You don’t have to pay anything for the income lower than €9 984 a year. 14-42% is a progressive rate: 14% is levied for €9 985. Then it goes gradually up with the growth of your salary and reaches the maximum of 42% for €58 596 per year. The sum between €58 597 and €277 825 has fixed 42%. If you earn more, you pay 45%.
All working people are divided into tax classes. It’s a special Fiscal Service tool to determine the rate for each individual payer. The division is based on the marital status, number of kids and the income size. For example, unmarried people or spouses who live separately get the first class. Apart from this one, there are 5 more (single parents, spouses with different incomes, etc.). Click here
for more information.
The goal of such a system is not to confuse everyone but to ease the tax burden: the state establishes tax-free sums for different categories and provides benefits for married couples and single parents.
Apart from the income tax, you’ll have to deduct social security contributions
from your salary:
- 7,3% for health insurance
- 9,3% for pension insurance
- 1,2% for unemployment insurance
- 1,5% for nursing care insurance
Employers make the same contributions (and in the same amount).
We have a current vacancy for a Senior Java Developer
in Berlin with the salary up to €5400 gross. If we use a special calculator
, we’ll see that the specialist will get €3200 net (taken that the person is not married and doesn’t have kids):