Tax brackets in Germany
In Germany, there are 6 tax brackets into which employees are classified according to their marital status, earnings and other criteria. We will choose the most advantageous option for you so that you can tax your income in the most advantageous bracket right from the start and avoid surcharges, which can be an unpleasant surprise.
If you work as a foreign national for a German company and are single, you will automatically be placed in tax bracket I, which is unfortunately the most disadvantageous, but you can reclaim the amount of tax withheld from your wages by processing your German tax return under certain conditions.
If you are married, you can apply for tax bracket III, which is already more advantageous than tax bracket I. However, when claiming a tax refund through tax return processing, this is only advantageous if the partner’s income is not too high.
Frequently asked questions
I will have an employment contract with a German company, what bracket will I be placed in?
If you are single, you will be in tax bracket I, which has the highest tax burden.
Can I request a change of tack bracket from I to III?
You can apply for a change from tax bracket I to III if you are married. The application is submitted to the German tax authorities. However, the change is beneficial if your spouse’s income would not be very high, as this income is then included in the calculation for your tax return and in some cases you may still have to pay extra tax in Germany.