How this estimate is calculated
Your employer withholds wage tax (Lohnsteuer) from each salary payment. It follows the official program of the Federal Ministry of Finance, which takes your tax class, the employee allowance and a flat amount for your social insurance contributions into account.
On top of wage tax come the solidarity surcharge, which only applies to higher incomes, and church tax if you are a member of a church that levies it: 8% of wage tax in Bavaria and Baden-Württemberg, 9% in the other states.
You also pay your share of social insurance: health, long-term care, pension and unemployment insurance. Contributions stop growing above the annual ceilings.
Income tax rates for 2026
Germany taxes income with a formula, not fixed bands: the rate rises gradually inside the first two zones. These rates apply to taxable income for a single person; married couples filing jointly pay the tax on half their joint income, twice.
| Taxable income per year | Rate |
|---|---|
| Up to €12,348 | 0% |
| €12,349 to €17,799 | 14% rising to 23.97% |
| €17,800 to €69,878 | 23.97% rising to 42% |
| €69,879 to €277,825 | 42% |
| Above €277,825 | 45% |
Taxable income is lower than gross pay: wage tax already deducts the employee allowance of €1,230 and part of your social insurance contributions.
The solidarity surcharge is 5.5% of income tax, but only once the tax passes €20,350 a year for a single person, with a gradual transition above that.
Social insurance contributions in 2026
The employee share of each contribution, and the yearly pay above which it stops growing.
| Insurance | Your share | Ceiling per year |
|---|---|---|
| Health insurance | 7.3% plus half the extra contribution | €69,750 |
| Long-term care insurance | 1.8%, plus 0.6% without children | €69,750 |
| Pension insurance | 9.3% | €101,400 |
| Unemployment insurance | 1.3% | €101,400 |
From the second child under 25, the care insurance contribution goes down by 0.25% per child, up to the fifth child.
Your employer pays roughly the same amount again on top of your gross salary. It is not taken from your pay.
German tax classes
Single people are in tax class I, or II if they are single parents. Married couples choose between III and V, where the higher earner pays less wage tax and the lower earner more, or IV for both.
The tax class only changes how much is withheld each month. Your annual tax return settles the final amount, so a couple in III and V may pay back or get back money at the end of the year.
Tax class VI applies to a second job. It has no allowances, so wage tax starts from the first euro.
Freelancers
As a freelancer (Freiberufler) you pay income tax on your profit with the same tax formula, through your annual tax return. Freelancers pay no trade tax (Gewerbesteuer).
Health and care insurance are not shared with an employer: you pay the full rate yourself, 14.6% plus the extra contribution for health and 3.6% for care, on your profit from at least €1,318.33 a month up to the ceiling. These contributions reduce your taxable income.
Most freelancers are not required to pay into the state pension, so the estimate includes none. Some professions are, for example teachers and midwives, and members of a professional pension scheme pay into that instead.
What this estimate leaves out
- Private health insurance and employer pension schemes (betriebliche Altersvorsorge).
- Allowances on your tax card, the factor method in tax class IV, and Christmas or holiday bonuses paid separately.
- Mini-jobs paying up to €603 a month.
- Expenses and deductions you can claim on your annual tax return, and the church tax cap some states offer.
- For freelancers: VAT, trade tax for businesses that are not liberal professions, and statutory pension for professions that must pay it.
Germany has no special tax regime for people moving there from abroad: newcomers pay the same wage tax and social insurance as everyone else.