Gross vs Net Salary in Germany: What Gets Deducted?
From gross to net: all deductions explained — income tax, solidarity surcharge, and health, pension, care and unemployment insurance.
You've received a job offer for €4,000 gross per month — but how much will actually land in your bank account? In Germany, the gap between gross and net is 30–40% on average. Here's exactly what gets deducted and why.
Gross — What Is It?
Your gross salary is the amount agreed in your employment contract before any deductions. It is the starting point for calculating taxes and social insurance contributions.
Net — What's Left?
Your net salary is what actually arrives in your bank account — after deducting all taxes and social insurance contributions.
The Deductions in Detail
1. Income Tax (Lohnsteuer)
The largest deduction. Income tax depends on your annual income and tax class. Germany uses a progressive tax rate: the more you earn, the higher the rate on each additional euro.
Marginal tax rates 2026:
- Up to €12,084 / year: 0% (basic personal allowance)
- Up to approx. €68,000: 14–42%
- Above €68,000: 42% (top rate)
- Above €277,826: 45% (wealth rate)
Your actual effective tax rate is always lower than the marginal rate, because lower income bands are taxed at lower rates.
2. Solidarity Surcharge (Solidaritätszuschlag)
Since 2021, only for higher earners: 5.5% of income tax. For annual incomes up to approximately €18,130 (tax class 1) it is waived entirely.
3. Church Tax (optional)
Members of a recognised religious community pay additional church tax: 8% of income tax in Bavaria and Baden-Württemberg, 9% in all other states.
You can leave the church to avoid this deduction.
4. Health Insurance (Krankenversicherung)
| | Contribution rate 2026 | |---|---| | General base rate | 14.6% | | Insurer-specific supplementary contribution | avg. ~1.7% | | Total | ~16.3% |
Employee and employer each pay half. Your share is therefore roughly 8.15% of gross (up to the contribution ceiling of €5,512.50/month).
Those with private health insurance (PKV) pay a fixed monthly premium — the employer contributes a subsidy equivalent to half the applicable GKV rate.
5. Pension Insurance (Rentenversicherung)
18.6% of gross, split equally. Your share: 9.3% — again only up to the contribution ceiling (€7,600/month in 2026).
6. Unemployment Insurance (Arbeitslosenversicherung)
2.6% total, your share: 1.3%.
7. Care Insurance (Pflegeversicherung)
Since 2023 income-dependent, scaled by number of children:
| Children | Employee share 2026 | |---|---| | Childless (from age 23) | 2.6% | | 1 child | 2.0% | | 2 children | 1.75% | | 3 children | 1.5% | | 4 children | 1.25% | | 5+ children | 1.0% |
In Saxony, employees pay an additional 0.5% (a historical exception).
Example Calculation: €4,000 Gross, Tax Class 1
| Deduction | Amount | |---|---| | Income tax | approx. €556 | | Solidarity surcharge | €0 | | Health insurance (employee) | approx. €326 | | Pension insurance (employee) | €372 | | Unemployment insurance (employee) | €52 | | Care insurance (employee, childless) | €104 | | Total deductions | approx. €1,410 | | Net salary | approx. €2,590 |
Assumptions: tax class 1, statutory health insurance, average supplementary contribution, no church tax, no children, North Rhine-Westphalia.
For the exact calculation for your own salary, use our Gross-to-Net Calculator — with all your individual parameters such as federal state, health insurance type, and number of children.
What Does the Employer Pay on Top?
In addition to your gross salary, your employer also pays their share of health, pension, care and unemployment insurance — roughly 20% extra. For a gross salary of €4,000, your employer's total cost is therefore around €4,800 per month.
See the exact amount in our Employer Cost Calculator.