Germany Salary After Tax Calculator

How Salary After Tax is Calculated in Germany

Germany has a comprehensive tax and social security system. Your net salary (Nettolohn) is calculated by deducting income tax, solidarity surcharge, and social security contributions from your gross salary (Bruttolohn).

Basic Tax-Free Allowance

Currently, there is a basic tax-free allowance. You don't pay income tax on earnings below this amount. This ensures that everyone has a minimum amount of income that remains untaxed to cover basic living expenses.

Income Tax (Einkommensteuer)

Germany uses a progressive tax system where the tax rate increases gradually as your income rises. The highest rate applies to very high incomes.

Social Security Contributions

Social security contributions in Germany cover health insurance, pension insurance, unemployment insurance, and long-term care insurance. Together, these typically amount to about 20% of your gross salary, with your employer paying a similar amount.

Tax Classes (Steuerklassen)

Germany has six tax classes that determine how much tax is withheld from your salary. Singles are typically in class I, while married couples can choose between classes III, IV, or V depending on their income situation. The tax class affects monthly withholding but not your final tax liability.