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Across advanced democracies, economic inequality has given rise to economic segregation, creating conditions in which rich and poor individuals live in conditions of mutual isolation. While a robust literature has been devoted to understanding the causes of economic segregation, very little is known about its political consequences. This paper explores the impact of economic segregation on political participation in German municipalities between 2005 and 2020. We analyze economic segregation at the municipality level using the spatial information theory index based on fine-grained geocoded raster data and combine it with municipal-level data on election outcomes. We demonstrate that economic segregation lowers voter turnout; this effect is particularly pronounced in low-income municipalities. We then examine whether social capital can mediate the effect of economic segregation on political participation. Drawing on administrative data of all civic associations in Germany, we show that economic segregation depresses political participation the most where social capital is weak. This suggests that income levels and social ties shape the community contexts in which within-group social interactions and political mobilization take place. We complement these analyses with original survey data, demonstrating how economic segregation affects residents’ political preferences and electoral behavior. The findings provide new insights into the extent of economic segregation and how social capital can mitigate its negative socio-political consequences.