Germany Salary Calculator 2026
Gross-to-net salary calculator for Germany. For employees and freelancers (Selbstständig).
Sourced from official government publications
Tax rules last verified
Built by SalaryCalc team
How salary tax works in Germany in 2026
This calculator models 4 tax regimes for Germany — 1 for employed staff and 3 for freelancers and company owners. All amounts are calculated in EUR and can be displayed in another currency at current exchange rates. Each regime below lists the rates, thresholds and contributions the calculator applies; select one above to see it worked through on your own figure.
Employment income
Standard Employee — Arbeitnehmer (Steuerklasse I–VI)
Standard German employment in Steuerklassen I–VI. Progressive Einkommensteuer per §32a EStG 2026 on (gross − employee SS − Werbungskostenpauschale €1 230 − Sonderausgabenpauschale €36 − Entlastungsbetrag for Klasse II). Solidaritätszuschlag 5.5% only above the Freigrenze (~€20 350 income tax). Employee SS halves: RV 9.3%, AV 1.3%, KV 8.75% (incl. avg Zusatzbeitrag), PV 1.8% with children / 2.4% if childless (23+, Kinderlosenzuschlag).
- Steuerklassen I–VI selectable
- IT progressive 14% → 45% (§32a EStG 2026)
- Klasse II: €4,260 + €240/extra child
- Klasse III: Splittingtarif (sole earner)
- Soli 5.5% above Freigrenze
- RV cap: €101 400 / KV cap: €69 750
Monthly take-home shown. Annual liability after Steuererklärung depends on Splittingtarif election and partner income — Klassen III/V results are withholding estimates, not final tax.
Freelance, self-employed and company regimes
Liberal profession (§18 EStG) — Freiberufler
Catalog professions per §18 EStG (IT consulting/programming included)
Self-employment in liberal professions (catalogue per §18 EStG: IT consulting/programming, engineering, consulting). Same §32a EStG progressive scale as employees, applied to profit (revenue − Betriebsausgaben). Krankenversicherung at "both halves" (~17.5%) on profit, capped at the KV BBG (€69 750/year). Pflegeversicherung 3.6% on the same base. Pension is voluntary for most Freiberufler — not modelled. CRITICAL: exempt from Gewerbesteuer.
- PIT only, no Gewerbesteuer
- §32a EStG progressive on profit
- KV ~17.5% on profit (cap €69 750)
- PV 3.6% (with children)
- RV voluntary (info-only)
- Soli only above Freigrenze
Catalog professions per §18 EStG (IT consulting/programming included). Not eligible for trade activities — those go to Gewerbetreibender §15 EStG.
Trade business (§15 EStG) — Gewerbetreibender
Trade activities (commercial, retail, e-commerce, agency)
Trade-business self-employment (commercial activity per §15 EStG — e-commerce, agency, retail, etc., as opposed to the §18 EStG catalogue). Same §32a EStG progressive scale on profit, plus Gewerbesteuer 3.5% × Hebesatz on profit above the €24 500 natural-person Freibetrag (§11 GewStG). §35 EStG credits ~50% of the paid Gewerbesteuer against Einkommensteuer. KV/PV identical to Freiberufler.
- PIT + Gewerbesteuer
- GewSt 3.5% × Hebesatz (avg ~14%)
- Freibetrag: €24 500 (natural persons)
- §35 EStG credit: ~50% of GewSt
- KV ~17.5% on profit (cap €69 750)
Limited company (GmbH / UG) — Kapitalgesellschaft
For revenue >€100k or capitalization strategy
Capital company (Gesellschaft mit beschränkter Haftung / Unternehmergesellschaft). Two-layer tax stack: corporate level (KSt 15% + Soli 5.5% × KSt + Gewerbesteuer ~14% at Hebesatz 400% — combined ≈ 30% on profit) plus shareholder level (Abgeltungsteuer 25% + Soli 5.5% on distributed profit ≈ 26.4% effective). At full payout the all-in effective rate is ~48%. Director salary runs through the standard employee PAYE pipeline.
- KSt 15% + Soli 5.5% × KSt
- Gewerbesteuer 3.5% × Hebesatz (no Freibetrag for GmbH)
- Combined corporate ≈ 30%
- Abgeltungsteuer 25% + Soli on dividends
- Fully distributed effective ≈ 48%
- Director salary via standard PAYE
For revenue >€100k or capitalization strategy. Minimum capital: GmbH €25 000 / UG €1 (UG must retain 25% of annual profit until €25 000 reached).
Official sources for Germany
The rates and thresholds above are taken from Bundesministerium der Finanzen and Deutsche Rentenversicherung — 2026 Einkommensteuertarif and Sozialversicherung thresholds.
Figures are estimates for the 2026 tax year and exclude personal circumstances such as joint filing, dependants, regional surcharges and one-off reliefs unless stated above. See how we calculate and the official sources behind these numbers.
Frequently asked questions
Germany uses the §32a EStG progressive formula with four zones in 2026. Income up to €12 348 (Grundfreibetrag) is tax-free. Zone 1 (€12 349–€17 799) starts at ~14% and rises. Zone 2 (€17 800–€69 878) continues the progression. Zone 3 (€69 879–€277 825) applies a flat 42%, and Zone 4 (above €277 825) applies 45%. Employees also receive a €1 230 standard deduction (Werbungskostenpauschale).
The Solidaritätszuschlag is an additional 5.5% surcharge on income tax. In 2026, it is fully exempt if your income tax is EUR 20 350 or less. Above this threshold, a graduated phase-in (Milderungszone) applies: the surcharge is 11.9% of the amount by which your income tax exceeds EUR 20 350, until this reaches the full 5.5% of income tax (at roughly EUR 37 800 income tax). Most average earners pay little or no Soli.
Employees pay four types of social insurance (2026 rates): pension (Rentenversicherung) 9.3%, health (Krankenversicherung) 8.75% (7.3% base + 1.45% average Zusatzbeitrag), long-term care (Pflegeversicherung) 1.8% with children — or 2.4% if childless and aged 23+ (Kinderlosenzuschlag) — and unemployment (Arbeitslosenversicherung) 1.3%. Pension and unemployment are capped at €101 400/year; health and care at €69 750/year.
Self-employed individuals pay both employee and employer portions of health insurance 17.5% (14.6% + 2.9% Zusatzbeitrag) and long-term care 3.6%. Pension insurance is voluntary for most Freiberufler (liberal professions like IT, consulting) but mandatory for some craft trades. Unemployment insurance does not apply to self-employed individuals. The same contribution ceilings and income tax formula apply. Freiberufler (liberal professions like IT, consulting) are exempt from trade tax (Gewerbesteuer).
For an employee earning €60 000/year, the combined effective rate (income tax + Soli + social insurance) is approximately 35–38%. Social insurance takes about 21% of gross, and income tax with Soli adds approximately 14–17%. The exact figure depends on health insurance provider (Zusatzbeitrag), parental status, and church tax membership.
Steuerklassen are six monthly-withholding categories that determine how much Lohnsteuer your employer deducts each month. Klasse I: single, no children. Klasse II: single parents (adds the €4 260 Entlastungsbetrag plus €240 per additional child). Klasse III: married, sole or higher-earning partner — receives the maximum Splittingvorteil. Klasse IV: married couples with similar incomes — each partner taxed as Klasse I individually. Klasse V: married, lower earner whose partner is in Klasse III — no Grundfreibetrag. Klasse VI: any second or additional job — highest withholding (no Grundfreibetrag, no first-bracket benefit).
Lohnsteuer (monthly withholding) per Klasse is an estimate — not the final tax. For Klassen III/V especially, your annual liability depends on the joint Splittingtarif (§32a Abs. 5 EStG) applied across both partners' actual income, which is reconciled when you file the Steuererklärung. Sole earners typically receive a refund; dual-earning III/V pairs may owe additional tax. This calculator shows monthly withholding only — use a Steuerberater for actual annual planning.
Klasse III/V favours couples where one partner earns substantially more than the other (the III holder gets the full Splittingvorteil, the V holder bears more withholding). Klasse IV/IV is symmetric and best for similar incomes. The Faktorverfahren (IV+IV with Faktor) is a third option that distributes withholding more accurately to avoid surprise tax bills — not modelled here. When in doubt, IV/IV is the conservative default; ask a Steuerberater (tax advisor) for personalised advice. The annual Splittingtarif applies to both III/V and IV/IV at Steuererklärung time — only the monthly cash flow differs.
No. Church tax is 8–9% of income tax (depending on the Bundesland) and applies only to registered members of a church. This calculator also does not include trade tax (Gewerbesteuer for Gewerbetreibende) or Minijob/Midijob special rules.
This calculator uses the official §32a EStG 2026 tax formula, the 2026 Solidaritätszuschlag thresholds, and 2026 social insurance rates and contribution ceilings (RV/AV: €101 400; KV/PV: €69 750). It assumes the average Zusatzbeitrag of 1.45%. Long-term care defaults to the childless rate (2.4%) for single/no-children tax classes and the with-children rate (1.8%) for an eligible Klasse II — a checkbox lets you override it. It does not include church tax, Elterngeld, or regional variations.