Our Calculation Methodology
Transparency matters to us. Here we explain how our calculators work and which official sources our calculations are based on.
1. Income Tax Calculation
We calculate income tax according to § 32a EStG (German Income Tax Act). The 2026 tax tariff provides for the following zones:
| Zone | Taxable Income | Tax Rate |
|---|---|---|
| Basic tax-free allowance | €0 – €12,348 | 0% |
| Progression zone 1 | €12,349 – €17,799 | 14% – 24% |
| Progression zone 2 | €17,800 – €69,878 | 24% – 42% |
| Proportional zone | €69,879 – €277,825 | 42% |
| Top tax rate ("Reichensteuer") | from €277,826 | 45% |
Source: § 32a EStG - Income Tax Tariff
2. Social Security Contributions
Social security contributions are calculated based on the current contribution rates and contribution assessment ceilings for 2026:
| Insurance | Contribution Rate (Employee Share) | Ceiling/Month |
|---|---|---|
| Health Insurance | 7.3% + supplementary contribution (avg. 2.9% ÷ 2) | €5,812.50 |
| Long-Term Care Insurance | 1.8% (+ 0.6% childless) | €5,812.50 |
| Pension Insurance | 9.3% | €8,450 (nationwide) |
| Unemployment Insurance | 1.3% | €8,450 (nationwide) |
3. Payroll Tax Program (PAP)
For calculating payroll tax, we use the official Programmablaufplan (PAP) of the Federal Ministry of Finance. This is the same algorithm used by employers and payroll software.
- Coverage of all tax brackets (1-6)
- Child tax allowances and other allowances
- Church tax rates by federal state
- Solidarity surcharge with mitigation zone
Source: BMF Payroll Tax Program 2026
4. Privacy & Client-Side
All calculations take place 100% in your browser. Your salary data is never transmitted to our servers.
- No cookies for the calculation
- No storage of your inputs
- No sharing with third parties
- GDPR-compliant, no cookie banner
5. Timeliness
We update our calculators annually at the turn of the year, as soon as the new values are published by the legislator.
Current as of: July 2026
Despite careful review, we cannot guarantee the accuracy of the calculations. Our calculators do not replace professional tax advice. More on our disclaimer