What is deducted (2026, employee share)
| Deduction | Rate | Notes |
|---|---|---|
| Income tax (Lohnsteuer) | Progressive, 0–45% | Tax-free allowance €12,348/year |
| Solidarity surcharge (Soli) | 5.5% of income tax | Only for high earners (above roughly €73,000 taxable income for singles) |
| Church tax (Kirchensteuer) | 8% (Bavaria, Baden-Württemberg) or 9% of income tax | Only for registered church members |
| Health insurance (KV) | 7.3% + half the insurer's add-on (avg. add-on 2.9% → ~8.75%) | Up to the ceiling of €5,812.50/month |
| Long-term care (PV) | 1.8%, +0.6% if childless and 23+ | Lower with 2+ children under 25 |
| Pension (RV) | 9.3% | Up to €8,450/month |
| Unemployment (AV) | 1.3% | Up to €8,450/month |
Roughly 20–21% goes to social insurance and the rest to tax. Example: €4,000 gross/month, tax class I, childless, no church → about €2,550 net. Use the BMF's official calculator (bmf-steuerrechner.de) for your own numbers.
Tax classes (Steuerklassen)
| Class | Who |
|---|---|
| I | Single, separated, divorced |
| II | Single parent (with relief for single parents) |
| III / V | Married couples: III for the higher earner, V for the lower |
| IV / IV | Married couples with similar income (default after marriage). IV with factor distributes tax more precisely |
| VI | Second job, or no Steuer-ID provided yet |
Married couples in III/V must file a tax return.
Reading the payslip (Lohn-/Gehaltsabrechnung)
Check each month: Steuerklasse, Kinderfreibeträge, Konfession (should say "--" or "VD" if you aren't a church member), Krankenkasse name, and the Brutto/Netto total. "Geldwerter Vorteil" is a taxable benefit, such as a company car or Jobticket above tax-free limits. "VWL" means employer savings contributions.
Minimum wage and Minijobs
- Minimum wage: €13.90/hour in 2026 (rising to €14.60 in 2027).
- Minijob: up to €603/month with no tax or social insurance for the employee (pension contributions can be opted out of).