Germany Tax Tables 2023 - Tax Rates and Thresholds in Germany
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This page contains the Tax table for the calculation of income tax and payroll deductions in Germany in 2023. These tax tables are used for the German income tax calculator and associated tax and payroll calculators published on iCalculator™ DE
German Municipal Trade Tax Rates in 2023
German Trade Tax Rates by Region (Gewerbesteuer)
Municipal Trade Rates are used as part of the German Corporation Tax Calculation.
German Capital Gains Tax (Kapitalertragsteuer) Rates in 2023
Germany Capital Gains Tax Tables in 2023: Capital Gains Tax Rates and Thresholds (Annual)
|Capital Gains Tax Rate||Applies to:|
German Value Added Tax (VAT) Rates in 2023
The VAT rates for 2023 are provided in the table below, you can use the German VAT Calculator for additional information on VAT in Germany and to calculate VAT online.
German Value Added Tax (VAT) Rates in 2023
|0%||Zero Rated VAT|
|7%||Reduced Rate VAT|
|19%||Standard Rate VAT|
Germany Payroll Taxes, Deductions and Social Security Rates 2023 1
|Social Security Contributions||Employee Rate||Employer Rate||Annual Cap|
|Health Insurance||7.3%||7.3%||€ 54,450.00|
|Nursing Care Insurance||1.175%||1.175%||€ 54,450.00|
|Pension Insurance||9.35%||9.35%||€ 73,800.00||€ 80,400.00|
|Unemployment Insurance||1.5%||1.5%||€ 73,800.00||€ 80,400.00|
|Amount Deductible for Old Age Allowance||5.984%|
|Maximum Amount of Deductible Health Insurance||€ 4,844.00|
1 Rates and figures shown are those used in this calculation. If you see an error please contact us. We aim to ensure complete accuracy in our tax calculators but kindly request you support this free tool by reporting any errors.
2 Pension Insurance reimbursement capped at 90, 100% applies from 2025
Pension scheme contributions
Pension scheme contributions are capped at a specific threhold each year and depend on your marital status. Contributions deductions are planned to provide tax relief at 100% in 2025, current releief rates are shown in the table below.
Pension scheme contributions cap (planned and actual max % rates)
|Tax Year||Relief percentage|
Germany Income Tax Rates and Personal Allowances in 2023
The Income tax rates and personal allowances in Germany are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the German Income Tax Calculator 2023.
Tax classes (Steuerklasse) in 2023
Most non-residents fall into either Tax class I or III (One or three). If both partners are working then tax class IV will apply.
2023 German Income Tax Classes (Steuerklasse)
|I||Those single or separated, but not falling into either category II or III.|
|II||Single and separated, with a child, entitling them to a child's allowance.|
|III||“Married”, or “widowed employees who are within the first year of a spouse's death”|
|IV||Married employees both of whom receive income|
|V||Married persons who would normally fall into category IV, but whose spouse is in tax class III.|
|VI||Employees who receive income from other employment on other, or several different tax cards (Lohnsteuerkarte).|
Germany Minimum Wage in 2023
The minimum wage in Germany for the 2023 tax year is € 10.45. We have provided some salary examples to illustrate the mimum wage below:
Germany Personal Income Tax Rates in 2023
Taxable Income - Your employment income will be considered taxable if it falls under any of the following income categories: Employment, Business, agriculture and forestry, independent profession, capital investment, rents and royalties, Other personal income. Let’s see the rates on which the employers withhold the taxes.
Rates - Personal income tax is levied at progressive rates as per below chart:
Germany Residents Income Tax Tables in 2023: Income Tax Rates and Thresholds (Annual)
|Tax Rate||Taxable Income Threshold|
|0%||Income from € 0.000.00||to|| € 10,908.00|
|14%||Income from € 10,909.00 ||to|| € 62,809.00|
|42%||Income from € 62,810.00 ||to|| € 277,825.00|
|45%||Income from € 277,826.00|| and above|
The German Income Tax Tables in 2023 use geometrically progressive rates which start at 14% and rise to 42%. This means that those rates are calculated as a linear evoving ratio rather than a straight percentage as typical in most other countries around the globe. If you are calculating your salary and income tax in Germany Manually, you need to factor in the geometrically progressive rates.