Do you REALLY pay 42% Income Tax in Germany?
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- Опубликовано: 5 авг 2024
- Learn how the income tax is calculated in Germany. It's not as high as you might think!
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⏰ Timestamps:
00:00 - Introduction
01:12 - Taxable Income
02:04 - Income tax rate
03:33 - Wage Tax in Germany explained
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The existence of this channel is truly a blessing for us expats in Germany. Thank you for the great content! 👍🏻
It's a pity this in completely untrue !
Hi Jen, Yvonne, I am moving to Germany from the UK in about month. I stumbled onto your channel as I was searching information about taxes. You guys are super clear and the content is so helpful to me. I will BINGE your channel within the next few days/weeks. Thanks a million, and keep it up!
I am sorry, what? My paycheck has ~10k brutto, and my netto is hardly 5k every single month.
Why now sugar coating the reality? Lets use the facts, yes perhaps it is not named “income tax”, but what matters me and everyone else is how much of net you receive…
It depends. Net of course is important, but what needs to be taken into account is what you need to use that net for. Do you still need to pay health insurance from it, do you need to build a cushion in case of unemployment, do you still need to pay for schooling for your kids, etc. The system in Germany is definitely not for everyone. Our goal is to educate and help those that want to move or are in Germany to understand how things work and feel empowered.
@@simplegermany The perfect reply to every other pal at table conversations about my moving. 😉 Thank you! That is right and need only be understood once and for all.
Very comprehensive. Keep up the great work. I moved here last year and your content helps a ton! 🙂
Your vibe is really good. I like just listening as it feels rare to me that influencers actually are sharing energy, which is what you really do. Keep the good vibes coming. I would listen to pretty any topic you would cover.
Wow - thank you for your kind words! 🤩
An example of good content! No clickbait, no nonsense intro or useless info. You guys should do podcasts sometime.
No, it is actually more., I get taken like 43% out of my salary. And also a high VAT on everything you buy.
As we mention in the video, wage tax is part of the deductions. The rest are social contributions. VAT varies from country to country. Germany is in the middle compared to other EU countries. It’s always a matter of what you’re comparing it to.
Exactly… I also get taken exactly 43%, it is a theft. Just paying over 900€ montly for basic health insurance is outrageous
@@Micha-bp5om Come to Florida, beats Germany in every sense.
@@cineffect I would love to but I am afraid to move alone :( already did the step to move to Germany and now kinda find it comfortable, despite the huge taxes.
Thank you for your time. I really love the way you explain it simply. I'm very lucky to find this channel.😊
As always clear, simple and super duper helpful 😊. Thank you Jen & Yvonne 😊
Excellent video! Thank you for clarifying this in a very complete and simple way!
Very useful info and clear explanation as always! Danke schön.
I don’t pay 42% income tax, but the total deducted from my income is 43% and don’t even pay curch tax, otherwise it would have been higher. 🤢
Yes ,ladies are funny
Hey 👋 I'm coming to Germany for my Masters, is it really worth it, and can I save money in Germany
@@user-tr8nu8cy6p save money??? haha you must be delusional to think that lmao
@@user-tr8nu8cy6p same here
Thank you so much for this wonderful clarification.
Omg guys this content is amazing and a blessing! What a great explanation and beautiful couple. Thank you!
This is a bit misleading, even if it’s not called income tax I still pay 43,3 and I’m not making 600k a a year !
What’s matter is the net income, and before starting the conversion about the health insurance or the rent, search it first what you will get from the rent, all of us will be poor if we are just depending on the rent system
I agree with you, the video was confusing and misleading as atlast 42 percent is still deducted if you make 85000 because of health and pension and social contribution.
Exactly, 43% of my brutto salary is deducted! I only see 57% in my bank account. 😡 and I earn 100k, I get under 5000€ monthly😢
Thanks for sharing this valuable information.
Great information. Thanks 😊
Amazing job ladies!! Keep up the amazing content!!
Thanks for another very helpful video, girls.
Crystal clear briefing 👌
Good video, well explained!
Thank you guys. I just moved to Germany and I'm following your tips to guide my journey. Yesterday I went to the Finanzamt because I need my social number with some urgency because I can't wait the 2 weeks until get it via mail. They changed the law (at least here where I live) and you only get the Steueridentifikationsnummer. You will have the Sozialversicherungsnummer when you get your first job. Just want to share it with you. Good luck on the target. Cheersss!
nice video, thanks for explaining.. very helpful. danke
I love you both so much..!! I catching up on all you videos and just love both of your vibes and genuine personalities..
You are some of very few youtubers who are so to the point without exaggerating on anything; presenting things as they are.
By the way, I have a suggestion for you to grow your channel; and that is, you should shoot most of your videos outside of your studio at interesting places so that it becomes a bit more real world.
At last thank you two for your genuine informations!
Thanks for your suggestion!
I always wondered why the numbers mentioned on general forums never matched the actual tax I pay. Great content. Dankeschön 🙏
A great subject to explain and clarify, especially for a newcomer person who wanting to live in Germany. Keep Up§ .
Große Liebe aus Marokko!
You’ve done it again girls, great info great video Vielen Dank
Just found this channel! Love it! Thank you ladies ❤❤❤
I really hope you reach your goal of 50,000 subscribers. You have a wonderful channel.😊❤
Thank you! 😊
I second that
Great job guys keep it up😊
in short, Germany is great country if you do not earn much money and even gathering social benefits from state. Germany is not that great, if you are hard worker and earn little bit much money....
As long as you are young, healthy, childless, there are better countries, but...
The exact same in ireland (in fact id say most of the EU follows this)
So it is great for people who do not earn much money, but bad for people who do not earn much money? 😂
There are better options, if you can pay everything by your own, in every life situation. This is the case, if you are not depending on your income and if you are able to life from your net worth.
I disagree … I earned a little bit more than the average German, around 70 K gross in my final years, I was always a “hard worker” (retired now) and that was more than I would have earned in my job in the USA (my income went up immediately when I returned to Germany), and I feel I was treated well in Germany and have had a good life.
What many foreigners proclaim to be “high taxes”, is actually the share of social security payments also deducted from the gross pay: health insurance, long term care insurance, retirement, unemployment.
AND I NEVER MINDED PAYING SUCH HIGH SOCIAL SECURITY PAYMENTS, and was “freiwillig” insured in the GKV (Gesetzliche Krankenversicherung) for the last 15 years.
PS:
Together with my husband, who was a worker with on site training, no formal job education (Ausbildung) and therefore earned much less, our final income tax mostly came out to around 21 to 23 percent, after all deductions.
I have subscribed your channel guizz.... Really very good content, keep it up
Oh my my! Guys this is the best explanation of German tax system, which is very complicated, but they both are awesome. Thanks a ton for this.
it would be nice to see content in regard to family reunion visas and residency permits in Germany, conditions, rules, and work permits, keep up the great job!!!
Great work 🎉
Correct, BUT: Due to the progression, on every Euro you earn more than 58.597€ (for 2022) you pay 42% income tax. Which is not very motivating and the reason why many expats take Germany only as a means to prepare for the jump across the pond. This is an amout of money which you easily earn with Master degree in engineering with a few years of experience.
At the same income level the US is at 22% all the way up to over $90k income per year vs Germany at 42%.. both progressive. My health insurance is $49.95/month in the US. Inheritance tax (for me) in Germany would be 11% vs 0% in the US. Capital gains tax would be 15% in the US and 25% in Germany (on money I made off selling a US property!) My GF lives in Germany, but we will continue to be a 6 month a year couple due to the expenses re: living in Germany.
Love you guys ❤❤
Thanks a lot!
Great content
Wow, thank you :)
I love y'all.
am learning German going for B1 now.
According to the OECD the total tax burden in Germany is 47.8% for single household average income earners, which is the second highest (after Belgium) in Europe.
And what do people in other countries pay extra? US for example
That must be marginal tax again.
According to dastatis the average (not median) income in 2022 has been 4105€.
Using the Salary Calculator from arbeitnow, the netto comes out to 2.635,31€
Giving a total tax (inclusiv health-, pension-, care-, and Unemployment Insurance which are technically not taxes) of 35,8% not 47,8%.
And taxes did not increase much from 2022 to 2023, if even at all.
@@arnodobler1096 I can tell you that in the US the progressive rate is only 22% all the way up to earning over $90k compared to Germany at 42%.
I assume they added mandatory health insurance and social security into it?
@@garrett7101add the state income tax, in many states
It's not just income tax rather all other deductions which makes gross to net reduced at 42% or more, things like solidarity surcharge etc - it's a bummer
Yeah, solidarity is a bummer. Others should just f@ck the hell off.
I don't understand why they didn't abolished "solidarity surcharge" aka extra tax entirely. It's truly a bummer to have always calculate it into high incomes and capital gains. They simply should make it 43% flat.
Very well explained (and this comes from a tax consultant).
7:20 OMG with this graph I finally understand this system. By the way, I‘m german, grew up here and am paying taxes for more than 10 years - and still have no clue how this works. 😅
Wow very informative video! Got a better understanding of German taxes that my home country now 😅
Hahaha Can totally relate. 😅 A Masterpiece!!
Hi , I love your videos. They are highly informative and extremely important for people coming from other countries to Germany . I feel your videos deserve a higher audience and especially Indian community , which is ever increasing in Germany . Please let me know if there is a way to connect to you and try to explore the opportunity together . Thanks
I was really disappointed that I am paying a lot of taxes here in Germany. But that cleared it out. Im dont get 35 percent of my salary which means I m paying a lot to social benefits of others. Also, in germany we have so many people enjoying unemployment benifit and doing black work, and also subletting a couple of apartments in Berlin. As a person who have masters degree I am really poor w.r.t them. which shows the system has its own loop holes
Underated Channel!!! Subscribed!
Thank you so much! 😊
@@simplegermany Welcome!!! and thank you very much for uploading such a valuable content!
Thanks!
Thanks for your support!
Wonderful explanation! You leveled up with this video! I already know how tough the topic is, just about anytime and in any environment. It all makes sense, and these are only firm numbers. I do support the stances behind the design of the tax system and thanks to you, I can now shut some "friends" mouths about how almost stupid would I be to go to Germany, when after taxes I'd be getting no different than here. Well, noo. 😂I had known the basis of how taxes work, but I didn't have the means to explain that and not get laughed at or tired of useless arguing aiming at nothing in particular.
*DISCLAIMER* When I say you leveled up, that is in no way to mean you were previously a level down. 🤣 This is all such hard work, such no-compromise research and writing and.. Woow, great visual graphs every time! I mean this is one to bring clarity where there's fear and to prompt real careful listening, because every point is PRECISE. Thank you, girls! So timely for me. 😃 And Kudos on your triathlon experience yesterday! 🥇
Thanks a lot Fanny! Happy to hear that our explanations are as clear as we intended them to be and that the effort pays off! 😊
I subscribed today.
A simple brutto netto calculation yields the following result: a single person with no kids and no church tax making 7k a month takes home a net income of 4150 euros. 4150 is 59% of 7000, meaning this person is at an effective tax rate of %41. This is beyond bonkers in my opinion. Anyone making less than 10k a month should have less than 30% effective tax rate. Making 10k a month in Germany doesn't make you wealthy by any means.
This system is in full supportive of generational wealth distribution. Example: an expat coming to Germany from a 3rd world country usually has less than 50k total net worth. Depending on the country he/she is coming from, chances are there aren't any inheritance to talk about. However, most german 20-somethings and 30-somethings are potential future millionaires as wealth is passed on from their grandparents to parents and so on. Wanna tax inequality? Tax THAT.
There is an inheritance tax for that
Even though I agree with you that tax rates are still high, you forget that for that 41% you basically get free education, free health care system, unemployment insurance, good roads, clean air (unless you want to live in the middle of a city) and public safety. Regarding generational wealth support: if anything then the German system does really not support that. The inheritance tax is actually really high which varies between 7-50%.
See below:
Up €75,000 - Tax Class I - 7% | Tax Class II - 15% | Tax Class III - 30%
€75,000-€300,000 - Tax Class I - 11% | Tax Class II - 20% | Tax Class III - 30%
€300,000-€600,000 - Tax Class I - 15% | Tax Class II - 25% | Tax Class III - 30%
€600,000-€6,000,000 - Tax Class I - 19% | Tax Class II - 30% | Tax Class III - 30%
€6,000,000-€13,000,000 - Tax Class I - 23% | Tax Class II - 35% | Tax Class III - 50%
€13,000,000-€26,000,000 - Tax Class I - 27% | Tax Class II - 40% | Tax Class III - 50%
More than €26,000,000 - Tax Class I - 30% | Tax Class II - 43% | Tax Class III - 50%
@@Panicradio I'm aware, and really grateful for all those rights and benefits we have here. I have been working for an American company remotely from Germany. The differences of rights and benefits I have vs my colleagues in the US are lightyears different.
I'm not saying that Germany should scrape off it's social benefits and policies in that area. What I'm saying is that it should figure out a way to improve the existing system without punishing it's low and middle class with such high tax rates. Look at Switzerland. Or The Netherlands (and their 30% tax exemption rule). When it comes to social benefits, they are pretty much the same as Germany (if not better) yet the whole system works better there, i.e., less waiting for doctors or appointments at government offices AND less taxes.
@@epazzaia I'm aware :) Do yourself a favor and look up the inheritance tax brackets and corresponding percentages. In order to get taxed 42% for your inheritance, you need to inherit something worth over 20 million :)
In your calculation you mix up insurance payments (pension 'fund', healthcare, care) with the actual income tax which is way lower at roughly 23% with possible deductions thereafter. When comparing with US workers you need to add up the employers' part of the insurances as well. So 7k EUR a month would eventually convert to roughly 8k EUR/Mo.
These videos are great. Can you make a video on Tax Returns? How much can be availed? How to avail? When to file tax return? When will the money come to the account? Etc.
We already have a video on the topic and suggest for you to watch it at the end of the video. Here it is again: studio.ruclips.net/user/videoqRiV8IEx14U/edit
@@simplegermany you guys are the best 👌
Thanks for your detailed analysis, however, If you add it with other social contributions then the net pay is really low in Germany. That's the most frustrating part for an expat I think, specially if your pay goes up so does your social contributions along with wage tax :3
It all depends on your perspective. We will release another video on that topic in the near future. Not all social contributions go up endlessly, as there is a earning ceiling between 60-88K, so it doesn't blow out of proportion 😉
thanks, would love to see a video on this 🙂
In understanding taxes, it's also good to compare the cost of living between your home and your new home. In some cases, the taxes will be higher, but you may end up saving money on other expenses in return like healthcare, transportation, groceries, etc.
True. With a low income you pay high social fees, with a high income you pay high taxes. Above 67k you can choose private health insurance, wich in cheaper in many cases and better treatment. And regarding taxes you can invest in a tax-deductible pension plan to lower your tax burden. Have made videos on both on my channel.
@@simplegermany also, I would really love to see a video on how Germany is doing compared to it's other neighbouring countries in Europe
Thank you. Very informative. Please can you make a video on how to claim the social contributions if we leave Germany?
We have a written guide for that 😊 www.simplegermany.com/german-pension-refund/
The average tax rate and the margin tax rate will never intersect. At 611.000 € the average tax rate is 42 % because the margin tax rate increases to 45 % at around ~278.000 €. 😊
Thanks for the information. Watching from India
Another Informative video as always! I honestly learn something new every time I tune in to your channel.
Also that was more math than I expected to encounter today but also very glad that I now know it! It's good to be informed and Yvonne makes the hard stuff easy to digest and Jen reiterating it so that my 5 year old brain can process it also helps 😅
what did you learn today? Are you now gonna pay less taxes?
I actually dug into this last year as I'm a freelancer and I wanted to know ahead of time how much money to save for tax payments.
The way you presented it isn't quite right (although for most people it's probably sufficient). The tax rate for earners with over €62,810 is actually 42% for all income above the tax-free allowance of €9,972.98. Of course, this means the overall tax rate is lower than 42%. The annoying thing about the German income tax is that the formula changes depending on which taxable income band you're in. In countries like the UK, the marginal tax rate simply applies above a certain level.
The trouble about working self employed is that for quite a while (mostly), you weite your invoices and the billed amount plus Umsatzsteuer comes in.
Then, after your first Umsatzsteuer- and income tax declarations are due and processed, you're asked to pay income tax for the past year AND make a deposit for income tax for the current year.
This really hits those who treat all the cash like theirs to spend...
Even if the freelance income is much higher than the last salary, any new freelancer should should restrain his expenses and put most money aside for that very special tax moment...
Yes, this is more accurate. I also hate the high taxes. On the other hand that means, everything you are able to deduct you get 42% back from the government. I personally and many of my clients invest in a tax-deductible pension plan to lower my taxable income und invest for retirement at the same time. Also I’m in the private health insurance, where I get faster and better treatment and on top the contributions are way lower. Have made a video on both on my channel.
@@DavidReinhardInVertas maybe you can clear this up for me then. I thought pension contributions were 100% deductible, but on the tool that I use for my tax returns, adding e.g. €100 of pension contributions only lowers my taxable income (zu versteuernde Einkommen) by €88. Is it right that only 88% of pension contributions are tax deductible? I haven't found the proper information on the German govt website about this, so at this point I'm not sure.
heh, we ignore tax on electricity, fuel, vat, property tax, .. don't buy property in Germany there's another tax. Alcohol is also taxed differently (ya the restaurant needs to pay that). There's also amusement tax and many other taxes and other hidden costs.
Let's say 240$ TV charge in Germany / year if you want it or not.
Those "taxes" are all paid by entrepreneurs from their own wallet of course for you the brave citizens of Germany :D (don't ask where the entrepreneurs have that money from it's just all of them are rich in Germany and love to pay from their own money for you).
Thank you for this! Could you make a video on being self-employed in germany and having kleingewerbe? 🤠
We have some content regarding starting a buisness in Germany under Self Employed on our website (www.simplegermany.com/working-in-germany). Are there any particular questions you have regarding the topic that we have not covered?
The thing is you pay high taxes quite early. I myself pay 25% and ON TOP there is Social security, Solidaritätszuschlag, Kirchensteuer etc. I pay over 1 third actually. For low income the healthcare part is even bigger than the income tax. That means you basically always loose a minimum of 1 third of your income, now matter how little your income is. Thats really unfair, meaning there is no actual meaningful progressive tax. It should go up much slower, it hasn't kept up with inflation increases.
Hallo, one question!! Are phd students in germany considered to be students or workers?
And is it possible for non-EU phd student to apply for bluecard or permanent residency during the studies?
that's true but if you look in total including "Renteversicherung" and all the other small taxes and social deductions, people making 55-60k a year pay around 40% to the government.. the main problem is not the income tax, it's all of the stuff combined
I'M GLAD YOU EXPLAINED THIS BECAUSE, I WAS ABOUT TO CHG MY MIND IN COMING.😂😂THEN, I SAW THIS VIDEO❤😮🎉🎉I'M BACK HAPPY NOW.😂
Well, i lived in Germany for two years and i can say that i was pay more or less 40% of my income in taxes, health benefits etc...
It´s true that i had a high salary, but i still have my payrolls in pdf and overall it´s near to 43%.
I subscribed. After watching almost all your videos. You deserve it.
I dont usually subscribe
Thanks a lot! 😊
Most of the people are just interested in gross income and net income and what ever is the difference is your tax deduction percentage plus social contributions. Who cares about taxable income ? Health insurance is expense And yah pensions which youth is now paying is in dire state and not guaranteed because we never know when pension system bubble will burst out. More people retiring and less people joining the workforce resulting in difference of 400k annually. How long poor govt pay the difference out of pocket ? It is not sustainable
Totally agree. You can call it whatever. After all net/gross income ratio matters,which is 38% for 75k gross.
@@usernameusernam these RUclipsrs are pro Germany , biased and always tell good things. There are lot of good and bad things. So they need to tell facts only
So if I have business in Germany and make 1 mil euros in a year I need to pay almost half of it to the government??
Thats just stupid....that means I work 7 months for me and 5 months for the government.....
Business tax works differently again and is roughly 30% on profits, at least for corporations. For sole proprietors the same taxes apply as for employees.
@@simplegermany ahhh thank you 😁
@@krstanoski994 Keep in mind that's only the corporate level. The distribution of profits into your private account is again taxed at ~27%.
So, a 100k profit is taxed at ~32% on corporate level and the remaining 68k distribution again with ~27%. Which leaves you with 49k and something for your 100k profit.
You make a million Euros and guess how much you'll be paying for health insurance every month on top of the taxes.
Pension deducted will also be taxable, right?
Thank you for such a informative videos. Can you please create video on Pension for expats? especially for non EU residents?
We just published a guide on pensions last week: www.simplegermany.com/pension-in-germany/ We announced it in our weekly newsletter. If you'd like to receive such updates in the future, you can sign up to our newsletter here: www.simplegermany.com/newsletter/
Hey Jen, you have been living in Germany for 11 years. Have you got German passport? (I hope this is not a personal question). If yes, could you guys share the experience in video possibly how was the experience and process?
Yes and we already did a video about it 😊 ruclips.net/video/28ZHHTtCIV0/видео.html
Guys interest rates are currently very high, so could you please suggest us about Fixed deposit where rates are going upto 4% or more. Seems good time to get some fixed returns with little to no risks. So your inputs always been helpful, so your insights would be appreciated. I am pretty sure lots of expats might be wondering on this topic or you might be already making something on this 😊
We have a written guide on that 😊 www.simplegermany.com/savings-account-germany/
In Australia, you pay no tax on the first $18,200 of your income.
It is about the same amount over here in Germany. Die AUD converts by a rate of just 0,59.
18,200.00 AUD = 10,847.49 EUR
Steuerfreibetrag DE 10,908.00€
You pay more at the moment 😉.
Could you please tell me how much Age limit to take Germany work permit visa for foreign drivers? Please.
thanks for well researched video and great content. I think all other social deductions should be added to the calculations as the employee will never see them. For example, for a 100k salary, a person (taxed according to class 1) will get only 58% of this salary. This means, every single EURO you earn above the 62.8k, you get only 50% of it. This is actually making high earners leaving the country.
Thanks for your suggestion! A video about that is coming soon ☺️
actually, someone making 100k costs the company already roughly 120k because of taxes and social contributions the employer has to pay. if you also calculate the mwst (vat) and all the million other taxes in germany such as Soli, EEG and so on and so on, as an average guy you pay 39.5% (excluding the business site afaik). if you make more than the average, it gets quickly higher. if you are high income and you lose your job, you want to raise children or whatsoever, you are pretty much screwed with barely any help by the gov. social contributions are basically only for the low income and useless for the others even though the others are contributing heavily to the system the others are taking advantage of. the missing support by the gov and society if you fall as a high tax income person is the reason high income people leave. at least as far as i am aware from my surroundings and myself.
yes i completely agree. Germany is for average people. I try to work hard and I am not far from 100k, but I do not see a reason staying another let's say 5-10 more years. what I get for working hard? nothing - Germany basically taking so much and where are all taxes going 😂 no motivation to get even higher salary here because half of it is gone. then germany is wondering why talented people are not coming
You're exactly right! Germany is crying for people to move in yet 1.2 million Germans left last year mostly for the US and Switzerland and this is exactly why. Economic opportunity.
In 2020, the top income tax rate in Germany was 45 percent. This tax rate applied to single persons with taxable income of €270,501 or more per year, and to married persons assessed jointly with taxable income of €541,002 or more per year. It is important to note that this is the federal tax, and there may be additional church taxes and other levies on the income if applicable.
It should be noted that taxable income in Germany is calculated after deducting certain lump sums and deductible expenses. These include, among others, income-related expenses, special expenses and extraordinary burdens. However, contributions to statutory health insurance and long-term care insurance made by employees are NOT deducted from taxable income. Although these contributions reduce the employee's gross income, they are generally not taken into account to reduce taxes!
The minimum health insurance amount would then be about 56,250 euros (contribution assessment ceiling) * 14.6 percent = 8,197.50 euros per year.
With a gross annual income of 270,501 euros and assuming a single household in Germany, the deductions could roughly be as follows:
1. income tax: the top tax rate is 45 percent for the portion of income above 270,500 euros. Let us assume that the entire income is taxed at this rate.
270,501 Euro * 0.45 = 121,725.45 Euro income tax
2. health insurance: health insurance contributions may vary depending on the health insurance company and individual situation. Let's assume that it is an average rate of 15 percent of gross income.
270.501 Euro * 0,15 = 40.575,15 Euro Health insurance
3. pension insurance: contributions to pension insurance are usually about 18.6 percent of gross income.
270.501 Euro * 0,186 = 50.398,686 Euro pension insurance
4. solidarity surcharge: in Germany, this currently amounts to 5.5 percent of income tax.
121,725.45 Euro * 0.055 = 6,694.00 Euro solidarity surcharge
5. church tax: depending on the federal state, this amounts to between 8 percent and 9 percent.
270,501 Euro * 0.09 = 24,345.09 Euro church tax
The sum of all basic taxes is 243,738.55 Euro. This leaves 26,762.45 euros per year or 2,230.20 euros per month.
The monthly net is therefore 2.230,20 Euro.
By contrast, in Romania you actually pay almost 45% taxes ( ok, to be fair, also social contributions) and in return, we barely have highways and if you end up in a hospital, there's a good chance you'll die of infections or that nobody will take care of you unless you bribe them and the elderly have a measly retirement pay. Unless you are a politician, then of course you get special retirement, for all the good work you did. Oh, Germany, just one more year until I get to move there. You guys do amazing work, keep at it! It has helped me and my partner a lot!
Thanks for sharing! All the best for your plans to move 😊
it is same in turkey too. corrupted governments :(
This is a very good point: what do you get for your (tax/contributions) money??? But the thing is… I mean, sure compared to the described Romanian conditions Germany is still much better. But when you compare it to Nordic/Scandinavian countries again, then Germany doesn't look so good anymore.
I would take a closer look especially at education, health and also the general infrastructure, in many areas it's really a bad joke what Germany does with all the tax money.
if we do part time job only with 12.40 euro per hour our monthly income is around only 1,091 euro per month
is this income tax free?
Any income up until the basic allowance is tax free.
Can student take care of living cost with minimum wage part time jobs in non popular cites in germany?
Can you make a video about adoption for expats. There are very few information in english about this topic.
Specially adoption from the origin country.
I think there is a typo in the table, 100k income shows 32,03%, but 150k - 31,35%, which does not make much sense
In Denmark taxes are also progressive. I make around 65.000 Euro a year, and pay 48%.
@Jen and Yvonne: You guys are doing great job. Your explanation is crisp and clear. 😊 Which tax class does an individual fall into, if he is married and have kid. But, his wife and kid stays still stays in home town ( India). Will it be tax class 3 or class 1?
Thanks so much for your great feedback! 😊 From our experience, it will probably be tax class 1, as family members only 'count' when they also reside in Germany. We talk more about in our guide and also explain how to change tax class once your family is here: www.simplegermany.com/tax-class-germany/ - a good topic for another video as well 😊
@@simplegermany : Perfect. I understand your point. Thank you very much 😊
@@simplegermany : Also, am very excited to move to Germany ( Stuttgart ) from India for my employment in Automotive domain in last week of this month. Each and every videos of yours has helped me from taking interview to making rental agreement with German land owner for apartment 😊. I would like to share my experience with you guys on a platform and also it might be helpful to others. So, could you please let me if I can share my experience? If yes , I would like to know where and how😀
That's awesome! We hope your move will go smoothly 😊 We would love to hear more about your story if you don't mind sharing. We are particularly interested in:
- What brings you to Germany?
- How did you discover Simple Germany?
- Which videos or guides have been the most helpful to you?
You can send us a message via our contact form: www.simplegermany.com/contact/
@@simplegermany : Awesome. I just shared my experience for your queries. Once again thanks a lot☺️
OMG random question, I am American-Spanish. Live in the US and have a US employer, but want to move to Germany just to experience Germany! Where do I pay taxes?! I think I pay them in Germany and get a tax deduction in the US but not sure
Is foreign earned retirement & disability taxed? For example, I receive a U.S. military pension and disability compensation from the Dept of Veterans Affairs. In another decade, I’ll be eligible to receive US Social Security Retirement. Would any of these be taxed in Germany if I became a resident?
That is in fact the case… when you are getting your 401k or military pension distributions, they will be taxed like this; your own contributions are tax free, but capital gains will be taxed.
really! are you sure about 600,000+ ? (ab einem Einkommen von 62.810.... should be correct)
Der Spitzensteuersatz in Deutschland beträgt 42 % und gilt 2023 ab einem Einkommen von 62.810 € bis 277.826 €. Wer mehr als 277.826 € verdient, wird in Deutschland mit dem Höchststeuersatz von 45 % besteuert (auch Reichensteuer genannt). In etwa 4 Millionen Deutsche zahlen derzeit den Spitzensteuersatz.
If you would be so kind to watch the video, then you understand the difference between marginal tax rate and actual average tax rate and the point of this video 😊
@@simplegermany yeah, you're absolutely right 🙂
can you do a video, when it makes sense to be in tax class 3 and 5 as couple? please :D
I also heard today, that if I'm a freelancer, I don't need to open a gewerbe and pay any taxes, if my income is less then 22000€ annually - is that true?
If you qualify as a freelancer you do no pay any 'Gewerbesteuer' regardless of how much you earn, but you will always pay income tax, as described in the video.
Well, I think that is a hoax. Where did you hear that?
@@thorstenschmidt21 from my Arbeitbetreuer on the courses how to write CV for german market
Hi,
I just want to know few details regarding a query could anybody help me
I'm working as a IT professional in India with 12L annually and also i got a job in germany as a full-time employee with 50 k euro yearly and I'm single person no family or children basically unmarried i got job on September 2023 still continuing in german company and also working in India as well i would like to know is there any way to skip taxation in order to avoid huge amount on tax. Please do advise me. Still I didn't resigned from my current working company in India.
I'm regretting after coming here, I left a good job offer in India to come here to earn and save money now, litreally I'm not able to save a single penny it's literally depressing.
No, you are taxed even more than 42%: for a 65k€ salary (including the regular medical insurance) you will taxed around 47%.
You talk about Lohn- und Einkommensteuerrechner. The fact is that you have to play more or less 1/3 of you income for other staff. Yes is it called Solidarität Steuer, but is is a tax nevertheless.
For someone that has in Gross monthly income of 3000euros , will receive 1850-2000 euro (depends how much you play for your health insurance .
Ingolstadt Bayern.
Grust euch.
It's not the just income tax people talk when they say taxes are high!
1. Salaries are moderate when you look at the expenses. If you Say 60,000-80,000 Euro per year, that's still not high as per Indian IT professionals that typically Germany targets to reach.
Factors: health insurance, employment insurance, high rents that make savings come to 30%. Which is too low , when I add expenses visiting India....that savings go further down.
So, it's the savings matter to expats from India. We simply say taxes are high which means all expenses are very high that indirectly due to lots of indirect taxes.
Exactly… all it matters is what you remain with after all salary deductions and other taxes that you cannot avoid. Luckly I earn over 100k but even that doesn’t make me rich. I can save around 40% but still…
It is still quite high and discouraging for the above-average line salary.
how many those over 600k does pay tax, lol? or batter to say, does have residentially based company?
A salary of 35000 euros in Sweden you will end up paying around 24-25% of total income tax and that is a normal working salary. Unemployment insurance not included which varies from 30 to 60/70 euros a month depending on union. The pay you get when unemployed is more or less a joke.
Thanks for the explanation. However, you forgot to explain how this calculation is made on your monthly income (1/12th of your example 75,000)?
For example, I have a varying income each month (shift-work). To understand how I was taxed last month, do I simply multiply all the number in my payslip by 12 times?
If you payslip changes every month, you would need to add them all up at the end of the year to get to your yearly tax rate. But to get a feeling right now, you can calculate the tax rate from your last 3 payslips to get an idea of where you stand.
@@simplegermany how is the monthly income taxed?
Even as a German girl, tax stuff is quite difficult/ confusion 😅. And by the way you guys are soooo cute 🥰