What is my tax rate in Germany ?

5POSTS

13 years ago

Hello,

I do know if this is the right section for my question, but I will post it anyway.

I am planning to relocate to Germany upon a job offer as a Software Engineer, and I would like to know what might be the tax percentage that will be cut from my salary.

My research say that percentage can be up to 45% of the salary, and I have tried some online calculators but each one is giving me a different value from the others.

So what would be the tax percentage for me knowing that I'm unmarried, no children, 25 years old ?

Please let me know if these information is not enough.

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NearFutureExpat New member

5POSTS

13 years ago

Hi vroni,

vroni wrote:
the 45% is not only tax, isn't it? it includes health insurance and other social security contributions.

Yes exactly.

vroni wrote:
it depends on your salary and the state you live in.

My salary would be around 45k聙 gross, I do not know about the states but the company is based in Munich and Stuttgart, I do not know which one I will be working in.

By the way, all calculators had the same fields (I think), tax category was automatically set to 'I', church tax '0', kids '0'. I do not know about the free allowance.

Does that help you rounding up the percentage of my tax & other (health insurance & ...) ?

vroni Active member

98POSTS

13 years ago

so I did some research and this is what I have found. but I don't
guaranty that it is correct.

the social contributions are easy. you pay:
pension: 9.8% of your income (=4410聙)
unemployment: 1.5% (=675聙)
health insurance: 8.2% (=3690聙)
disability: 1.225% (=551.25聙)
____________________________________________
total: 9326.25聙

for the income tax there are different states that depend on your TAXABLE income.
for a taxable income between 13.470 聙 and 52.881 聙 you pay
tax=(228.74*z+2397)*z+1038
where z is 1/10000 of your taxable income that exceeds 13469聙.

there are a lot of things you can deduct from your gross income to get your taxable income.
here a few standard deductions:
werbungskostenpauschale+special payments: 1036聙
you can deduct parts of your social contributions:
- deduct 70% of your and your employers contribution to pension - your employers part, so basically 40% of your pension payments: 1764聙
- deduct your health insurance + disability: 3690聙+551.25聙=4241.25聙
____________________________________________________________________________
total reductions: 7041.25聙

=> taxable income = 45000聙-7041.25聙 = 37958.75聙

=> z = (37958.75-13469)/10000 = 2.448975
=> tax = 8280.06聙
then you pay an additional 5.5% solidarity surcharge on your income tax: 455.40聙
total tax: 8735.46聙
=> total deductions: 18061.71聙

=> net wages: 26938.29聙

so that's 40.14%. but you can deduct other things from your gross income as well. there are some deductions based on the distance between your place of work and where you live, if you brought office supplies, internet if you need it for your job, cost for a bank account, and many, many more.

it's a fairly recent law that you can deduct basically all of your health and disability payments from your gross income. I found that some of the online calculators do not take this into consideration and use the old max. deduction of 1900聙. that may be why you got higher percentages in some of the online calculators. I could not find any differences in tax between the two states you may be working in.

3 members reacted to this post

NearFutureExpat New member

5POSTS

13 years ago

Can't thank you enough for this detailed information. I believe this will help not only me but a lot other people in the same situation as 45k聙 is the average salary for junior software engineer.

I think ~2250聙/month net can provide a decent and more than average life quality.

I am so exited to come to Germany.

1 member reacted to this post

chrifus1982 Guest

0POSTS

13 years ago

NearFutureExpat wrote:
Can't thank you enough for this detailed information. I believe this will help not only me but a lot other people in the same situation as 45k聙 is the average salary for junior software engineer.

I think ~2250聙/month net can provide a decent and more than average life quality.

I am so exited to come to Germany.

Hello,

I'm looking to move to Germany too

Where are you from, India ?

45k聙 brutto per year gives you exactly 2251.63聙 net per month.
50k聙 brutto per year gives you exactly 2465.39聙 net per month.
55k聙 brutto per year gives you exactly 2674.43聙 net per month.

1 member reacted to this post

NearFutureExpat New member

5POSTS

13 years ago

Hi chrifus1982,

We are actually sort of neighbours, I'm from Morocco moving to Germany in about 3 months.

By the way, I tried to display my path (Morocco => Germany) in my signature but I could not, any idea ?

chrifus1982 Guest

0POSTS

13 years ago

NearFutureExpat wrote:
Hi chrifus1982,

We are actually sort of neighbours, I'm from Morocco moving to Germany in about 3 months.

By the way, I tried to display my path (Morocco => Germany) in my signature but I could not, any idea ?

Oh I see !

Why 3 months ?
Where are you going to work ?

No idea for your problem !