Question 1

What is taxable income — and how do I get there?

Accepted Answer

Taxable income is the figure the tax tariff is applied to. You get there by subtracting the deductible amounts from the sum of all income: work-related or business expenses, special expenses such as pension contributions and donations, extraordinary burdens, and various allowances. Employees get at least the €1,230 employee allowance and the €36 special expenses allowance. Income tax is charged only on that result — not on the gross salary.

Question 2

How high is the basic allowance in 2026?

Accepted Answer

In 2026 the basic allowance is €12,348 per person under § 32a(1) EStG. Below that level of taxable income no income tax is due. For jointly assessed married couples and civil partners the amount doubles to €24,696, because the tariff is applied to half the combined income. The allowance protects the subsistence minimum from taxation and is therefore raised regularly.

Question 3

What is the difference between the marginal and the average tax rate?

Accepted Answer

The marginal rate says how much tax falls on the next euro you earn. The average rate is total income tax divided by taxable income. Example: at €60,000 taxable income under the single tariff the marginal rate is already around 39 percent, while the average rate is just under 24 percent. The reason is the progressive tariff: the first €12,348 stay tax-free and later slices are taxed at rising rates. For what a pay rise leaves you, the marginal rate matters; for your total burden, the average rate does.

Question 4

From what income does the 42 percent top rate apply?

Accepted Answer

The 42 percent top rate starts in 2026 at €69,879 of taxable income under the single tariff, and correspondingly at €139,758 under joint assessment. Importantly, 42 percent is not charged on the whole income — only the slice above that threshold is taxed at 42 percent. From €277,826 of taxable income the rate rises to 45 percent, the so-called wealth tax rate.

Question 5

How does the splitting tariff for married couples work?

Accepted Answer

Under § 32a(5) EStG the couple's combined taxable income is halved, the ordinary single tariff is applied to that half, and the resulting tax is doubled. Because the tariff is progressive, this lowers the tax whenever the partners earn different amounts: part of the higher income notionally slides into the lower tariff zones of the other. If both earn exactly the same, the splitting advantage is zero. The maximum advantage occurs for a single-earner couple with a very high income and reaches several thousand euros a year.

Question 6

Who still pays the solidarity surcharge in 2026?

Accepted Answer

In 2026 the solidarity surcharge only falls due once the assessed income tax exceeds €20,350 under single assessment or €40,700 under joint assessment (§ 3(3) SolZG). Under single assessment that corresponds roughly to taxable income from about €75,000. Just above the threshold the transition zone applies: the surcharge may not exceed 11.9 percent of the excess amount and therefore grows slowly until the regular 5.5 percent rate is reached. On investment income under the flat tax and on corporation tax the soli continues to apply unchanged.

Question 7

How is church tax calculated?

Accepted Answer

Church tax is a surcharge on income tax: 8 percent in Baden-Württemberg and Bavaria, 9 percent in all other federal states. The base is the assessed income tax, not income itself. On €10,000 of income tax that is €800 or €900 respectively. Church tax paid is deductible as a special expense in the following year, which lowers the effective burden somewhat. Anyone not belonging to a tax-collecting religious community pays none.

Question 8

Why does the result differ from my tax assessment?

Accepted Answer

This calculator applies the § 32a EStG tariff to the income you enter. Your assessment additionally reflects many individual items: child allowances and the comparison against child benefit, the progression proviso on parental, sick or unemployment benefits, extraordinary burdens, loss carry-forwards, tax reductions for tradesperson services, and wage tax and prepayments already made. Use the result as orientation and for planning — only the assessment from your tax office is binding.

Guide: Income Tax Calculator

Calculating German Income Tax 2026: Tariff, Zones and Allowances

Basic Allowance 2026: How Much Stays Tax-Free?

The Splitting Tariff: How Much Married Couples Really Save

Marginal vs. Average Tax Rate — the Most Important Difference

Solidarity Surcharge: Who Still Pays It in 2026

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