Germany

Individual - Sample personal income tax calculation

Last reviewed - 09 July 2020

Facts and assumptions

  • This is a sample tax calculation for the year 2020.
  • Married couple with two dependent children under age 18 years.

Income

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

Expenses

  • Church tax of EUR 1,290 (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 (1,290)  
Donations (250)  
Social security contributions limited deduction (10,960)  
Child allowance (EUR 7,812 per child) (15,624)  
Taxable income   65,876
Income tax 12,204  
Child benefit for two children 4,896  
Solidarity surcharge 671  
Church tax 1,098  
Total tax due   18,869
Less prepayments:    
Wage tax (19,770)  
Solidarity surcharge on wages (788)  
Church tax on wages (1,290)  
Total tax paid   (21,848)
Total tax refund after tax assessment   (2,979)