Net Salary in Germany
|Salary Before Tax|
|Total Tax Due|
|Salary After Tax||Enter salary|
- Salary Before Tax
- your total earnings before any taxes have been deducted. Also known as Gross Income.
- Salary After Tax
- the money you take home after all taxes and contributions have been deducted. Also known as Net Income.
- Total Tax Due
- the sum of all taxes and contributions that will be deducted from your gross salary.
|Your Take-Home Pay:|
|Your Gross Salary:|
|Average Gross Salary:||€ 4,251 / mo|
|Minimum Wage:||€ 12.00 / h|
|Avg. Working Hours:||41 / week|
|Avg. Paid Leave:||25–30 / year|
How to Use the Salary Calculator for Germany
Our German salary calculator, or "Gehaltsrechner", automatically estimates your take-home salary after all taxes and contributions have been paid. To use it, simply select which state you live in, enter your salary, and then calculate.
For simplicity, our net salary calculator, or "Brutto-Netto-Rechner", has a few assumptions baked in, such as that you're not married and have no dependents. It also assumes that you have no affiliation with a church. If your circumstances are different, you may owe less or possibly more than estimated once all tax credits and deductions are applied.
How Is Net Salary Calculated and Paid in Germany?
If your gross salary is your total, untouched income across all sources, then your net salary is what's left after taxes and social insurance deductions have been taken out. In Germany, taxes are levied at the federal, state, and sometimes even municipal levels. You can expect to pay Income Tax, Solidarity Charge, and Social Insurances, all of which we'll break down in the next section.
If you're employed in Germany, then your employers will automatically deduct these expenses from your gross salary. However, if you run your own business, have multiple professions, or are self-employed, then you have to calculate your own taxes and send in an annual tax return.
Taxes Included in This Salary Calculator
If you generate any revenue in Germany, then you must pay taxes. The tax system is overseen by the Federal Central Tax Office (Bundeszentralamt für Steuern) and a collection of regional tax offices (Finanzämter). Our salary calculator for Germany includes all of the major tax expenses except the Church Tax, which is only required if you have an affiliation with a church.
These expenses include:
- Income Tax (Lohnsteuer): Germany uses a progressive tax rate, which means your rate increases as your income grows. The 2022 rates range from 0% for incomes below €10,347 up to 45% for the highest salaries.
- Solidarity Surcharge (Solidaritätszuschlag): The Solidarity Surcharge is an additional charge, capped at 5.5% of your income, that goes toward improving infrastructure and the economic situation nationwide.
- Social Insurances: You also must make contributions to various social insurance plans, such as pension (Rentenversicherung), health insurance (Krankenversicherung), unemployment insurance (Arbeitslosenversicherung), and long-term care insurance (Pflegeversicherung).
If you want a deeper dive into the German tax system, check out our Tax Calculator for Germany.
What Is a Good Salary in Germany?
Germany is a highly sought-after country in terms of its wages and quality of life. With one of the largest economies in the world and thriving specialist industries (including automotive, pharmaceutics, and electrical engineering), it's no wonder why the country is the most popular immigration destination behind the United States.
The median gross salary in Germany is €44,074 per year or €3,673 per month, according to figures from GEHALT.de for 2022. This means that half of people earn more while half earn less. A good salary would be between €50,000 and €60,000, which will place you well into the upper 50th percentile of employees in Germany and will guarantee a comfortable lifestyle just about anywhere in the country.
Of course, gross salary isn't what's hitting your bank account every month. Germany is known for its high taxes and contributions, and depending on where you live, that money can go further. Wondering where you fit? Plug your income into our Salary Calculator for Germany!
What Is the Minimum Wage in Germany?
Germany has one of the highest minimum wages in the European Union (EU). The current national minimum wage is set at €10.45, but they're incrementally increasing the wage to €12 by October of 2022 to keep up with inflation. Considering that the average full-time employee works 41 hours a week, this works out to €2,132 a month or €25,584 a year.
According to our salary calculator for Germany, that's a net salary of around €18,405, or €1,534 a month, if we run the numbers in Berlin. That means a full-time minimum wage earner should expect to part with around €7,179 in taxes per year.
The increased minimum wage also affects marginal employment — which are so-called "mini-jobs" with salaries unaffected by social security. These jobs were previously set at a €450 monthly minimum. Now, they have increased to €520. For workers who are subject to social security contributions, "midi-jobs" have raised from €1,300 a month to €1,600.
What Is the Average Salary in Germany?
According to the latest report compiled by GEHALT.de, the national average salary in Germany in 2022 is €51,009, which represents a 3.7% increase from the 2021 figure of €49,200, published by the Federal Statistical Office. While knowing the average gross salary is useful, the figure can be skewed by high earners. The median gross salary gives a better indication of what people in Germany actually earn, since it sits at the 50th percentile. Moreover, location has a significant impact on wages, so let's examine what the median salaries look like in the largest German cities.
You can see that the highest median salary was found in Frankfurt, coming in at €54,080. That corresponds to a take-home pay of €34,185. Stuttgart and Munich follow closely behind at €53,592 (€33,933 after tax) and €53,886 (€34,085 after tax), respectively. While Frankfurt, Stuttgart, and Munich all have similar salaries, the costs of living vary quite a bit. Frankfurt's cost of living is lower by just about every standard compared to Munich, and Stuttgart has a lower cost of living than both.
Employees in Hamburg and Cologne can expect similar salaries (€46,800 for both, corresponding to a €30,356 net salary). While they're both more cost effective than the previous cities, the cost of living in Hamburg is still significantly higher than Cologne. Berlin, with our lowest median gross salary (€42,224 or €27,878 net of tax), has similar living costs to Hamburg. You can test out what your income would look like in each city using our German salary calculator.
|Median Gross Salary||Net Salary|