Understanding your salary in Germany (2026)
Germany's tax system combines progressive income tax with substantial social insurance contributions. Your net salary depends heavily on your Steuerklasse (tax class), which is determined by your marital and employment status. Social insurance contributions are split roughly equally between employee and employer.
Income tax — §32a EStG (2026)
German income tax uses a continuous formula (not simple brackets) defined in §32a of the Income Tax Act. The basic tax-free allowance (Grundfreibetrag) is €12,348 for 2026. Above this, rates start at 14% and rise progressively to 42% at €68,480, with a top rate of 45% (Reichensteuer) above €277,826. Married couples in Steuerklasse III get double allowances.
Social insurance (2026)
Employee contributions: health insurance 7.3% + average supplementary 0.85% = 8.15% (capped at €66,150/year), pension 9.3% (capped at €96,600/year in West), unemployment 1.3% (same cap as pension), and nursing care 1.525% without children or 1.275% with children (same cap as health). These rates are matched by employers, making the total social insurance burden approximately 40% of gross salary.
Solidaritätszuschlag
The Soli is 5.5% of income tax, but since 2021 most employees are exempt. Singles pay no Soli if annual income tax is below €18,130 (roughly €73,000 gross). A glide-in zone applies above this threshold before the full 5.5% rate applies.
Tax classes explained (Steuerklassen)
Steuerklasse I — Single
For single, divorced, or widowed employees with one job. Standard allowances apply. Most common tax class for unmarried workers.
Steuerklasse II — Single parent
For single parents who live alone with their child. Gets an additional relief amount (Entlastungsbetrag) of €4,260 for one child, plus €240 for each additional child. Must be the only adult in the household.
Steuerklasse III — Married (higher earner)
Used by the higher-earning spouse when one partner earns significantly more. Gets double the basic allowance (€24,696). The other spouse must use class V. Best when income split is roughly 60/40 or more.
Steuerklasse IV — Married (equal earners)
Default class for married couples where both partners earn similar amounts. Each gets standard single allowances. Both partners use class IV.
Steuerklasse V — Married (lower earner)
Used by the lower-earning spouse paired with class III. Has NO basic allowance, so tax starts from the first euro. This means more total withholding during the year, but the final annual tax bill is the same — the difference is settled in the annual tax return.
Steuerklasse VI — Second job
Applied to income from a second or additional job. No allowances at all — tax is withheld at the highest applicable rate from the first euro.
Frequently asked questions
How accurate is this calculator?
This calculator uses the official 2026 German income tax formula (§32a EStG) and current social insurance contribution rates. Results are estimates and may differ slightly from your actual payslip due to individual factors such as your specific health insurance provider's additional contribution rate, tax-free allowances registered with the Finanzamt, or other special circumstances. For precise calculations, consult a tax advisor (Steuerberater).
What is the Grundfreibetrag for 2026?
The basic tax-free allowance (Grundfreibetrag) is €12,348 for 2026. This means annual income up to this amount is completely tax-free. For married couples filing jointly (Steuerklasse III), the combined allowance is €24,696.
Should I choose tax class III/V or IV/IV?
If one spouse earns significantly more (roughly 60%+ of household income), the III/V combination reduces monthly withholding for the household. However, the total annual tax is the same regardless of class combination — the difference is just in the monthly withholding. IV/IV is simpler and avoids potential back-payments after filing your annual return.
2026 rates · 6 Steuerklassen · §32a EStG