Expat Tax in Berlin

Whether or not you work for a German company, all residents of Germany must pay taxes in Germany. However, needing to pay taxes on that same income in your home country depends on the agreement that has been reached between that country and Germany. To see if you are exempt from double taxation while residing in Germany.

Taxes are taken out of your gross pay (Lohnsteuer, or wage tax) by your employer. Incomes of less than €7,664 for a single person and €15,329 for a married couple are not taxed. Incomes up to €52,152 single / €104,304 married are taxed on a sliding scale from 15-42 percent, with incomes over this amount capped at 45 percent.

All other sources of income (Einkommensteuer) are taxed at varying rates. In addition, there is a solidarity tax of a little over 5 percent that has been in effect since the East and the West were reunited; a church tax, and other pay-ins such as for unemployment and retirement benefits.