Tax brackets in Germany 2022 | German Taxes

Are you a citizen or a resident in Germany and you are wondering how your tax is being calculated?Do you know if you are paying the right tax as a German citizen? With the German tax bracket for 2022, you will be able to check your tax rate according to your monthly income.

German Taxes are levied by the federal government (Bundesregierung), federal states (Bundesländer) and municipalities (Gemeinden). Tax administration is shared between two taxation authorities: the Federal Central Tax Office (Bundeszentralamt für Steuern) and the approximately 650 regional tax offices (Finanzämter).

How much is the income tax in Germany? Does Germany have tax brackets? Are taxes in Germany too high? How much tax do foreigners pay in Germany?

In this article, you will get to know the tax bracket in Germany 2022, the areas through which you pay tax as a German citizen, the penalties for failing to lay tax in Germany as well as the types of tax in Germany you are entitled to

Tax Bracket in Germany 2022

The list below shows the German income tax brackets for 2022 as follows:

Income Tax Rate

Less than 9.984 euros 0%

9.985 – 58.596 euros 14% to 42%

58.597 – 277.825 euros 42%

More than 277.826 euros 45%

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Areas of Tax deduction in Germany

As a working-class citizen or resident in Germany, it is your duty to pay tax and most importantly, it is your right to be sure that you are paying the right tax that suits your monthly income. Here are the cases of tax deduction in Germany:

  • Employment expenses (unless already reimbursed by an employer)
  • Relocation expenses
  • Alimony payments to divorced or separated partners
  • Charitable contributions to German charities
  • Cost of childcare
  • Expenses for education or schooling
  • Social security contributions
  • Church tax
  • Mortgage interest payments (buy-to-let mortgages only)

Failure to pay tax in Germany

In Germany, if you earn monthly, and you file or pay your taxes late, fail to file your tax declaration or fail to declare income, you risk a hefty fine of up to 50.000 euros or a prison sentence.

Types of Tax in Germany

There are different areas tax are being payed in Germany. They include:

  1. Church Tax: During registration in Germany, you will be asked to declare a religion. If you declare yourself Protestant, Catholic or Jewish you are liable to pay the church tax, which the tax office collects on behalf of religious organisations in German
  2. Solidarity Surcharge: It is a 5,5% tax supplement that is payable on income tax, capital gains and corporation taxes
  3. Benefits in Kind: Benefits in kind are perks or benefits you receive from your employer, such as the use of a car.
  4. Withholding Tax: Withholding or payroll tax is income tax and other contributions that your employer withholds from your salary.

We trust that this information on the Tax bracket in Germany 2022 has been useful to you. Do well to bookmark us for recent updates.

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