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German income tax - how high is it?

Posted in Germany forum

I got a job offer to work in Germany. But I heard that German income tax is really high, so I'd like to know how much I will be left with. Any indications? The information I find is completely contradictory. And do I have to declare my income in Germany or can I declare it in Ireland?

  • Go to Ciara  Doran's profile

    posted by  in Germany forum 

    Hey in case anyone is still looking for tax advice, I recently started a job in Berlin (from Ireland also) and I found some useful info on https://www.betriebsausgabe.de/ , I hope yous have a translator installed on your web browser though! Its a german website :)

  • posted by  in Germany forum 

    Age Presnism wrote: I am married with one child, because my spouse is still working in US, and have not moved here, I am not qualifed for "Married" tax status.

    Then to be considerate "married" for taxes issues you wife must to live physically in Germany.

  • Go to Craig Sands's profile

    posted by  in Germany forum 

    I am looking at moving to Germany and working for a German company with my wife remaining in the US. Does she need physically move to Germany so I can qualify as Married or can she remain in the US. My income in German will support her in the US.

  • Go to Jeremy Toulouse's profile

    posted by  in Germany forum 

    Here's a tax calculator it shows results for germany too

    http://www.moneytoolshed.com/taxcalculatorresulttest.php

  • Go to Inquisitive Indian's profile

    posted by  in Germany forum 

    I wanted to know how much will be the tax I'll have to pay. My family comprises of self, wife and 1 year old kid) and we'll be living in the Baden-Wurttemberg area.

    My salary (not confirmed as yet) could be in the range of 72000 to 95000 Euros. My wife would not be working and I wont be subscribing to any church.

  • posted by  in Germany forum 

    The church tax in Germany is a percentage of your income tax, eg it depends on how much you earn. Many foreigners don't know that when they fill out their religion in immigration papers they are automatically assumed to be part of the church and thus pay church tax. If you don't want to pay it you have to go to the Einwohnermeldeamt (Bürgeramt) and state explicitely that you're not a church member (or catholic in your case).

  • posted by  in Germany forum 

    Hi there,

    I am new in Germany. Yesterday I was in Office to change my Lohnsteuerkarte because I do one mistake for my religion. But you know that when you are Katholik you must pay more tax?. It's creazy. Every month they deduct from your payment about 50 euros for church.

    Very creasy.
    Stanley

  • Go to Age Presnism's profile

    posted by  in Germany forum 

    Let me give you my personal example.

    I am an American who moved to Germany and I have been working in Germany for 5 months now.

    My total annual income is 170,000 Euro, my tax rate is 45%, I calculated every paycheck I got, this is the actual deduction.

    I am married with one child, becuase my spouse is still working in US, and have not moved here, I am not qualifed for "Married" tax status, my child deduction is only around 160 - 170 Euro a month (means you only make 160Euro less per paycheck get if no child)

    My advice is: if you have a high income level and you cannot be qualified for "married" bracket, and you have none or few kids, DO NOT move to Germany. PERIOD. You will be ripped off by the government everyday, because you pay much more than the benefits you will get, and your tax is going to subsidize the rest of the country. At higher income level, all benefits go away, for example, Kindergarten fee is based on income. Economically this is a black and white situation. The other alternative is to have your employer equalize your tax when you move so you don't get ripped off by the government, they still rip off your employer but at least you are protected.

    Hope this helps somewhat

  • Qentin Briggs

    Income tax in Germany for foreigners

    posted by  Qentin Briggs in Germany forum 

    Expatriates living in Germany can be subject to German taxes, especially if they have German source income. This depends on the tax agreements between your country and Germany (i.e. if there is a double taxation agreement).

    In Germany, you pay income taxes throughout the year, usually with an employer deducting tax from each paycheck. Adjustments are then made at the end of the year for possible under or overpayments.

    In 2007/2008 an income of less than €7,664 is tax-free for a single person (€15,329 for a married couple). Incomes up to €52,152 for a single person (€104,304 for a couple) are then taxed with a rate progressively increasing from 15% to 42%. Incomes over €52,152(€104,304) are taxed at 45%. In addition to this there is the "solidarity surcharge" of 5.5% of the tax, to cover the costs of integrating the states of the former East Germany. If you're member of one of the main churches, you will also have to pay a "church" tax which depends on your income.

    In addition to income tax, you will also have to pay a part of your salary for four social programs; retirement, unemployment, health insurance and long-term nursing care. Payments for these programs are borne equally by the employer and the employee.

    If you're subject to German tax, generally most sources of income are then taxable. The Lohnsteuer (wage tax), which alone accounts for a third of the German government's revenue, is withheld at source from compensation. Income from other sources (e. g. self-employment, fees for services, rent collections, investments and the like) are covered by the Einkommensteuer (income tax).

    The Lohnsteuer differs from the Einkommensteuer only by the method of collection. The Lohnsteuer is collected at source and paid directly to the Finanzamt (tax office) by the employer while the individual must pay the Einkommensteuer himself.

    Hope this helps. For more info on the German tax system, you might also want to have a look at http://en.wikipedia.org/wiki/Taxation_in_Germany

  • posted by  in Germany forum 

    Hi Paul!
    I found this calculator in the internet. I'm not sure if it's a hundred percent exact, but at least you'll get an indication.

    http://www.parmentier.de/steuer/steuer.htm?incometax.htm

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