This paper estimates the incidence of corporate taxes on wages using a 20-year panel of German municipalities. Administrative linked employer-employee data allows estimating heterogeneous firm and worker effects. We set up a general theoretical framework showing that corporate taxes can have a negative effect on wages in various labor market models. Using event study designs and differences-in-dfferences models, we test the theoretical predictions. Our results indicate thatworkers in liable firms bear about 47% of the total tax burden. Empirically, we confirm the importance of labor market institutions and profit shifting possibilities for the incidence of corporate taxes on wages.