Income Tax Percentage in Germany

For those who want to know, these are the formulas for calculating income tax in 2025 (Article 32a Income Tax Tariff in Income Tax Act – Einkommensteuertarif Einkommensteuergesetz EStG):

1. up to 12,096 €: Not Taxable (Grundfreibetrag)
2. from 12,097 € to 17,443 €: (932,30 · y + 1,400) · y
3. from 17,444 € to 68,480 €: (176.64 · z + 2,397) · z + 1,015.13
4. from 68,481 € to 277,825 €: 0.42 · x – 10,911.92
5. from 277,826 €: 0.45 · x – 19,246.67

Explanation of income tax calculation formulas for 2025:

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 17.443 €.

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.

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 11,784 €: Not Taxable (Grundfreibetrag)
2. from 11,785 € to 17,005 €: (922.88 · y + 1,400) · y
3. from 17,006 € to 66,760 €: (181.19 · z + 2,397) · z + 991.21
4. from 66,761 € to 277,825 €: 0.42 · x – 10,636.31
5. from 277,826 €: 0.45 · x – 18,971.06

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.

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.