How it's calculated
German income tax (Einkommensteuer) is charged on your taxable income (zu versteuerndes Einkommen) for the calendar year. That is the income left after work expenses, deductible insurance contributions and other allowances. The calculator applies the 2026 tariff of § 32a of the Income Tax Act (EStG) and adds the two surcharges levied on top of it.Gesetze im Internet
- The tariff. Income up to the basic allowance (Grundfreibetrag) of €12,348 is tax-free. Two progressive zones follow, up to €17,799 and €69,878. Then comes a flat 42% up to €277,825, and 45% above that.
- Joint assessment (splitting). A married couple assessed jointly pays twice the tax on half their combined taxable income (§ 32a (5) EStG).
- Children. Child benefit (Kindergeld) of €259 a month per child is compared with the child allowances: €3,414 plus €1,464 per child and parent, doubled for a couple. If the allowances save more, the tax office deducts them and adds the child benefit back to the tax (§ 31 EStG).Gesetze im Internet
- Solidarity surcharge and church tax. Both are worked out on the income tax after child allowances. The surcharge is 5.5%, but only above €20,350 of tax (€40,700 for a couple), and never more than 11.9% of the excess. Church tax is 8% or 9% depending on the state.Gesetze im Internet
The formula
With x = taxable income rounded down to whole euros:
- up to €12,348: tax = 0;
- up to €17,799: tax = (914.51 × y + 1,400) × y, with y = (x − 12,348) ÷ 10,000;
- up to €69,878: tax = (173.1 × z + 2,397) × z + 1,034.87, with z = (x − 17,799) ÷ 10,000;
- up to €277,825: tax = 0.42 × x − 11,135.63;
- above: tax = 0.45 × x − 19,470.38.
The tax is rounded down to whole euros. Splitting: tax = 2 × tariff(x ÷ 2). The solidarity surcharge is min(5.5% × base, 11.9% × (base − threshold)). The effective rate is total tax ÷ taxable income. The marginal rate is the extra total tax on the next €100, per euro.
Worked example
A single person with €50,000 of taxable income, no children, no church tax:
| Line | Year |
|---|---|
| Taxable income | €50,000.00 |
| Income tax (basic tariff) | €10,548.00 |
| Total tax | €10,548.00 |
| Left after tax | €39,452.00 |
The income tax is €10,548. A married couple with the same €50,000 of joint taxable income pays €5,700 under splitting. On €120,000 a single person pays €41,423.52 including the solidarity surcharge, with a marginal rate of 44.3%.
Assumptions and limitations
- You enter taxable income. Getting from gross income to taxable income needs your own deductions, which differ widely: work expenses, pension and health insurance contributions, donations, childcare and more. For employees, the net salary calculator shows the monthly wage tax instead.
- Children. Single parents are assumed to get half of the child allowances and half of the child benefit, the usual split when the other parent claims the other half. A couple assessed jointly gets the full amounts.
- Not included: capital income taxed at the flat withholding tax (Abgeltungsteuer), the progression clause for tax-free benefits such as parental allowance or foreign income, extraordinary income (§ 34 EStG), tax credits for household services and craftsmen, church tax caps and minimum church tax.
- Prepayments. Wage tax withheld by your employer during the year is credited against this income tax when you file.