If you are living in Germany, in Berlin, and earning a gross annual salary (Bruttogehalt) of €49,260, or €4,105 per month, the total amount of taxes and contributions that will be deducted from your salary is €17,119.
This means that your net income, or salary after tax (Nettogehalt), will be €32,141 per year, €2,678 per month, or €618 per week.
For simplicity, our net salary calculator (Brutto Netto Rechner), has a few assumptions baked in, such as that you're not married and have no dependents. It also assumes that you have no affiliation with a church. If your circ*mstances are different, you may owe less or possibly more than estimated once all tax credits and deductions are applied.
For a gross annual income of €49,260, our tax calculator projects a tax liability of €1,427 per month, approximately 35% of your paycheck.
The table below breaks down the taxes and contributions levied on these employment earnings in Berlin, Germany.
| Yearly | Monthly | Weekly | |
|---|---|---|---|
| Gross Income | €49,260 | €4,105 | €947 |
| Tax Due (35%) | €17,119 | €1,427 | €329 |
| Income Tax (Lohnsteuer) | €6,750 | €562 | €130 |
| Solidarity Surcharge (Solidaritätszuschlag) | €0 | €0 | €0 |
| Pension Insurance (Rentenversicherung) | €4,581 | €382 | €88 |
| Unemployment Insurance (Arbeitslosenversicherung) | €640 | €53 | €12 |
| Health Insurance (Krankenversicherung) | €4,015 | €335 | €77 |
| Long-Term Care Insurance (Pflegeversicherung) | €1,133 | €94 | €22 |
| Net Income (65%) | €32,141 | €2,678 | €618 |
The average salary for full-time workers in Germany is €4,105 per month, or €49,260 per year (source: Federal Statistical Office). If we include bonuses and special pay, gross annual earnings rise to €54,163. Note that the average gets distorted by high earners, which explains why it is higher than the German median salary of €43,842 (€3,653 per month).
Germany is known for its high taxes and contributions, so these figures are far from what is actually hitting your bank account. The average German salary of €4,105 per month equates to only €2,678 after taxes, if you are not married and have no dependents. Your monthly paycheck might look different, depending on where you live, so plug your income into our take-home pay calculator to find out!
Germany has the second-highest average salary in the European Union!
The national minimum wage in Germany is €12.41 per hour, which works out to a gross salary of €2,151 a month or €25,813 a year, if we consider the typical full-time work week of 40 hours. Exceptions include certain internships, mandatory traineeships, and anyone under age 18 who has not completed vocational training.
Although this is one of the highest rates in the EU, a monthly gross wage of €2,151 translates to a take-home pay of €1,569 if we run the numbers in Berlin using our net salary calculator. In other words, a full-time minimum wage earner in Germany should expect to part with almost €6,981 in taxes and contributions per year.
The minimum wage also affects marginal employment — so-called "mini-jobs" that are generally exempt from income tax and social security contributions. The monthly pay for these part-time jobs is capped at €538, which translates to an annual mini-job salary limit of €6,456 including any bonuses.
Germany has the second-highest minimum wage in the European Union!
In Germany, taxes are levied at the federal, state, and sometimes even municipal levels. These include Income Tax, Solidarity Surcharge, and several types of Social Insurance. If you are employed, then all taxes and contributions are automatically deducted from you gross salary by your employer each month, so your paycheck is generally net of tax.
If you run your own business, have multiple professions, or are self-employed, then you have to calculate your own taxes and send in an annual tax return.
Generally, if you make any income in Germany, then you must pay taxes. The tax system is overseen by the Federal Central Tax Office (Bundeszentralamt für Steuern) and a collection of regional tax offices (Finanzämter). Our salary calculator for Germany includes all the major tax expenses except the Church Tax (Kirchensteuer), which is only required if you have an affiliation with a church.
These expenses include:
- Income Tax (Lohnsteuer): Germany uses a progressive tax rate, which means your rate increases as your income grows. The 2024 rates range from 0% for incomes below €11,604 up to 45% for the highest salaries.
- Solidarity Surcharge (Solidaritätszuschlag): The Solidarity Surcharge is an additional charge, capped at 5.5% of your income, that goes toward improving infrastructure and the economic situation nationwide.
- Social Insurances: You also must make contributions to various social insurance plans, such as pension (Rentenversicherung), health insurance (Krankenversicherung), unemployment insurance (Arbeitslosenversicherung), and long-term care insurance (Pflegeversicherung).
For a deeper dive into the German tax system, check out our Income Taxes in Germany guide.
