Choose your preferred language
Choose your preferred language

Brutto? Netto? How net and gross impact your income

On the paycheck, all invoices, and your tax return, a distinction is made between gross and net. Many employees notice this difference every month on their bank statement when they realize what is left after income tax and social security contributions.
Do the free tax check now

From gross income to net income

During the negotiations for their job contract, most people try to get a high gross salary. But when they look at their bank statement, they find out that not all the salary is paid out.

Are you employed, unmarried, not in a civil partnership, and earn more than 9,408 euros per year? Then your income is above the basic allowance, and you need to pay taxes.
Your employer subtracts taxes and social security contributions from your earnings to forward it to the relevant offices. This would be the wage or income tax and social security contributions, the solidarity surcharge, and, if applicable, the church tax.
Your social security contributions are also deducted. This includes pension, health, nursing care, and unemployment insurance.
The net salary is the money that ends up in your bank account each month.

What does income mean?

Your gross income

Income tax (Lohnsteuer): 14-45% The higher the income, the higher the income tax.

Church tax (Kirchensteuer): 8-9% of the taxable income

Solidarity surcharge (Solidaritätszuschlag): up to 5,5% of the taxable income

Health insurance contribution (Krankenkassenbeitrag): 7,3% + Additional contribution from earnings

Nursing care insurance (Pflegeversicherung): 1.525%, 2,025% in Saxony, Possible supplement to earnings

Unemployment Insurance (Arbeitslosenversicherung): 1.25 % of earnings (as of 2019-01-01), 1.2 % as of 2020-01-01

Pension Insurance (Rentenversicherung): 9,3 % of earnings

= Your net income

Calculate what you could get back from taxes

Do you want to get a good estimation on how much you’re going to get back from tax office?

Our tax calculator can tell you exactly that!

Julian Schwarzmann
by Julian Schwarzmann
published on: 18.08.2022
updated on: 29.08.2022

Optimized for Kurzarbeit and ALG I

Have you faced short-time work (Kurzarbeit) in 2020 or 2021 and are, therefore, obligated to file your taxes? Use Taxfix and file your taxes quick and easy.

You might also be interested in this
About Taxfix

With Taxfix you can do your tax return quickly and paperless from anywhere – both via the app on your smartphone and online in the browser. You provide information about your tax situation according to the question-and-answer principle and have your possible refund calculated. Your data will then be securely transmitted via the ELSTER interface.