Income Tax Percentage in Germany

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  • The German income tax rate is high

German Income Tax Percentage

The German tax system has a progressive tax rate in which the tax rate increases with increased income. Employees pay income tax through payroll deductions by their employer. Others have to do this themselves or via their accountant or tax advisor.

The top tax rate in Germany is 45%.

German Income Tax Rates 2024

Income tax brackets (tax percentage) for 2024:

Income €Tax Rate %
Less than 11 604 €Not Taxable
11 605 € – 66 760 €14% to 42%
66 761 € – 277 825 €42%
More than 277 826 €45%
Valid in 2024

For those who want to know, these are the formulas for calculating income tax in 2024 (Article 32a Income Tax Tariff in Income Tax Act – Einkommensteuertarif Einkommensteuergesetz EStG):

  1. up to 11,604 €: Not Taxable (Grundfreibetrag)
  2. from 11,605 € to 17,005 €: (922.88 · y + 1,400) · y
  3. from 17,006 € to 66,760 €: (181.19 · z + 2,397) · z + 1,025.38
  4. from 66,761 € to 277,825 €: 0.42 · x – 10,602.13
  5. from 277,826 €: 0.45 · x – 18,936.88

Explanation of income tax calculation formulas:

The value “y” is one ten-thousandth of the part of the taxable income rounded down to a full euro amount that exceeds the basic tax-free amount.

The value “z” is one ten-thousandth of the part of the taxable income rounded down to a full euro amount that exceeds 17.005 €.

The value “x” is the taxable income rounded down to a full euro amount.

The resulting tax amount must be rounded down to the next full euro amount.

German Income Tax Rates 2023

Income €Tax Rate %
Less than 10 908 €Not Taxable
10 909 € – 62 809 €14% to 42%
62 810 € – 277 825 €42%
More than 277 826 €45%
Valid in 2023

For those who want to know, these are the formulas for calculating income tax in 2023:

  1. up to 10,908 €: Not Taxable (Grundfreibetrag)
  2. from 10,909 € to 15,999 €: (979.18 · y + 1,400) · y
  3. from 16,000 € to 62,809 €: (192.59 · z + 2,397) · z + 966.53
  4. from 62,810 € to 277,825 €: 0.42 · x – 9,972.98
  5. from 277,826 €: 0.45 · x – 18,307.73

Explanation of income tax calculation formulas:

The value “y” is one ten-thousandth of the part of the taxable income rounded down to a full euro amount that exceeds the basic tax-free amount.

The value “z” is one ten-thousandth of the part of the taxable income rounded down to a full euro amount that exceeds 15,999 €.

The value “x” is the taxable income rounded down to a full euro amount.

The resulting tax amount must be rounded down to the next full euro amount.

German Income Tax Rates 2022

Income €Tax Rate %
Less than 9 984 €Not Taxable
9 985 € –  58 596 €14% to 42%
58 597 € – 277 825 €42%
More than 277 826 €45%
Valid in 2022

German Income Tax Rates 2021

Income €Tax Rate %
Less than 9 744 €Not Taxable
9 744 € –  57 918 €14% to 42%
57 919 € –  274 612 €42%
More than 274 613 €45%
Valid in 2021

German Income Tax Rates 2020

Income €Tax Rate %
Less than 9 408 €Not Taxable
9 408 € – 57 051 €14% to 42%
57 051 € – 270 500 €42%
More than 270 501 €45%
Valid in 2020

German Income Tax Rates 2019

Income €Tax Rate %
Less than 9 169 €Not Taxable
9 169 € – 55 960 €14% to 42%
55 961 € – 265 236 €42%
More than 265 327 €45%
Valid in 2019

Must Read Info

More about German taxes in the article Tax Classes 1 to 6 Explained.

Everyone in Germany must read about the Tax Return Deadline.


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Income Tax Percentage in Germany
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