Paying Taxes in Germany

Important Tax Information

Important information you should know before you begin work in Germany. This section will tell you about some of the practical issues which you will need to consider after you have started working.

Income Tax and Social Security Rate in 2011

In 2011, the tax rates for individual persons ranged from 14-45%. No income tax is charged on an income of €8,004 or less for a single person (€16,008 or less for jointly assessed married couples).

Deductions

The German income tax law enables its tax payers to deduct a fair amount of their costs. Deductible expenses allowed for business purposes are any income related expenditures for which a standard deduction of 1,000 € is granted.

Various Other Taxes

There are a number of other taxes that both individuals and businesses in Germany are required to pay. „Mehrwertsteuer“ is a value added tax of 19% put on most products and services available for purchase.