Tax groups in Germany
– by Germany Info,
The most important tax in Germany is income tax, which all employees must pay. Of course, there is a “tax exemption” for all citizens in Germany, which is called Steuerbefreiung, and it includes people who have an annual income of less than 8,652 euros, provided that they are single, because for married people or people who have a partner, they are verpartnert. Tax exemption for annual salaries below 17,304 euros. The amount of income tax in Germany varies from 14 to 42% of income, although it should be noted that only single people who earn more than 254,447 euros per year and married people who earn more than 508,894 euros per year will be taxed at 42%, which is the tax ceiling. It is called Spitzensteuersatz. The amount of tax paid in Germany does not depend only on the amount of our income, but also on our life status, for example, single or married; have a partner or married; A single mother with a child or… All these are effective in determining the type of our “tax group” in Germany, and these tax groups in Germany are six groups that we will know below.
The first tax group in Germany:
Unmarried provided that he is not considered as a single parent.
People who are continuously separated from their spouse or partner.
People who are officially divorced.
Married people whose spouse lives outside of Germany.
The second tax group in Germany:
A single father or mother with a child who lives alone with their child and, depending on special conditions, are included in their own tax exemptions.
The third tax group in Germany:
A married person or a partner whose spouse is not employed or who is employed but receives a very low salary is included in this tax group, and his spouse or partner who receives a lower salary is included in the fifth tax group.
The fourth tax group in Germany:
Married people who are both working and their income is close to each other. This tax group will be more suitable for them.
The fifth tax group in Germany:
The spouse or partner of a person who is in the third tax group is included in the fifth tax group.
The sixth tax group in Germany:
Those who have more than one job or source of income are included in this group.
Note: Single and married parents who have children include a certain amount of tax exemption, which is about 7,356 euros per year for one child. Single parents (tax group 2) and married people in the fourth tax group benefit from the entire tax exemption, but married people, one of whom is in the third group and one in the fifth group, only benefit from half of this exemption, i.e. 3,678 euros.
Example: A married person with one child in the third tax group, which includes the total tax exemption of 7,356 euros, has an income of 30,000 euros per year, the tax office only taxes 22,644 euros.
From the following website and by entering the necessary items, you can find out how much of your income is spent on taxes and deductions and how much of it is given to you as net income.
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