German tax system compared to other countries

Is the tax system in Germany similar in US,UK or Australia.I find it strange for a married couple both working, one who earns more in class III and other in V (more than 50 percent income goes to taxman)

Not even CLOSE to the taxes in the US.

In the US, if an unmarried taxpayer earns $2,000 a month, they will pay maybe $250 a month in Federal Income Tax. Rougly $75 for state (each states vary and some don't have state taxes), and then social security, FICA, and some other BS. Total is about 15% - 20% of their pay. Then, at the end of the year, a smart taxpayer can get most, if not all, of their Federal and State taxes back.

In Germany, once the tax is taken out, it takes an act of God to get any of it back. A German co-worker got her Christmas bonus of 2,200 Euro. Out of that bonus, she only had 1,000 Euro left after taxes. Ummm... garbage. Sure, I agree with the whole German system on health care, education, etc. But with a 19% sales tax and the ungodly amount of tax taken from paychecks, it can be hard to get by.

Remember that not all deductions are "tax"; they include health insurance and pension contributions as well. You can also opt out of the Church Tax.

Thanks for the response

How to calculate tax on Christmas bonus,i was shocked to see 50% got deducted
Why do one needs to pay Solidarity and Pension if no plans of living here for long term.

Below given are the list of deduction, are they all mandatory.

Income Tax
Solidarity Surcharge
Pension Insurance
Church tax
Unemployment Insurance
Health Insurance
Nursing Care Insurance

Firstly, there is no way of measuring "intent" and charging taxes accordingly. The state has no idea if someone plans to live in a country long-term or not, and in many cases nor does the individual concerned. Secondly, those deductions are not all mandatory – I already mentioned that church tax was voluntary. Thirdly, as you are presumably aware, those deductions are not all taxes – they include insurances that everyone in all countries should have. Fourthly, you may be able to receive a refund on your pension contributions if you do leave after a short period of time or, alternatively, you can claim the German state pension even if you are living abroad.

No it doesn't I got a refund quickly this year and with no hassle.

Colleagues (many of whom are Steurberaters) also say that most people can generally expect a tax refund each year for various "tax allowable" expenses and that the Finanzamt is pretty prompt in repaying.

compared with Ireland, taxes here are crippling.

I calculated I would have been getting 500 euro more cash per month in Ireland on an equivalent salary, and I wasnt on particularly huge money.

The system in Ireland generally rewards work and punishes unemployment - there is a minimum wage which is kept pretty much out of the tax net and the unemployment money is a low flat rate. When working, therefore, you are guaranteed much more than when unemployed.

The system here seems to punish workers by taking a lot of their wages and reward unemployment (once enough unemployment insurance contributions have been made).

There's a cap on Arbietslosengeld and it's only paid for a limited period. Hartz IV (what you go onto after the time limit for ALG) is about 400 EUR per month for a single person, plus (capped) rent. Not a great deal.

You forgot to mention that the irish Healthcare Service and Public Transport are one of the worst in Europe.

Ireland is a ticking timebomb.

Not at all, I put those comments in the "German healthcare service and public transport compared to other countries" thread.

This is optional. It's a tax on believers to test their faith - a mere five letters 'keine' can save you a lot of money if you write them in the right place.

I've only been working here for few months so far- should I be entitled to a tax refund at the end of the year? If so, have I got to request the refund myself, or would it be taken care of through the company I work for?

YOU submit your tax forms - not your employer. Do you necessarily want your employer to know all the details that might go in there?
Whether you qualify for a tax rebate depends on many factors & the great Oracle of TT cannot determine that on evidence provided. For instance if you earned nothing for most of the year then you may be in for a refund; if you earned money in another country it could get interesting...

You forgot the Irish Healthcare , Social Welfare ,Service and Public Transport are one of the worst and most costly in Europe.