Net Salary Calculation

15 posts in this topic

Hi all-

 

I know that this topic has been hammerred in other posts - but id like to get a definiye answer on this before i accept a job offer. Im an IT systems administrator (Wintel) with 4 years experience - the salary im being offered is 4,166 € per month, is that around average?

 

What does my net work out at? I would say that I am tax class 1.

If I use one of the calculators - the result is 2,600 approx per month,. does that look about right?

 

Also are health insurance and pension included in my deductions , i.e. is the €2,600 take home pay?

 

Thanks in advance.

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Wait a minute...

 

Go through this link and see if it answers your question. It's in plain simple English.

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the average gross salary for regular computer-administration is 43900€/year in germany, so you probably know something other people don't or you're quite lucky

http://www.heise.de/ct/artikel/Wer-verdient-wie-viel-291472.html

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Hi Long Haul - so what do i Put in the tax free allowance part? is €7,555 pretty much the standard?

 

thanks

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You put nothing or "0". See what works.

 

7,555€ Standard for what???

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You put nothing or "0". See what works.

 

7,555€ Standard for what???

 

for a persons tax free allowance - the amount you earn tax free

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You put nothing or "0". See what works.7,555€ Standard for what??? for a persons tax free allowance - the amount you earn tax free

 

Errr??? I think you have got the whole thing wrong. If your annual income is equal to or below 7,555€, then you don't pay any tax. If your income is 10k, that means, you will be taxed for 10k. And if i am correct, income between 7,555 and 12,740 or something of that sort, then you have a single tax slab of 24% and incomes crossing that amount increase incrementally.

 

In your case. You do not have any tax free allowance.

 

cheers

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And for your better understanding,

 

 

Individual Income Taxes

In 2005/2006 an income of less than €7,664 is tax-free for a single person (€15,328 for a married couple). Incomes up to €52,151 for a single person (€104,302 for a couple) are then taxed with a rate progressively increasing from 15% to 42%. Incomes over €52,151(€104,302) are taxed at 42%. In addition to this there is the "solidarity surcharge" of 5.5% of the tax, to cover the costs of integrating the states of the former East Germany.

Deductions are granted for circumstances such as children under 18 (or under 27 if still attending school and without earnings), specified insurance premiums, charitable and political contributions to German entities up to certain limits and unavoidable extraordinary expenses above a certain limit (such as illness).

Deductions from compensation are also made for four social programs; retirement, unemployment, health insurance and long-term nursing care. Payments for these programs are borne equally by the employer and the employee. The employer's share of contributions is not considered as taxable income to the employee and the employee's portion is tax deductible up to a certain limit.

If an individual is subject to German tax, generally most sources of income are then taxable. The Lohnsteuer (wage tax), which alone accounts for a third of the German government's revenue, is withheld at source from compensation. Income from other sources (e. g. self-employment, fees for services, rent collections, investments and the like) are covered by the Einkommensteuer (income tax).

The Lohnsteuer differs from the Einkommensteuer only by the method of collection. The Lohnsteuer is collected at source and paid directly to the Finanzamt (tax office) by the employer while the individual must pay the Einkommensteuer himself. Therefore the Lohnsteuer is comparable to the income tax withholding shown on the U.S. Form W-2 (Lohnsteuerkarte).

Based primarily on your final payment for the previous year, the Finanzamt will estimate your tax for the current year and require you to make prepayments (Vorauszahlungen) of a quarter of the tax on March 10, June 10, September 10 and December 10. The total tax liability is determined by filing an income tax return, which includes all types of income from all sources. Wage tax withholding as well as provisional payments are deducted from this total tax liability so that a refund or final tax payment is assessed. The tax assessment is usually issued by the Finanzamt between two and six months from the date the return is filed. No payment will be due before receipts of the tax assessment notice.

Every tax return is under audit, therefore if the tax assessment is issued and is not preliminary, the assessment can only be changed in the future by the occurrence of extraordinary circumstances (e. g. tax evasion).

As a rule, the income tax return (Einkommensteuererklärung) should be filed by May 31 of the year following the one in which the income was received. If you use the assistance of a tax consultant, you have an automatic extension to file until September 30. There may be penalties and interest assessed if the return is filed late.

There are a few situations where the taxpayer is required to pay taxes even though the income is less than the personal allowance, especially when tax-exempt income (such as foreign-sourced income) must be considered for the determination of the applicable income tax rate (progression clause). Taxes are then assessed based on a sliding scale.

And please use the search function and go through the other posts. This topic has been covered many times over.

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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 -

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That was my interpretation. From the text you have provided, it looks like i am wrong, But maybe some experts here can throw some light on this?

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I used the same calculator and typed in my monthly gross pay in the "gross" field and put a 0 for "non taxable amount" and the result i got correlates with the net income i get every month. only that i pay 14,9% health insurance and the calculator has only 14,6% as the highest slab and i took it. But with the differences worked out, the calculator seems to be correct.

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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.

 

Cheers,

 

Lh

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I found this Gross / Net German tax calculator helpful when trying to understand how I would be taxed in Germany.

 

It explains certain things, such as the categories (single, married, married with spouse out of work), and it also allows you to choose your state, age, Health Insurance add on, as well as deselect the church tax if you are not religious or do not support paying taxes to religious organizations.

 

When you click "berechnen" ("calculate") the site will give you a breakdown all of the taxes as well as "social charges" you would probably be taxed for that year, with the yearly and monthly net income at the bottom. I used Google Chrome since it automatically translates websites into English which made things easier to understand.

 

I hope it helps!

 

https://www.brutto-netto-rechner.info/gehalt/gross_net_calculator_germany.php#

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Hi All,

 

Some questions. 

We are a married couple and want to file tax together.

I am using www.steuergo.de Its really helpful because its in English and gives tips and references from exact Laws.

 

1. During 2017, I was doing my PhD, so I was enrolled in University, where exactly in the tax return form I can write the university fee?

2. My wife was doing masters, so where to write her university fee in the tax return form?

3. During March to May, my wife did a mini-job (less than 300 Euro), we have to mention this job or we skip it? 

4. I and my wife paid for getting resident and work permit, that is, fee in Ausländerbehörde for getting Aufenthaltstitle. In my opinion, I need it for doing work, so it comes under direct work related expenses. If anyone has claimed it before then where to write exactly?

5. For house related costs (nebenkosten) which are paid by all tenants for building management, I got to know we can claim three of them, (a) Hausreinigung, (b) Hausmeister and (c) Gartenpflege. But at some forums I got to know we can also add any insurances (Versicherungen, e.g. protection against winter snow), property tax (grundsteuer). Can anyone please share what we can claim exactly from nebenkosten ?

6. Can anyone explain me what is  zumutbare Belastung beträgt ? It is coming in steuergo under exceptional costs, where I want to enter money I sent to my parents (Unterhaltungskosten). I cannot understand the calculation it explained to me,

 

"Important: In the case of extraordinary burdens under § 33 EStG, the legislator expects each taxpayer to bear a share of the costs himself. Therefore, only those expenses are taken into account which exceed the reasonable burden and which are actually necessary.

In a recent ruling (VI R 75/14) of 19.01.2017, the Federal Fiscal Court ruled that the reasonable burden had to be calculated in a multi-stage staggered procedure (contrary to the previous calculation method). SteuerGo calculates the reasonable burden according to the new method. If your tax office should set a higher reasonable tax burden in your tax assessment, you should file an objection against the tax assessment."

 

The steuergo referenced two links; I 

 

https://www.lohnsteuer-kompakt.de/steuerwissen/neue-berechnung-fuer-die-zumutbare-belastung/

https://www.lohnsteuer-kompakt.de/steuerwissen/aussergewoehnliche-belastungen-wie-sie-die-zumutbare-belastung-jetzt-berechnen/

 

7. I started a job in Nov 2017, in the supplementary documents which company gave to me along with contract, it was written that employee posses a driving license, but practically I didn't have, so they asked me (during last interview in September 2017) to start it as early as possible. I then started it in October 2017. Can I am eligible to claim the cost for it as its directly written in my employment papers?

 

Looking forward to know about these questions.

 

 

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