Gross to net salary in Germany 2026: taxes and social security explained

How gross becomes net in Germany

Your gross salary (Brutto) is the amount in your employment contract. Before the money reaches your account, your employer withholds two groups of deductions and pays them directly to the authorities:

• Taxes: wage tax (Lohnsteuer), which is an advance payment on your income tax, plus solidarity surcharge and church tax where they apply.

• Social security contributions: pension, unemployment, health and long-term care insurance.

What remains is your net salary (Netto). To get a figure for your own situation, use the salary calculator. This guide explains each deduction so you can understand and check the result.

Income tax and the 2026 basic allowance

Germany taxes income progressively. In 2026 the first 12,348 euros of taxable income per year are tax-free (Grundfreibetrag). Above that, the rate rises gradually and reaches 42 % on taxable income from 69,879 euros and 45 % from 277,826 euros, according to§ 32a EStG: income tax rates. These are marginal rates: only the part of your income in each bracket is taxed at that rate, so your average rate is always lower.

Taxable income is not the same as gross salary. Allowances such as the employee lump sum for work expenses, deductible social security contributions and, for parents, child allowances reduce it. For wage tax, your employer uses official formulas that include these items automatically.

Tax classes

For monthly wage tax, every employee is placed in a tax class (Steuerklasse) under§ 38b EStG: wage tax classes. The class changes how much is withheld each month, not your final annual tax, which is settled in the tax return.

Class III with V can lower the monthly withholding for the higher earner but can lead to an additional payment after the year. Your employer needs your tax ID to retrieve your tax class electronically.

Solidarity surcharge and church tax

The solidarity surcharge (Solidaritätszuschlag) is 5.5 % of income tax§ 4 SolzG 1995: solidarity surcharge rate, but most employees no longer pay it. It is only charged if your annual income tax exceeds an exemption limit. For 2026 that limit is 20,350 euros of income tax for single filers and 40,700 euros for jointly assessed couples§ 3 SolzG 1995: solidarity surcharge exemption limits. Just above the limit, a reduced transition zone applies, so the surcharge rises gradually. In practice it affects mainly high earners.

Church tax (Kirchensteuer) applies only if you are registered as a member of a church or religious community that levies the tax. It is calculated as a percentage of your income tax and the rate depends on the federal state. If you are not a member, nothing is deducted. Check that your registration with the local authority shows the correct religious status.

Social security contributions 2026

The four social insurances are generally financed half by you and half by your employer. Contributions are charged as a percentage of gross pay, but only up to a monthly ceiling (Beitragsbemessungsgrenze). Income above it is contribution-free.

The pension and unemployment rates come fromDeutsche Rentenversicherung: key figures of the pension insurance and§ 341 SGB III: unemployment insurance contribution rate. Health insurance has a general rate of 14.6 %, and each health fund also charges its own additional rate (Zusatzbeitrag); the official average for 2026 is 2.9 %, and employers pay half of the fund's actual additional rateFederal Ministry of Health: statutory health insurance contributions. The ceilings are published byGerman Federal Government: contribution ceilings 2026.

Long-term care insurance has extra rulesFederal Ministry of Health: financing of long-term care insurance. Employees aged 23 or over without children pay a surcharge of 0.6 percentage points alone, so their share is 2.4 %. Parents with two or more children under 25 receive a reduction of 0.25 points per child from the second to the fifth child§ 55 SGB XI: long-term care contribution and childless surcharge. In Saxony the split differs: employees pay 2.3 % and employers 1.3 % of the base rate.

If your annual salary exceeds 77,400 euros, the 2026 compulsory insurance limit, you may be able to switch to private health insuranceGerman Federal Government: contribution ceilings 2026. Your deductions then follow your private contract instead.

Example: social security on 4,000 euros gross

Take a childless employee aged 30 outside Saxony, with a monthly gross salary of 4,000 euros and a health fund charging exactly the 2.9 % average additional rate.

Wage tax comes on top. Its amount depends on your tax class, allowances and the exact formulas, so the net figure varies. Enter your own data in the salary calculator for an estimate including tax. If you have children, also check Kindergeld, which is paid separately from your salary.

Getting money back with a tax return

Monthly wage tax is only an advance payment. If you had high work expenses, changed jobs, had periods without work or moved to Germany during the year, the final income tax can be lower than what was withheld. A tax return then results in a refund. Keep your annual payroll tax certificate (Lohnsteuerbescheinigung), which your employer issues after the end of the year.

Information current as of 6 November 2026.