Germany's federal and state government tax revenues grew 2.6% from a year earlier in May 2025, easing sharply from a 10.2% rise in the previous month, the finance ministry said on Friday. The tax growth also slowed compared with rises of 11.1% in March and 8.1% in February. Total tax revenue came in at EUR 62.8 billion (USD 72.05 billion) in May, according to the ministry's monthly report. Income and sales taxes increased, but there was no significant yearly growth in withholding tax on interest and capital gains for the first time since May 2023. For the first five months of 2025, tax revenue rose 8.3% year-on-year to EUR 349 billion. Income tax growth is expected to ease in 2025, as wage increases agreed in collective bargaining deals are increasingly included in the basis for comparison, and the labor market also remains subdued.