What the law says
The German tax year is the calendar year, and the figures below are the 2026 rules as the calculator models them. You are taxed as a resident if you have a home in Germany or your habitual stay is longer than about six months, regardless of your visa or citizenship. Your employer withholds wage tax (Lohnsteuer) every month according to your tax class, and also deducts your share of social insurance. The annual tax return (Steuererklärung) then settles the exact bill for the year.
The calculator works out the full-year result in one step, so it matches the final annual figures, not each monthly payslip.
Income tax rates
German income tax is not a set of flat bands. Inside each zone the rate climbs smoothly along a formula, so the figures below are the marginal rate at the start and end of each zone. The first €12,348 of taxable income is tax-free. Taxable income is your gross salary less the €1,230 employee lump sum for work costs, a €36 allowance for other expenses and your pension, health and long-term care contributions, which is how the calculator applies it.
| Taxable income | Marginal rate |
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| Up to €12,348 | 0% |
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| €12,349 to €17,799 | rises from 14% to about 24% |
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| €17,800 to €69,878 | rises from about 24% to 42% |
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| €69,879 to €277,825 | 42% |
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| Over €277,825 | 45% |
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Tax classes (Steuerklassen)
Employees are placed in a tax class that decides how much wage tax is withheld each month. Your employer retrieves your class electronically from the tax office. Class I is for single people. Class II is for single parents. Class III and class V are a pair for married couples: III withholds as if the couple's income were split in half (the splitting tariff), and V, for the partner with the lower income, withholds more. Class IV for both partners taxes each as if single. Class VI applies to a second job.
The class changes only the monthly withholding. The final tax for the year comes from the tax return. The calculator models class I and class III, and in class III it applies the splitting tariff to a household with one earner.
Solidarity surcharge and church tax
The solidarity surcharge (Solidaritätszuschlag, or Soli) is 5.5% of income tax, but only once your income tax passes a threshold. The calculator uses €20,350 of income tax for single people and €40,700 for class III couples, with a gradual phase-in just above it. Most employees on a mid-level salary pay no Soli at all.
Church tax (Kirchensteuer) applies only if you are a registered member of a church that levies it. It is 9% of your income tax in most states and 8% in Bavaria and Baden-Württemberg.
Social insurance contributions
The employee share of statutory social insurance is deducted from your gross salary each month. The employer pays a roughly matching share on top, which is not part of your take-home figure. Contributions are charged only up to an annual ceiling: €101,400 for pension and unemployment insurance, and €69,750 for health and long-term care insurance.
| Contribution | Your share |
|---|
| Pension insurance | 9.3% |
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| Unemployment insurance | 1.3% |
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| Health insurance | 7.3% plus half of your fund's add-on (2.9% on average, so 1.45%) |
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| Long-term care insurance | 1.8%, or 2.4% if you have no children |
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How to pay less tax, legally
These are mainstream, legal ways to lower German tax or build long-term savings. Which ones suit you depends on your residence status, family situation and employer.
Pay into an employer pension (Entgeltumwandlung)
Suits: employees whose employer offers a company pension (betriebliche Altersvorsorge). Contributions come out of gross pay, so they are free of wage tax and, up to limits, of social insurance, and your take-home pay falls by less than the contribution. Many employers add a subsidy.
Caveat: the money is for retirement and is taxed when paid out. Ask your employer for the exact terms and limits.
Claim work costs above the €1,230 lump sum
Suits: anyone with higher work costs, for example a long commute, a home office, tools, training or the costs of a job-related move. The tax office applies the €1,230 lump sum automatically, and you only gain by filing a return with proof of costs above it.
Caveat: you need receipts and the costs must relate to your job. The calculator only applies the lump sum.
Choose the tax class combination with care (married couples)
Suits: married couples where the two incomes differ. The class III and V pair gives the higher earner more cash each month, and class IV for both is closer to what each owes. Either way, the return applies the same joint result, and a III and V pair means you must file a return.
Caveat: a class V partner has a high monthly withholding, and a couple who choose III and V can owe tax afterwards. Plan for that and check your own numbers.
Private pension saving with state support (Riester)
Suits: employees who pay into the statutory pension and want a supported private pension. The state adds allowances, and the contributions can also be deducted up to a ceiling.
Caveat: contracts differ in cost and flexibility, so compare providers and read the terms before you sign.
Frequently asked questions
How much tax do I pay on €65,000 in Germany?
A single, childless employee in tax class I pays €10,772 in income tax and €14,138 in social insurance, and keeps about €40,091. A married sole earner in class III keeps about €45,281. Try your own figure in the Global Income Tax Calculator.
What are the German tax classes, and why does the tax return even them out?
The tax class decides how much wage tax your employer withholds each month. It does not decide the final tax. For a married couple, class III withholds as if the two incomes were split in half, and class V, for the other partner, withholds more to make up for it. Each month the total can be too low or too high compared with the real bill.
The final bill comes from the tax return, where a married couple's combined income is taxed with the splitting tariff whatever the classes were. The difference is then refunded or collected. If you choose III and V, you must file a return. The calculator shows the full-year result, so a monthly payslip can differ from it.
Do I have to pay church tax in Germany, and how do I leave the church?
Church tax is charged only if you are registered as a member of a church that levies it, such as the Catholic or Protestant church. When you register your address in Germany you are asked for your religion, and what you state decides whether church tax is withheld. It is 9% of your income tax, or 8% in Bavaria and Baden-Württemberg.
To stop paying, you declare your exit at the competent office, which is the local civil registry or court depending on the state, and a fee may apply. The tax then stops shortly afterwards, typically from the end of that month. Leaving also has consequences inside the church, so decide for yourself.
Do I have to pay the solidarity surcharge in Germany?
Only if your income tax is above a threshold. The calculator uses €20,350 of annual income tax for single people and €40,700 for class III couples. Below it the surcharge is zero, and just above it the surcharge phases in gradually up to 5.5% of income tax. In the single €65,000 example the income tax is €10,772, so no Soli is charged.
Is health insurance a fixed rate in Germany?
Only partly. The general rate is 14.6% of salary, split between you and your employer (7.3% each). On top, each health fund sets its own add-on, which averages 2.9% in 2026 and which you also share equally. The calculator uses the average and lets you change it. Contributions stop at a ceiling of €69,750 of salary.
Does my employer also pay social insurance on top of my salary?
Yes. Your employer pays a roughly matching share of pension, unemployment, health and long-term care insurance on top of your gross salary. It does not reduce your take-home pay, and the calculator shows only your own share.