Germany Tax Rates and Allowances in 2019

Sponsored Links

German Municipal Trade Tax Rates in 2019

German Trade Tax Rates by Region (Gewerbesteuer)
Baden-Württemberg350.7%
Bavaria338.4%
Berlin410%
Brandenburg324%
Bremen460%
Hamburg470%
Hesse379.5%
Lower Saxony371.9%
Mecklenburg-Vorpommern339%
North Rhine-Westphalia448.2%
Rhineland-Palatinate372.7%
Saarland419.3%
Saxony394.2%
Saxony-Anhalt348.9%
Schleswig-Holstein343.3%
Thuringia378.4%

Municipal Trade Rates are used as part of the German Corporation Tax Calculation.

German Capital Gains Tax (Kapitalertragsteuer) Rates in 2019

Germany Capital Gains Tax Tables in 2020: Capital Gains Tax Rates and Thresholds (Annual)
Capital Gains Tax RateApplies to:
25%Resident Individuals
25%Non-resident Individuals
25%Resident Corporations
25%Non-resident Corporations

German Value Added Tax (VAT) Rates in 2019

The VAT rates for 2019 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 2019
RateDescription
0%Zero Rated VAT
7%Reduced Rate VAT
19%Standard Rate VAT
Germany Payroll Taxes, Deductions and Social Security Rates 2020 1
Social Security ContributionsEmployee RateEmployer RateAnnual Cap
East Germany
Annual Cap
West Germany
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 €
Accident Insurance 0% 1.22%
Amount Deductible for Old Age Allowance 5.984%
Maximum Amount of Deductible Health Insurance 4.844,00 €
Church Tax0%8%9%

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 82, 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 YearRelief percentage
2025100%
202498%
202396%
202194%
202092%
201990%
201888%
201786%
201684%

Germany Income Tax Rates and Personal Allowances in 2019

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 2019.

Tax classes (Steuerklasse) in 2019

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.

2019 German Income Tax Classes (Steuerklasse)
Tax ClassDescription
IThose single or separated, but not falling into either category II or III.
IISingle 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”
IVMarried employees both of whom receive income
VMarried persons who would normally fall into category IV, but whose spouse is in tax class III.
VIEmployees who receive income from other employment on other, or several different tax cards (Lohnsteuerkarte).

Germany Minimum Wage in 2019

The minimum wage in Germany for the 2019 tax year is 9,19 €. We have provided some salary examples to illustrate the mimum wage below:

Germany Personal Income Tax Rates in 2019

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 2019: Income Tax Rates and Thresholds (Annual)
Tax RateTaxable Income Threshold
%Income from €0.00to 9.168,00 €
0%Income from 9.169,00 € to 55.961,00 €
14%Income from 55.962,00 € to 265.327,00 €
42%Income from 265.328,00 € and above

The German Income Tax Tables in 2019 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.

Income Tax in Germany in 2019

Taxes, including personal income tax, expenses and limitations are reviewed by the Government in Germany periodically and typically updated each year. Not that not all tax rates and thresholds in Germany change annually, alterations to tax policy to support strategic economic growth in Germany mean that the certain areas may be focused on to provide specific tax relief in Germany or support growth in certain areas (overseas invstment in Germany for example may mean reduced non-resident income tax rates in Germany for a period).

When tax policy in Germany changes, the resultant tax tables also change. Tax tables in Germany are simply a list of the relevent tax rates, fixed amounts and / or threholds used in the computation of tax in Germany, the Germany tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criterea for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in Germany for example).

Germany Tax Tables may also be referred to as Germany Tax Slabs, Germany personal allowances and tax thresholds or Germany business tax rates. They all refer to the tax tables, whether in whole or as specific sections/categories of the tax tables therein. In the section, we publish all 2019 tax rates and thresholds used within the 2019 Germany Salary Calculator. This means that if you are aware of a 2019 tax exemption or 2019 tax allowance in Germany that you are entitled too BUT it isn't listed here, that we don't allow for it in this version of the Germany Salary Calculator. This is simply because we updated our tax calculators based on user feedback, we tailor the Germany Salary Calculator to suit our users needs. Our aim is to keep tax calculations in Germany simple, we achieve this my making the Germany tax calculators relevent to our community's needs, this includes you. So, if you would like a new 2019 tax rates, allowance or threshold adding (or perhaps updating), or if you notice an error in our 2019 tax calculations, simply contact us and we will adjust the tool.

Choose a specific income tax year to see the Germany income tax rates and personal allowances used in the associated income tax calculator for the same tax year.