German Income Tax Calculator

Germany uses a progressive tax system with five tariff zones (§32a EStG). The first €12,348 of income is tax-free in 2026 (Grundfreibetrag). Above that, the marginal rate starts at 14% and rises to 42% at €69,879. A 45% Reichensteuer applies above €277,826. Solidaritätszuschlag (5.5% of income tax) applies above the exemption threshold, which is approximately €20,350 in income tax terms for 2026.

The most common deductions include: work-related expenses above the €1,230 Arbeitnehmer-Pauschbetrag (professional development, home office at €6/day up to €1,260/year, commuting costs, work equipment), charitable donations, church tax, health and care insurance premiums (Sonderausgaben), and pension contributions — fully deductible since 2023, up to €29,344 in 2025. Keeping payslips and receipts for everything you intend to claim is essential.

Social contributions take roughly 20% of gross salary up to contribution ceilings (Beitragsbemessungsgrenze). For GKV members in 2025: health insurance ~8.2% (employee share), pension insurance 9.3%, unemployment insurance 1.3%, and long-term care 1.7–2.3% — childless employees over 23 pay an additional 0.6%. Above the Beitragsbemessungsgrenze (€8,050/month for health in 2025), the absolute contribution is capped. PKV members pay their own health premium instead of the income-based GKV rate.

Joint assessment (Zusammenveranlagung) uses Ehegattensplitting — the combined income is halved, the tariff applied, and the result doubled. This is most beneficial when there is a large income gap between partners, because the higher earner's income effectively falls into lower tax brackets. Couples with near-equal incomes see little difference. The calculator lets you compare both scenarios directly.

Rental property offers significant deductions: mortgage interest, depreciation (2–5% AfA depending on property age), maintenance costs, management fees, and insurance. If total deductible expenses exceed rental income — common in the early years — the net rental loss reduces your taxable salary directly.