Every deduction on a German payslip, explained in English
A German payslip (Gehaltsabrechnung) can list seven deductions between gross and net. Here is what each one is, the 2026 rates, and which ones you can influence.
Taxes
Lohnsteuer is withheld income tax, computed by an algorithm the Finance Ministry publishes each year. The first €12,348 a year is tax-free; above it, rates rise progressively from 14% to 42% (45% at very high incomes). Solidaritätszuschlag (5.5% of the wage tax) only applies above a high exemption; in class I it starts at about €7,700 gross a month, so most employees pay zero. Kirchensteuer (8-9% of wage tax) applies only to registered church members; leaving the church at the Standesamt/Amtsgericht ends it.
The four social insurances (your half, 2026)
| Insurance | Your share | Monthly income ceiling |
|---|---|---|
| Health (Krankenversicherung) | 7.3% + half your insurer's surcharge (avg. 1.45%) | €5,812.50 |
| Long-term care (Pflegeversicherung) | 1.8% (+0.6% if childless and 23+; less from the second child under 25, up to the fifth) | €5,812.50 |
| Pension (Rentenversicherung) | 9.3% | €8,450.00 |
| Unemployment (Arbeitslosenversicherung) | 1.3% | €8,450.00 |
Your employer pays about the same again on top of your gross. Income above each ceiling is contribution-free, which is why the overall deduction rate falls again at high salaries.
What you can actually influence
- Your Krankenkasse: surcharges differ between insurers. At €4,000 gross in class I, a surcharge two points lower (1.9% instead of 3.9%) leaves about €27.75 more net pay a month.
- Tax class: for married couples, see tax classes explained.
- Company pension (bAV): converting salary reduces taxes and contributions now, in exchange for taxed benefits later.
Check your own numbers
Run your salary through the Germany salary calculator, it uses the official 2026 algorithm and shows every line above, or jump straight to a breakdown like €60,000 after tax.
Frequently Asked Questions
Does everyone in Germany pay the solidarity surcharge (Solidaritätszuschlag)?
No, since 2021 the surcharge only applies at higher income levels; most employees pay zero.
What is the income ceiling for pension contributions in Germany?
In 2026, pension contributions apply only up to €8,450 gross per month; income above that ceiling is contribution-free.
Can I choose my own health insurer (Krankenkasse) in Germany?
Yes, most employees can switch Krankenkasse; surcharges differ between insurers, and a lower surcharge directly raises your net pay.
Sources: § 32a EStG; SV-Rechengrößenverordnung 2026. Last updated 2026-11-04. Also available in German.