🇩🇪 How tax works
in Germany.
2026 · National income tax guide
The calculation, explained.
Germany uses statutory formula zones, not constant rates in its two lower taxable zones. The model implements the 2026 Section 32a formula, rounding taxable income and final tax down to whole euros.
Solidarity surcharge, church tax, employee expenses and deductible social contributions are excluded. Formula-zone rates rise continuously; the worked example shows the statutory formula total.
For doctors
This model is for ordinary individual employment income. Private-practice receipts, professional expenses and medical pension arrangements need a separate assessment. A hospital's withholding is not necessarily your final annual tax.
Tax brackets · EUR
Each rate applies only to the income inside that band.
| Taxable income slice | Rate |
|---|---|
| 0 – 12,348 | 0% |
| 12,348 – 17,799 | 14%–23.97% (formula) |
| 17,799 – 69,878 | 23.97%–42% (formula) |
| 69,878 – 277,825 | 42% |
| Above 277,825 | 45% |
Your worked example
Based on your €100,000 annual gross salary estimate, equivalent to €100,000.
- 1. Annual input
- €100,000
- 2. Custom deductible expenses
- − €0
- 3. Modeled allowance / base deduction
- − €0
- 4. Modeled taxable base
- €100,000
Statutory formula tax before credits: €30,864. The continuously rising formula zones are not calculated as flat-rate bands.
- 5. Modeled tax credits (capped at tax due)
- − €0
- 6. Included additional tax
- €0
- 7. Income tax
- €30,864
- Effective rate = tax ÷ annual input
- 30.9%
- After income tax, before other deductions
- €69,136
Sources & assumptions
Sources checked 12 October 2026. The schedule's tax year is shown above; checking a source does not make a simplified model a complete payroll calculation.
Assumptions: single, no dependent children, age 30+, full-year resident, ordinary employment income only. No capital gains, dividends, special expatriate relief or double-tax treaty adjustments.