The
income tax is dependent on your income. The higher the income, the higher taxes are payable. Each employee and self-employed is obliged to make an annual income tax.
For all citizens in Germany a basic allowance applies. For Unmarried the basic allowance amounts to 8.354 €. For married amounts to 16.708 € since 2014. As far as the taxable income is from the corresponding amounts, income tax is paid on it. The rates are 14-45%.
This applies: The higher your taxable income, the higher the tax rate. The top rate of 45% you have to pay only for a taxable income over 250.730 € a year and if you are not married. For married the maximum rate applies from an income of about 501.460 €.
You have to give your
tax card (Lohnsteuerkarte), which was sent to you after you are registered in
Germany, to your employer. At the end of the year, you will get the tax card back (from your employer). Your employer gives you also all necessary informations for your
income tax return (Steuererklärung). Together with the tax return, the tax card must be returned to the
tax office (Finanzamt). The registration deadline is the end of May of the year after to be considered tax year.
Example: You have to do the tax return for the year 2015. Than income tax must be received until 31.05.2016 at the tax office (Finanzamt).
But it is also possible to obtain an extension.
The appropriate forms for your tax return will be given to you at your local tax office. You have also the opportunity to complete the tax return online - named Elster Service.
For more informations about
Elster Service, please
click here.
For more informations about
tax office, please
click here.
In addition, the employer shall pay the
solidarity surcharge and
church tax (only if you are a member of a church tax collected religious community.).
In addition, the pension, health, and unemployment insurance is deducted and paid to the relevant government authorities (tax office, health insurance, etc.). How much your net salary is, you can see every month of your payroll.