Your German payslip explained: taxes and deductions in 2026

2 min read · 8 steps · Updated 2 October 2026

The gap between the gross salary in your contract (Brutto) and the money in your account (Netto) surprises most newcomers. The payslip (Gehaltsabrechnung or Lohnabrechnung) lists every deduction. These are the lines you will find on it.

Rules, amounts and deadlines change. Check the official source named at the end before you act, and ask the office in your city, because procedures differ from town to town.

Step by step

1. Pension insurance (RV)

   The rate is 18.6 percent of gross pay. You pay half, 9.3 percent, and your employer pays the other half. The months count towards a later pension and towards a settlement permit.

   Done

2. Health insurance (KV)

   The general rate is 14.6 percent plus an additional contribution that each insurer sets itself. The average in 2026 is 2.9 percent. You and the employer share the total, so your part is about 8.75 percent.

   Done

3. Long-term care insurance (PV)

   The rate is 3.6 percent, shared equally, so 1.8 percent for you. Employees over 23 without children pay 0.6 percent extra, 2.4 percent in total. From the second child the employee's share falls by 0.25 points per child under 25.

   Done

4. Unemployment insurance (AV)

   The rate is 2.6 percent, 1.3 percent for you. It is the basis for unemployment benefit later.

   Done

5. Wage tax (Lohnsteuer)

   Income tax is taken from your pay every month. Income up to the basic allowance, 12,348 euros a year in 2026, is tax-free. Above that the rate rises step by step from 14 to 42 percent, and 45 percent for very high incomes.

   Done

6. Your tax class (Steuerklasse)

   Class I: single, divorced or widowed. Class II: single parents. Class IV: married couples as standard. Classes III and V: married couples where one earns much more, chosen as a pair. Class VI: a second job. The class changes the monthly deduction. The tax for the whole year is settled in the tax return.

   Done

7. Church tax and solidarity surcharge

   Church tax (KiSt) is 8 percent of your wage tax in Bavaria and Baden-Württemberg and 9 percent elsewhere. You pay it only if you are registered as a member of a church that collects it. The solidarity surcharge (SolZ) is now paid only on high incomes.

   Done

8. Check the personal details

   At the top are your tax ID, social security number, tax class, number of child allowances, religion and health insurer. A wrong tax class or a missing tax ID makes the deduction too high. Tell the payroll office.

   Done

Good to know

Pay is capped for the calculation: above a ceiling (in 2026, 5,812.50 euros a month for health and care insurance) no further contributions are due.

The employer pays accident insurance alone. It does not appear as a deduction.

With a mini-job up to 603 euros a month you pay no health, care or unemployment contributions. See minimum wage and mini-jobs in Germany in 2026.

Without a tax ID the employer must use class VI at first, and you get the excess back later. See how to get your German tax ID and tax return in Germany: who has to file and how to do it.

For a rough net figure, search for a Brutto-Netto-Rechner and enter your gross pay, tax class and state.

In short: Pension 9.3, health about 8.75, care 1.8 or 2.4, unemployment 1.3 percent, then wage tax by tax class, church tax only for members.