🇩🇪 German taxes · updated for 2026
Income thresholds, tax-free amounts and tax brackets in Germany.
Germany uses a progressive income tax system. The higher your taxable income, the higher the tax rate on the next part of your income — not necessarily on your full salary.
Last reviewed: May 2026 · Plain-English guide for expats and internationals in Germany
First: taxable income is not the same as gross salary.
Many expats compare their gross salary directly with German tax brackets. That is usually misleading. The brackets are applied to your taxable income after relevant deductions, allowances and special rules.
Gross salary
Your employment contract salary before tax, social security and deductions.
Deductions
Examples include work-related expenses, certain insurance costs and other deductible items.
Taxable income
The amount used to calculate your income tax. This is the number that matters for the tax brackets.
German income tax brackets for 2026.
The zones below apply to taxable income for a single taxpayer. Church tax, solidarity surcharge and social security contributions are separate topics.
Basic tax-free allowance. No income tax is due on this part.
The marginal tax rate starts at 14% and rises gradually.
The marginal tax rate continues rising until it reaches 42%.
The top regular income tax rate applies to this part of taxable income.
The highest income tax rate applies above this level.
What changes for married couples?
Married couples and registered life partners can often choose joint assessment. Germany then usually applies the splitting method.
Rule of thumb
The combined taxable income is divided by two, the tax is calculated on that half, and the result is doubled. This can be helpful when one partner earns significantly more than the other.
Important tax-free amounts in 2026.
These amounts do not automatically mean that your payslip will show exactly this result. Payroll, tax class, health insurance, pension contributions and filing status all matter.
Basic allowance
€12,348For single taxpayers in 2026.
Joint assessment
€24,696Basic allowance for couples if the splitting method applies.
Child allowance
€9,756Per child for both parents combined. The tax office compares this with child benefit.
Common misunderstandings.
- “If I earn more, all my income is taxed at the higher rate.”
Not exactly. Only the part of your taxable income above a threshold is taxed at the higher marginal rate. - “My tax class decides my final tax burden.”
Your tax class mainly affects monthly payroll withholding. Your final annual tax depends on the tax assessment. - “The bracket table explains my net salary.”
No. Net salary also depends on pension, health insurance, unemployment insurance, care insurance and sometimes church tax. - “The child allowance is always better than child benefit.”
The tax office runs a favourable treatment check. Many families effectively benefit from child benefit instead.
Simple example.
Example: taxable income of €50,000
A single taxpayer with €50,000 taxable income does not pay one flat tax rate on the whole amount. The first part up to the basic allowance is tax-free. The next parts move through the progressive zones. This is why your average tax rate is usually lower than your highest marginal tax rate.
FAQ.
Are these brackets based on gross salary?
No. They are based on taxable income. Your gross salary is only the starting point.
Do these numbers include social security contributions?
No. Health insurance, pension insurance, unemployment insurance and care insurance are separate from income tax.
Do married couples always save tax?
Not always. Joint assessment is often most useful when incomes are very different. If both partners earn similar amounts, the effect may be limited.
Should I use this guide for personal tax decisions?
Use it as a starting point. For individual tax planning, speak with a qualified tax advisor.