Every January, German investors holding accumulating funds owe the Vorabpauschale — a small prepayment tax on a notional gain, debited automatically by German brokers. This calculator estimates yours in seconds: enter the fund value at the start and end of the year, the current Basiszins, your fund type and remaining Sparer-Pauschbetrag, and you get the January bill — or the pleasant news that it is €0.
By Kestutis Balciunas · Last reviewed: 17 July 2026 · Figures and rules are 2026-vintage estimates — verify current data before acting. Educational tool, not advice.
How the Vorabpauschale is calculated
The formula has three steps, all applied by this tool:
1 · Basisertrag = fund value on 1 January × Basiszins × 70%. The Basiszins is set by the Federal Ministry of Finance each year from bond yields (enter the current value — the default here is 2026-vintage).
2 · Vorabpauschale = the smaller of the Basisertrag and your fund’s actual gain that year. Crucially: if your fund lost value or went sideways, the Vorabpauschale is zero.
3 · The tax = Vorabpauschale × (1 − Teilfreistellung) × 26.375%. Equity funds (≥51% stocks) enjoy the 30% Teilfreistellung, so only 70% of the amount is taxable — and whatever remains of your €1,000 Sparer-Pauschbetrag offsets it before any tax is due.
Why it is a prepayment, not a penalty
Amounts taxed via Vorabpauschale raise your cost basis, so they are credited against the final bill when you eventually sell — Germany taxes you earlier, not more. Combined with the Teilfreistellung, accumulating UCITS funds remain one of Germany’s better-taxed investments, as our full Vorabpauschale walkthrough shows with worked multi-year examples. For the Acc-vs-Dist decision itself, use the accumulating vs distributing tax calculator, and for the broker side (German brokers handle all of this paperwork automatically) see the best brokers for German investors. The wider European context lives in our ETF tax efficiency guide.
These numbers make more sense with the guide
The free 12-page Starter Kit turns them into decisions: your first fund, a safe broker, and the tax basics for your country.
Frequently asked questions
Q: Is the Vorabpauschale an extra tax on top of capital gains tax?
A: No — it is a prepayment. Amounts taxed each January increase your cost basis and are credited when you sell, so the total tax over your holding period stays the same; Germany just collects part of it earlier.
Q: What happens in a year my fund loses value?
A: The Vorabpauschale is zero. It is capped at your fund’s actual gain during the year, so loss years and flat years produce no prepayment at all.
Q: Do I have to calculate and pay this myself?
A: With a German broker, no — it is calculated and debited from your settlement account automatically each January. Just keep enough cash there. With a foreign broker, you must declare it yourself in your tax return.
Q: What is the Teilfreistellung and does my ETF qualify for 30%?
A: The Teilfreistellung exempts part of all fund income from tax: 30% for equity funds holding at least 51% stocks (all typical all-world and S&P 500 UCITS ETFs qualify), 15% for mixed funds, 0% for other funds.
Q: Which Basiszins should I enter?
A: The official rate published by the Bundesfinanzministerium each January for that tax year. The calculator ships with a 2026-vintage default — always verify the current figure, as it changes yearly with interest rates.