Germany has no tax brackets. A statutory formula raises the marginal rate continuously from 14% to 42%, then flattens.
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Germany is unusual in having no tax brackets at all. §32a of the Einkommensteuergesetz defines a continuous tariff in five zones, and two of those zones are quadratic — so the marginal rate climbs smoothly from 14% to 42% rather than jumping in steps.
The first €12,348 of taxable income is free of tax. Above that the rate rises continuously until income reaches €69,879, where it settles at a flat 42%. A further 45% "Reichensteuer" applies above €277,826.
The Solidaritätszuschlag survives as a 5.5% surcharge on the income tax itself, but since 2021 it only bites once assessed income tax exceeds €20,350 — around €76,232 of gross salary for a single employee. It does not arrive at the full rate either: a Milderungszone phases it in, so the first payers owe a few euros rather than 5.5% of their tax bill. This calculator covers income tax and the surcharge; church tax (8–9%, payable only by registered members) and social insurance are separate.
| Taxable income | Rate | Notes |
|---|---|---|
| €0 – €12,348 | 0% | Grundfreibetrag |
| €12,348 – €17,799 | 14% | rises 14% → ~24% |
| €17,799 – €69,878 | 24% | rises ~24% → 42% |
| €69,878 – €277,825 | 42% | flat |
| €277,825 and above | 45% | Reichensteuer |
The percentages in zones 2 and 3 are marginal rates at the start of each zone, not fixed rates — the tariff is a formula, so the rate changes with every euro rather than at fixed steps.
The Arbeitnehmer-Pauschbetrag of €1,230 and the Sonderausgaben-Pauschbetrag of €36 come off gross income without any need to itemise. What remains is the zu versteuerndes Einkommen (zvE).
This is the step most calculators get wrong. The €12,348 tax-free amount is built into the tariff itself — zone 1 taxes income up to that level at zero, and zones 2 and 3 subtract it inside their formulas. Deducting it from income as well double-counts it and materially under-states the tax due.
Zones 2 and 3 are quadratic: the tax is (a × y + b) × y + c, where y is the income above the zone floor divided by 10,000. That is why the marginal rate rises continuously. Zones 4 and 5 are simple linear formulas at 42% and 45%.
Nothing is due while assessed income tax is at or below €20,350 (€40,700 for a couple assessed jointly). Above it, a Milderungszone caps the surcharge at 11.9% of the excess until the ordinary 5.5% becomes the lower figure, so the surcharge phases in rather than appearing all at once.
Income tax and solidarity surcharge only. Social insurance contributions (pension, health, care, unemployment) are separate and are not shown here.
| Component | Monthly | Annual |
|---|---|---|
| Gross salary | €5,000.00 | €60,000.00 |
| Arbeitnehmer-Pauschbetrag | (€102.50) | (€1,230.00) |
| Sonderausgaben-Pauschbetrag | (€3.00) | (€36.00) |
| Taxable income (zvE) | €4,894.50 | €58,734.00 |
| Income tax (Einkommensteuer) | (€1,145.63) | (€13,747.58) |
| Solidaritätszuschlag | (€0.00) | (€0.00) |
| Net of income tax | €3,854.37 | €46,252.42 |
| Effective rate | 22.91% | |
| Marginal rate at this income | 38.14% | |
So if your gross salary is €60,000 a year in Germany, income tax takes €13,747.58, leaving €46,252.42 — €3,854.37 a month before social insurance. No solidarity surcharge is due, because assessed income tax of €13,747.58 is below the €20,350 Freigrenze. The effective rate is 22.91% while the marginal rate has already reached 38.14% — the gap between those two numbers is what the progressive tariff does.
Computed from the §32a coefficients the calculator uses, in the same order, so this table and the calculator cannot disagree.
2026
Up from €12,096 in 2025. All five zone boundaries and every coefficient in the §32a formula moved with it — the 42% zone now begins at €69,879 rather than €68,481. The adjustment offsets bracket creep, so identical pay attracts slightly less tax than in 2025.
2026
Up from €19,950 in 2025 for a single assessment, and €40,700 for joint assessment. Because the threshold applies to assessed income tax rather than to income, an employee needs roughly €83,000 of gross salary before any surcharge is due at all.
2021
The surcharge was not repealed but had a large Freigrenze introduced, removing it for most employees while leaving it in place for high earners and on corporate and investment income.
There is no single rate. The marginal rate rises continuously from 14% just above the €12,348 tax-free amount to 42% at €69,879, then stays flat until 45% applies above €277,826. At €60,000 gross the effective rate is 22.91% while the marginal rate is 38.14%.
To avoid the sharp jumps that bracket systems create at threshold boundaries. Because zones 2 and 3 are quadratic, the marginal rate changes with every euro earned, which makes the progression smooth. The trade-off is that you cannot work out your tax from a simple table.
Probably not — around 90% of former payers no longer do. Since 2021 it applies only where assessed income tax exceeds €20,350 (€40,700 for a couple assessed jointly), which takes about €76,232 of gross salary for a single employee with no other deductions. Just above that line you pay very little rather than the full 5.5%: the Milderungszone charges 11.9% of the amount by which your income tax exceeds the Freigrenze, so the surcharge starts near zero and climbs. At €80,000 gross it works out at about €188 — roughly 0.86% of the income tax due, not 5.5% of it.
It is the €12,348 of income that is free of income tax. It is not deducted from your salary as a separate line — it is built into the tax tariff itself, as the zone that taxes income at 0%. Subtracting it from income and then applying the formula would count it twice.
No. Kirchensteuer is 8–9% of your income tax (8% in Bavaria and Baden-Württemberg, 9% elsewhere) and is only payable if you are a registered member of a collecting religious community. Leaving the church formally ends the liability.
No — this calculator covers income tax and the solidarity surcharge. Pension, health, long-term care and unemployment insurance are charged separately and together take roughly a further 20% of gross from the employee, with the employer paying a broadly matching share.
Tax classes I to VI determine how much is withheld from each payslip, not how much you ultimately owe. They matter for cash flow across a year and for married couples choosing between class combinations, but the final liability is settled on the annual return.
Married couples can be assessed jointly: their combined income is halved, the tariff is applied to that half, and the result is doubled. Because the tariff is progressive, this reduces the total bill — and the more unequal the two incomes, the larger the saving.
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