German taxes

[cccc]

Hi all,

I don't know if this is the right place for it...

I just have a question about German taxes (I couldn't find anything on this site). Because I might start working for a German company, and I was wondering how much the taxes are in Germany. How much do you keep after taxes?

Thanks in advance for your replies.

Cheers,
CCCC

[Denti]

Hi all,
I don't know if this is the right place for it...
I just have a question about German taxes (I couldn't find anything on this site). Because I might start working for a German company, and I was wondering how much the taxes are in Germany. How much do you keep after taxes?
Thanks in advance for your replies.
Cheers,
CCCC

Well, the first place to look for information about taxes is of course www.bundesfinanzministerium.de (ministry of financial stuff), however that site is in german only as far as i can see. Your income is tax free below 7665€/year, above that taxation starts at 15% of your income and maxes at 42% at an income of 52152€ a year. Add to that social insurance, one part of that is the so called "Arbeitslosenversicherung" (roughly out of work insurance) which is at the moment 6.5% of your income, payed in half by you and your employer, that is supposed to be reduced in 2007 to 4.5% (all social insurance is capped at 63000€ a year base income). Another part is the so called "Rentenversicherung" (basicly a basic pension) which is at the moment 19.5% of your income, again payed in half by you and your employer, that rate is supposed to raise to 19.9% in 2007. You have to have a medical insurance, if you earn more than 42.250€ a year you can insure yourself with an independent insurer, most of them have insurance rates in absolute figures, not related to your income. If you are below or choose not to insure yourself independently (private krankenversicherung) you have to be insure in a so called "gesetzliche Krankenversicherung", those have rates in % of your base income, iirc at the moment rates are around 14%, that has to be payed in half by you and your employer, if you insure yourself at a "private krankenversicherung" your employer has to pay half of that too.

Just an example, i earned 5248,58€ before taxes in august, after taxes that was 3102,12€, i am independently insured so i save quite a bit of money on that thing.

German taxation law is probably one of the worst things to work out if you want to do that, even experts normally have only a grasp of a part of it.

[Newforest]

This site might answer some of your questions!
http://www.expatica.com/actual/toc.asp?subchannel_id=26

[cccc]

Hi guys,
Thanks for the answers. It's indeed something you don't figure out just like that. The webisite will keep me busy to figure it out.
Thanks again for the replies.
Cheers,
cccc

[Martin1234]

Add to that social insurance, one part of that is the so called "Arbeitslosenversicherung" (roughly out of work insurance)

Is Arbeitslosenversicherung compulsory or can you elect not to have it?

[ptr120]

German income tax can be particularly complex, and I would recommend that you talk to a German tax advisor to get a clearer idea of what your personal situation could be. For example, you may be able to claim various double household taxation allowances which could lead to a significant rebate each year. If you would like me to refer you to the (English speaking) tax advisor I use here in Germany, please feel free to PM me.

[Denti]

Is Arbeitslosenversicherung compulsory or can you elect not to have it?

It is compulsory if you're not self employed (sadly).