Germany Salary Calculator
Germany calculates income tax with a continuous formula rather than fixed brackets, running from 0% up to 45%, with a solidarity surcharge on higher incomes and optional church tax. Social-security contributions (pension, health, care and unemployment) add roughly 20% on the employee side.
Example: €45,000 gross in Germany
A 12-payment employee salary, 2026 rates — computed by the Saldora API.
Net annual
€29,846
Net monthly
€2,487
Income tax
€5,367
Effective rate
33.7%
How salary tax works in Germany
- Income tax: formula-based, 0% up to the basic allowance, up to 45%
- Social security ≈ 20% employee share (pension, health, care, unemployment)
- Solidarity surcharge applies above higher-income thresholds
- Optional church tax (8–9%) depending on state and membership
- Freelancers can use the Kleinunternehmer VAT exemption below the threshold
Self-employed with modest revenue? The Kleinunternehmer regime exempts you from charging VAT — select it in Freelancer mode.
Germany salary tax — frequently asked questions
How is German income tax calculated?
Germany uses a continuous mathematical formula (not fixed brackets), so your marginal rate rises smoothly from 0% at the basic tax-free allowance up to 45%. Our calculator implements that official formula.
Does it include social security contributions?
Yes — pension, health, long-term care and unemployment insurance are all calculated on the employee side (about 20% combined), plus the matching employer cost.
What is the Kleinunternehmer regime?
It's a small-business VAT exemption for freelancers below a revenue threshold, meaning you don't charge or remit VAT. Choose it in Freelancer mode to see the effect.
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Estimates based on publicly available 2026 tax rules for Germany. For informational purposes only — not tax advice. Consult a qualified tax advisor for your specific situation.