or value-added tax is a form of consumption tax. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the "value added" to a product, material or service, from an accounting point of view, by this stage of its...

 are the most relevant. The German word for tax is die Steuer which originates from the Old High German

Old High German

The term Old High German refers to the earliest stage of the German language and it conventionally covers the period from around 500 to 1050. Coherent written texts do not appear until the second half of the 8th century, and some treat the period before 750 as 'prehistoric' and date the start of...

 word stiura meaning help. It should not be confused with the word das Steuer, which means steering

Steering

Steering is the term applied to the collection of components, linkages, etc. which will allow a vessel or vehicle to follow the desired course...

or helm.
The German constitution (Grundgesetz) lays down the principles governing taxation in the following articles:

• The ability-to-pay principle (Art.