What is my tax rate in Germany ?

NearFutureExpat wrote:

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.

the 45% is not only tax, isn't it? it includes health insurance and other social security contributions.
some of the online calculator only calculate the tax while other calculate all contributions. also, some assume you subtracted the tax free allowance from your salary, while for other you have to input it in some extra field. some automatically include "church tax". and so on. so you have to be a little careful in comparing these calculators.

NearFutureExpat wrote:

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

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

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€ 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 & ...) ?

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€)
unemployment: 1.5%               (=675€)
health insurance: 8.2%             (=3690€)
disability: 1.225%                     (=551.25€)
____________________________________________
total: 9326.25€

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

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€
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€
- deduct your health insurance + disability: 3690€+551.25€=4241.25€
____________________________________________________________________________
total reductions: 7041.25€

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

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

=> net wages:  26938.29€

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€. 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.

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€ is the average salary for junior software engineer.

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

I am so exited to come to Germany.

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€ is the average salary for junior software engineer.

I think ~2250€/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€ brutto per year gives you exactly 2251.63€ net per month.
50k€ brutto per year gives you exactly 2465.39€ net per month.
55k€ brutto per year gives you exactly 2674.43€ net per month.

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 ?

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 !

3 months because this is my notice period in my current job. As I stated before, I will be either in Munich or Stuttgart.