1. Determining the gross salary (Bruttogehalt)
This is the monthly salary agreed upon in the employment contract before any deductions.
2. Determining your tax class (Steuerklasse)
There are six tax classes, which directly affect the amount of tax you pay. They depend on:
Marital status (single, married, widowed…)
Number of children
Partner’s income (if applicable)
3. Calculating the monthly income tax (Lohnsteuer)
Lohnsteuer is calculated based on:
Gross salary
Tax class
Child allowance (Kinderfreibetrag)
Church membership (for Kirchensteuer)
This amount is deducted directly from your salary.
4. Deduction of additional taxes (if applicable)
| Tax type | Rate / Notes |
|---|---|
| Solidarity surcharge | 5.5% of Lohnsteuer (only for high incomes) |
| Church tax | 8% or 9% of Lohnsteuer (if you are a registered church member) |
5. Deduction of social contributions (Sozialabgaben)
| Insurance type | Employee share |
|---|---|
| Pension insurance | ~9.3% |
| Health insurance | ~7.3% + additional contribution (~1.6%) |
| Unemployment insurance | ~1.3% |
| Nursing care insurance | ~1.7% |
The employer pays the other half of these contributions.
6. Result: Net salary (Nettogehalt)
After deducting:
Lohnsteuer
Additional taxes
Social contributions
the amount left is what is transferred to your bank account every month.
Employee, single, Steuerklasse 1, gross salary: €3,500:
| Deduction | Approx. amount |
|---|---|
| Lohnsteuer | €450 |
| Solidarity surcharge | €25 |
| Pension insurance | €325 |
| Health insurance | €265 |
| Unemployment insurance | €45 |
| Nursing care insurance | €70 |
| Net salary | approx. €2,320 |
All deductions are shown on your monthly payslip (Lohnabrechnung).
You may receive a tax refund through the annual tax return (Steuererklärung).
Tools like Brutto-Netto calculators help estimate deductions accurately.
Editorial note:
The team strives to provide accurate information, but errors or unconfirmed details may occur. Always consult official authorities for final information.
