Germany Income Tax Rates for 2024

Germany Income Tax Brackets

Germany has a bracketed income tax system with four income tax brackets, ranging from a low of 0.00% for those earning under €8,005 to a high of 45.00% for those earning more then €250,730 a year.

How does the Germany Income Tax compare to the rest of the world?

The maximum income tax rate in Germany of 45.00% ranks Germany as one of the ten highest taxed countries in the world. Countries with similar tax brackets include Portugal with a maximum tax bracket of 46.00%, Belgium with a maximum tax bracket of 50.00% and Austria with a maximum tax bracket of 50.00%. Keep in mind that our ranking measures only nationwide income taxes, and does not account for local income taxes at state, province, or municipal levels.

Maximum Income Tax	Income Tax Allowance	World Tax Rank
45.00%	€0 ($0 USD)	6th of 34

What is the Germany Income Tax?

Germany's personal income tax is a bracketed income tax that must be paid yearly by all citizens to the government of Germany. Failure to pay, or underpayment of, the Germany income tax can result in high fees, fines, or jail time.

In addition to Germany's income tax, other taxes may apply to wages or profits earned, including social services, medical care, and capital gains taxes.

Germany Income Tax Allowance

Germany provides most taxpayers with an income tax allowance of €0, which can be kept as a tax-free personal allowance. Germany's tax credit is a

A tax credit is a fixed amount of money that may be kept by taxpayers without paying any income taxes. Generally, a tax credit is subtracted from your gross income before your taxable income is calculated.