How German salaries are taxed in 2026
Your German payslip has two big blocks of deductions. Taxes are income tax (Lohnsteuer), the solidarity surcharge (Solidaritätszuschlag) for higher earners and church tax (Kirchensteuer) if you are a registered member of a church. Social insurance covers pension, unemployment, health and long term care insurance, split roughly half and half between you and your employer.
2026 income tax formula
Germany uses a smooth progressive formula rather than fixed brackets. For 2026 the basic tax free allowance (Grundfreibetrag) is €12,348. Above that, the rate climbs gradually from 14 percent to 42 percent, which applies from €69,879 of taxable income, and 45 percent applies above €277,826. Married couples in tax classes III and IV benefit from income splitting.
| Taxable income 2026 | Rate |
|---|---|
| Up to €12,348 | 0% (Grundfreibetrag) |
| €12,349 to €69,878 | Rising from 14% to 42% |
| €69,879 to €277,825 | 42% |
| From €277,826 | 45% (Reichensteuer) |
Social insurance contributions 2026
| Insurance | Employee share | Income ceiling (per year) |
|---|---|---|
| Pension (Rentenversicherung) | 9.3% | €101,400 |
| Unemployment (Arbeitslosenversicherung) | 1.3% | €101,400 |
| Health (Krankenversicherung) | 7.3% plus half the top up (average 1.45%) | €69,750 |
| Care (Pflegeversicherung) | 1.8% (2.3% in Saxony), plus 0.6% if childless from 23, less 0.25% per child from the 2nd | €69,750 |
Solidarity surcharge and church tax
Since 2021 most employees no longer pay the solidarity surcharge. In 2026 it only applies once your annual income tax exceeds €20,350 (€40,700 for couples), with a gentle phase in above that, rising to the full 5.5 percent of income tax for high earners. Church tax is 8 percent of your income tax in Bavaria and Baden Württemberg and 9 percent in all other states, and only applies if you are a registered church member.
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Sources: § 32a EStG (2026 tariff); SolZG 1995 §§ 3 and 4; § 39b EStG and BMF guidance on the 2026 Vorsorgepauschale; Sozialversicherungs Rechengrößenverordnung 2026; Bundesministerium für Gesundheit on health and care insurance contributions; Deutsche Rentenversicherung.
