Taxes to be paid as a foreign worker in Germany

As an employee in Germany, you will be subject to pay taxes, equally to German employees. The key tax that employees pay in Germany is the income tax.

There are several aspects you should know about paying taxes and other fees as an employee in Germany: 

1. If employed in a company, the company takes care paying your taxes at the tax office from the deducting your gross salary.

2. The company takes care also paying on your behalf your “solidarity tax”, “church tax”.

3. The company, on your behalf, pays your pension, health insurance, and unemployment insurance.

4. Starting from 2014 subject to income tax are salaries higher than 354€.

5. Tax rates are 14% at the minimum, up to 45% for higher salaries (for annual salaries 250.730 euros for individuals with single status and 501.460 euros for married individuals.

6. Solidarity tax height is 5.5 % of the amount of your income tax.

7. Church tax height varies as they are set by religious groups. However, this tax can be 8%, 9% or more of the amount of your income tax.

8. There are tax reliefs for lone parents and families divided into 6 categories.

9. You pay your income tax on a monthly basis. However, you can require from the government information if you paid more income taxes than ought to and if eligible you will be refunded. This requirement is submitted in a form of income tax declaration.

Source of this information:

http://www.germany-visa.org/working-germany-getting-german-work-permit/