Germany

Individual - Sample personal income tax calculation

Last reviewed - 30 June 2021

Facts and assumptions

  • This is a sample tax calculation for the year 2021.
  • Married couple with two dependent children under age 18 years.

Income

  • Gross salary of one spouse of EUR 100,000, other spouse has no income.
  • No employment related expenses exceeding the lump sum allowance of EUR 1,000.
  • Rental income from German sources of one spouse totals a loss of EUR 5,000.

Expenses

  • Church tax of EUR 1,205 (wage church tax).
  • Donations of EUR 250.

 Tax computation

EUR EUR
Earned income:    
Gross salary 100,000  
Lump sum deduction employment related expenses (1,000)  
Income from employment   99,000
Rental loss (5,000)  
Net income   94,000
Deductions:    
Church tax (1,205)  
Donations (250)  
Social security contributions limited deduction (11,986)  
Child allowance (EUR 8,388 per child) (16,776)  
Taxable income   63,783
Income tax 11,344  
Child benefit for two children 5,256  
Solidarity surcharge 0  
Church tax 1,021  
Total tax due   17,621
Less prepayments:    
Wage tax (19,128)  
Solidarity surcharge on wages (0)  
Church tax on wages (1,205)  
Total tax paid   (20,333)
Total tax refund after tax assessment   (2,712)