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). The marginal tax rate
increases progressively from 14% to 24% between a taxable income above €8,004 (€16,008 for married couples) and up to €13,469 (€26,938 for married couples). The next bracket for incomes up to but not exceeding €52,881 for a single person (€105,762 for married couples) is taxed progressively increasing from 24-42%. Incomes over €250,730 (€501,460 for married couples) are taxed at 45%. An additional 5.5% “solidarity surcharge“ tax for the integration of East Germany is also deducted from your paycheck.

Social security includes health insurance, unemployment insurance, long term care insurance, and the German pension plan. These costs are split equally between employer and employee. Work accident insurance is fully paid by employers. Contributions are deducted directly from your salary. If you are self employed, you pay the contributions yourself.

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