In Germany, tax residents are obliged to pay taxes for the full amount of income received from all around the world.
At the same time, non-residents are obliged to pay taxes for the income received on the territory of Germany (§ 49 EStG).
1) The income tax (called "Einkommensteuerrechner" in German) is calculated according to a progressive model, i.e. the higher the income, the bigger are taxes.
Income tax rates in 2018
- first rate from 14% to 42%,
- the income tax rate of 42% is applied for the income above 54,950€,
- the income tax rate of 45% is applied for the income above 260,533€
More detailed information about the tax rates can be found at the official website of the ministry
2) In addition to the income tax, one is obliged to pay the solidarity tax
(called "Solidaritätszuschlaggesetz" (SolzG) in German), which is limited with the amount of 5.5% of the income tax.
3) In Germany, churches are allowed to impose the so-called church tax
("Kirchensteuer" in German) for the amount of 8-9% from the income of it's parishioners (the amount depends on the region).