In Germany, income tax (Einkommensteuer) is deducted at the source, meaning that your employer withholds it directly from your gross salary and transfers it to the tax office (Finanzamt). This system, known as pay-as-you-earn (Lohnsteuerabzug), ensures that taxes are paid on a monthly basis

Germany follows a progressive income tax system, where higher incomes are taxed at higher rates. The system ensures everyone contributes according to their earning capacity while providing tax-free allowances for lower-income individuals. Key factors in determining income tax include the basic

In Germany, income tax is not only based on how much you earn but also on your family status. The German tax system uses six different tax brackets (Steuerklassen) that determine how much income tax is withheld from your salary. Your tax class affects your monthly net salary and potentia

Filing an income tax return (Steuererklärung) in Germany allows you to claim tax deductions and potentially receive a refund if you’ve overpaid taxes. While not everyone is required to file, many taxpayers benefit from doing so, as the average refund is around €900, according to data from the Federal Statistical

Filing your income tax return (Steuererklärung) in Germany can be done independently or with professional assistance. The best option depends on your financial situation, tax knowledge, and time availability. While doing it yourself saves money, professional help can optimize

Germany’s social security system provides protection against illness, workplace accidents, unemployment, and retirement. It’s compulsory, with contributions deducted from your salary and shared between you and your employer, ensuring comprehensive coverage.

Statutory Health Insurance: Covers medical visits, medications, and therapies.
Statutory Long-Term Care Insurance: Provides basic coverage for long-term care needs.

Social security contributions are deducted from your salary as a fixed percentage. Your employer also contributes a share. For example, the contribution rate for statutory health insurance is 15.5%, with 8.2% paid by you and 7.3% by your employer.

You can choose among various health insurance providers, although the standard contribution rate is consistent. If your income exceeds a specific threshold, you may opt for private health insurance. Switching back to statutory insurance can be complicated.

As an employee, you will receive a social security card with a social security number on it. Give this number to your employer. Keep your social security card safe as you will often need the number. r. If you lose your social security card, you can ask the German state pension fund for a replacement.

EU/EEA/Swiss Countries: You retain German pension rights and can receive pensions from any EU or EEA country where you worked.
Countries with Social Security Agreements: Germany has agreements with countries like Australia, Canada, Israel, Japan, Turkey, and the USA.