What is Lohnsteuer in Germany and how is it calculated?
Lohnsteuer is a tax that is deducted directly from an employee’s monthly gross salary in Germany and automatically transferred to the tax office (Finanzamt).
It is not a separate tax, but rather a prepayment of the annual income tax (Einkommensteuer), which is calculated on the basis of a person’s total yearly income.
Employees (Arbeitnehmer) pay Lohnsteuer.
The employer (Arbeitgeber) is responsible for calculating, withholding and transferring it to the Finanzamt.
The amount of Lohnsteuer depends on several factors:
| Factor | Effect |
|---|---|
| Monthly gross salary (Bruttolohn) | The higher the gross salary, the higher the tax |
| Tax class (Steuerklasse) | e.g. Steuerklasse 3 leads to lower tax than class 1 |
| Number of children (Kinderfreibetrag) | Child allowances reduce the tax burden |
| Church membership (Kirchensteuerpflicht) | If you are a church member, church tax is added |
| Federal state (Bundesland) | Only affects the church tax (8 % or 9 %) |
From your gross salary, the following amounts are typically deducted:
| Type of deduction | Notes |
|---|---|
| Lohnsteuer | Basic wage tax / advance payment of income tax |
| Solidaritätszuschlag | 5.5 % of Lohnsteuer (for higher incomes only) |
| Kirchensteuer | 8–9 % of Lohnsteuer (if you are a member of a church) |
| Social contributions (Sozialabgaben) | pension, health, unemployment and long-term care insurance |
Single employee (Steuerklasse 1) with a monthly gross salary of €3,500
| Deduction | Approx. amount (€ per month) |
|---|---|
| Lohnsteuer | ~ €450 |
| Solidaritätszuschlag | ~ €25 |
| Rentenversicherung | ~ €325 |
| Krankenversicherung | ~ €265 |
| Arbeitslosenversicherung | ~ €45 |
| Pflegeversicherung | ~ €70 |
| Net salary (Netto) | ~ €2,320 |
These figures are approximate and may vary depending on personal situation, health insurance, federal state and other parameters.
Monthly, together with the payroll run – you see it on your pay slip (Lohnabrechnung) as a separate item.
At the end of the year, when you file your tax return (Steuererklärung), your actual annual income tax is calculated:
If you have paid too much Lohnsteuer, you will receive a tax refund.
If you have paid too little, you will have to pay the difference.
| German term | English meaning | Arabic meaning |
|---|---|---|
| Lohnsteuer | wage tax | ضريبة الأجور |
| Einkommensteuer | income tax | ضريبة الدخل |
| Steuerklasse | tax class | الفئة الضريبية |
| Finanzamt | tax office | مكتب الضرائب |
| Netto / Brutto | net / gross | الصافي / الإجمالي |
| Sozialabgaben | social security contributions | استقطاعات التأمينات |
The editorial team of our website strives to provide accurate information based on intensive research and multiple sources. However, errors may occur or some details may not be fully confirmed. Therefore, please consider the information in this article as an initial guideline only, and always contact the competent tax office or a professional tax adviser for binding and up-to-date information.
