Long-Haul - are you definite about that???The rate of income tax in Germany increases progressively, ranging from 0% to 45% (marginal tax rate). The so-called solidarity surcharge (Solidaritaetszuschlag) at a rate of 5.5% of income tax has to be paid on top of this (e.g. 25.00 % tax rate * 5.5 % solidarity surcharge = 26.375 % taxes in total). No income tax is charged on the basic allowance, which is EUR 7,834 (2009) for unmarried persons and EUR 15,668 (2009) for jointly assessed married couples.I know in Ireland - that you are not taxed on the first few thousand - and then taxed at what ever rate after that. Id be interested to hear other peoples opeinions on this -
I spent a lot of time yesterday with the calculators and tried to figure out how the monthly wage and yearly tax are calculated and the correlation between the two. I can't surely say that i understood everything. But here is what i learnt. Actually they deduct the basic allowance from the gross annual pay and then the remaining amount is taxed. In your case, if you are single then, your monthly tax
will be calculated as follows apart from other deductions for (Obligatory Pension Insurance, Unemployment Insurance, 14% Health Insurance (+ 0,9% from the Employee alown)and Disability Insurance.)
Your Gross (monthly) = 4,166 €
Lump sums deducted (monthly) from gross = 353,9 € (Here is where i spent hours together but am unable to find out how this monthy deduction is calculated. If anyone can throw somelight here then it will be of real help)
Your taxable monthly pay = 4166 - 353,9 = 3812.10 €
You can check this by typing your gross pay, i.e 4166 € in this calculator.
If you multiply 3812,10 € by 12 then the amount you get equals the figure indicated in the calculator as
calculation is based on a taxable income per year (lump sums deducted) : 45745.0 Euro
Accordingly your monthly take home will be 2368,40 € per month.
But what i said yesterday is partly correct. In the Tax-Free Allowence (from Tax card)
bracket in the calculator, you don't put anything. i.e. you just add a "0" there. The 7664 € basic allowance deduction will automatically happen if you are a single person and if you have any further tax free allowance like "pendler pauschale" (commuting allowance) etc etc, then you should add that in this box and not the basic allowance.
Hope this is of some help to you.