How much is the income tax?

That is how high the initial and top tax rate is

How much tax you have to pay on your income depends on your personal tax rate.

• In Germany there are different tax classes according to the Income Tax Act. How high your individual tax rate is depends on the amount of all income, after deduction of all tax exemptions.

• If you have a high income, you not only have to pay more taxes in Germany, but also your Taxable income is taxed with the amount of the income also at a percentage higher tax rate. The tax rate is therefore significantly higher for top earners than for low earners.

• From 2009 to 2014, for example, the basic tax rate was 14 percent and the top tax rate was 42 percent. In addition to this top tax rate, there was another tax rate, also known as the tax on the wealthy. During the period, this was always three percent higher than the top tax rate and thus 45 percent.

instagram viewer

• However, you do not have to pay tax on all income. First of all, there is an annual tax exemption for which you do not have to pay any income tax. In 2012, for example, this amount was 8,004 euros.



From when on income tax - notes

In Germany everyone is initially subject to income tax. However, everyone can ...

Effects of tax progression on income tax

When calculating the individual tax rate, it should be noted that you do not have to pay tax on the entire income according to the tax rate.

• In Germany there is what is known as tax progression up to a fixed income limit. This means that the tax rate per person is not fixed and is the same, but is based on the respective income.

• Only the higher income is therefore taxed at the high tax rate, so not For example, all income can be taxed at a top tax rate of 45 percent can.

• The basic tax-free allowance is always tax-free, regardless of income. Tax is only payable on income above this basic allowance, regardless of whether you are a low-income or high-income earner.