Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Income tax 2026: refund or amount owed
The wage tax (Lohnsteuer) your employer withholds each month is only a prepayment. What you actually owe is settled by the annual assessment (Veranlagung). This page works through the annual chain of § 2 EStG and compares the result with what has already been paid over.
Expected amount due
8,08 €
Withheld 7.801,92 € · assessed 7.810,00 €
| Gross wages | 54.000,00 € | § 19 EStG |
|---|---|---|
| Employee standard deduction | −1.230,00 € | § 9a EStG |
| Total of income items | 52.770,00 € | § 2 Abs. 3 EStG |
| Special expenses standard deduction | −36,00 € | § 10c EStG |
| Pension and insurance contributions | −10.854,00 € | § 10 EStG |
| Income | 41.880,00 € | § 2 Abs. 4 EStG |
| Taxable income | 41.880,00 € | § 2 Abs. 5 EStG |
| Income tax | 7.810,00 € | § 32a EStG |
|---|---|---|
| Solidarity surcharge | 0,00 € | below the exemption limit of 20.350,00 € |
| Total assessed | 7.810,00 € |
What this calculation does not include
The omissions work in both directions. Each item therefore says whether it makes the tax shown here rather too high or rather too low.
- Pension and insurance contributions are estimated from the gross wage (employee shares of pension, health and long-term care insurance, the health contribution reduced by 4 %) or taken as the amount you enter. Amounts you enter are not run through the ceiling calculation of § 10 (3) and (4) EStG — that would need a breakdown by type of insurance, which is not collected here. If you enter more than is deductible, the tax shown here is too low.
- The same applies to extraordinary burdens; the reasonable own contribution under § 33 (3) EStG is not yet deducted. This makes the tax shown rather too low.
- Tax reductions under §§ 35, 35a EStG (trade tax credit, tradesmen's services) are not taken into account. This makes the tax shown rather too high.
- The single-parent relief is applied for the whole year. The monthly pro-rating (§ 24b (4) EStG) is missing: if the conditions were not met in every month, the tax shown here is too low.
- The more-favourable test compares the allowances of ALL children together with the total child benefit. The tax office tests child by child, starting with the eldest. With several children the tax can therefore come out a few dozen euros too high in a narrow income band — just where the allowances start to become more favourable.
- The age relief amount (§ 24a) and the pension allowance (§ 19 (2)) are missing; the calculation assumes pay from active employment. If you are entitled to them, the tax shown here is too high.
- Church tax capping is not calculated — the capping rates cannot be substantiated reliably. For very high incomes this makes the church tax shown rather too high.
Terms used on this page
Each term has its own page with a plain-language explanation, the technical detail and a worked example.
- Annual gross wage (Bruttoarbeitslohn im Jahr) — The total wage for a calendar year, as shown in line 3 of the wage tax certificate (Lohnsteuerbescheinigung).
- Child allowance count (Kinderfreibeträge) — A figure from the ELStAM records; it does not reduce the wage tax itself, only the solidarity surcharge and church tax.
- Employment expenses (Werbungskosten) — Expenditure incurred to earn, secure and maintain your wage — commuting, training, work equipment and the like.
- Income splitting for spouses (Splittingverfahren) — Jointly assessed spouses are taxed on half of their combined income — and pay twice the tax on it.
- Minijob (marginal employment) — Employment up to 603 € a month: almost free of tax and contributions for employees; the employer pays flat rates.
- More-favourable test (Günstigerprüfung) — Child benefit or child allowances: the tax office takes whichever is better of its own motion, never both.
- Pension and insurance contributions (Vorsorgeaufwendungen) — Contributions to old-age, health, long-term care and unemployment insurance, deductible as special expenses.
- Progression clause (Progressionsvorbehalt) — Wage replacement benefits are themselves tax free, but they raise the rate applied to the rest of your income.
- Second job (Nebentätigkeit) — A second job is taxed in tax class 6 — the wage tax withheld there is only a prepayment.
- Single-parent relief (Entlastungsbetrag für Alleinerziehende) — An allowance of 4.260 € a year for single parents, plus 240 € for each further child.
- Solidarity surcharge (Solidaritätszuschlag) — A 5,5 % surcharge on income or wage tax; since 2021 only high incomes pay it.
- Trade tax multiplier (Gewerbesteuer-Hebesatz) — The percentage by which your municipality multiplies the tax base amount.
How the figures are calculated
From gross wages to taxable income
The annual calculation follows the order of the statute: gross wages minus employment expenses (at least the standard deduction under § 9a EStG) gives the income, minus special expenses and extraordinary burdens gives the total income, and from that the taxable income under § 2 (5) EStG. Only then is the tax scale applied.
The comparison with the wage tax withheld decides refund or payment
The employer withholds wage tax on a monthly scheme that only approximates the yearly picture. At the end of the year the actual tax is assessed and compared with what was withheld. The difference is the refund — or the amount due.
Child allowance or child benefit: the more-favourable test
The tax office calculates both and applies whichever is better for you (§ 31 EStG). Where child allowances are recorded, the calculator states which option won and by how much.
Example: 54.000 € gross wages for the year, nothing special to deduct
| Gross wages | 54.000,00 € |
|---|---|
| − Employee standard deduction (§ 9a) | 1.230,00 € |
| − Special expenses standard deduction (§ 10c) | 36,00 € |
| − Pension and insurance contributions (§ 10), estimated from the wage | 10.854,00 € |
| = Taxable income | 41.880,00 € |
| Income tax (§ 32a) | 7.810,00 € |
| Wage tax withheld over the year (tax class I) | 7.801,92 € |
Withheld and owed differ by just 8,08 €: if you have nothing special to deduct, you get roughly nothing back — wage tax withholding is designed to hit exactly that. A refund only arises from what the employer does not know: work-related expenses above 1.230 €, special expenses, extraordinary burdens. The solidarity surcharge here is 0,00 € — the tax assessed is below the exemption limit of 20.350 €.
What this calculator does not cover
Pretending to be complete is the costliest mistake a financial calculator can make. These points are deliberately absent — either because they need details this page does not ask for, or because they cannot be substantiated in general terms:
- Pension and insurance contributions outside the payslip — Riester, Rürup, private supplementary insurance. The estimate knows only the employee shares of pension, health and long-term care insurance (the health contribution reduced by 4 %, § 10 (1) no. 3 EStG) and applies the ceiling for other contributions under § 10 (4) EStG. If you have more, enter the amount by hand.
- Tax reductions under § 35 EStG (trade tax) and § 35a EStG (tradesmen's services, household services).
- Foreign income and double taxation treaties (§ 32b (1) sentence 1 nos. 2 to 5).
Related calculators
- Gross to net per month — what the employer withholds each month
- For the self-employed — the same assessment, but with profit instead of wages
- Choice of tax class — which combination costs a married couple least