What is the Germany Income Tax?
German income tax (Lohnsteuer) is progressive from 14% to 45%, applied via a continuous formula rather than simple bands. On top sit four compulsory social insurances — pension, health, care and unemployment — each split with your employer.
Your tax class (Steuerklasse) matters considerably: Class III suits the higher earner in a married couple, Class I applies to single people.
Formula & worked example
Tax from the § 32a EStG 2026 formula: nil to €12,348, then 14%–45%
Employee social insurance ≈ 21.2% of gross, capped at the contribution ceilings (€101,400 pension and unemployment, €69,750 health and care)
Worked example: a €65,000 gross salary in Class I with no church tax. Employee social insurance is about €13,748, so roughly €50,022 is taxable and income tax comes to about €10,556. Net pay lands near €40,696 a year, or about €3,391 a month — an effective deduction rate of 37.4%.
How to use this germany income tax calculator
- Enter your annual gross salary as stated in your contract.
- Select your tax class; Class III gives a married higher earner more net pay.
- Church tax of 8–9% applies only if you are a registered church member.
- Social insurance contributions are capped above the 2026 ceilings — €101,400 for pension and unemployment, €69,750 for health and care.
Smart tips
- Married couples should compare Class III/V against Class IV/IV — the combination materially affects monthly cash flow.
- Deregistering from the church (Kirchenaustritt) removes the 8–9% church tax entirely.
- Many work expenses are deductible above the €1,230 lump sum — commuting, home office, professional development.
- Social contributions stop rising above the contribution ceilings, so very high earners see a lower marginal deduction rate.
- Filing an annual return is optional for many employees but frequently produces a refund.
Frequently asked questions
How much tax do I pay in Germany?
Income tax runs 14–45% progressively above the €12,348 basic allowance for 2026, plus roughly 21.2% employee social insurance. Total deductions typically reach 35–45% of gross.
What are German tax classes?
Six classes reflecting marital and family status. Class I is single, Class III is the higher-earning married partner, and Class V the lower-earning one.
What is the solidarity surcharge?
A 5.5% surcharge on income tax, now only payable by higher earners after the 2021 reform. For 2026 no surcharge is due until your income tax exceeds €20,350 (€40,700 if jointly assessed), and a sliding-scale zone above that caps it at 11.9% of the excess.
Do I have to pay church tax?
Only if you are a registered member of a recognised church. Formally leaving the church ends the obligation.
Want the theory behind the numbers? Browse the Money Blog for worked guides.
Written by Gurjeet Singh, Sharpen Solutions. Last reviewed 15 Oct 2026. Sources: Gesetze im Internet — EStG § 32a: Einkommensteuertarif. How we check these numbers.