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Hire and pay talents
with Horizons in
180+ countries
The corporate tax rate in Germany is 15%, but additional charges such as a solidarity surcharge and trade tax make the total level of contribution around 30%.
Horizons’ Germany Employer of Record & PEO can provide assistance to your business as you navigate the complicated tax laws in the country.
Germany has a progressive tax rate system for workers. The average employee tax rate in Germany ranges from 0% to 45% based on income level.
| Taxable Income (EUR) | Tax rate 2023 |
|---|---|
| 0 – 10.908 | 0% |
| 10.909 – 62.809 | 14% – 42% |
| 62.810 – 277.825 | 42% |
| 277.826 + | 45% |
Employer contributions in Germany can reach around 19% of the employee’s salary.
A typical breakdown of employer contributions is:
| Contribution item | Contribution rate |
|---|---|
| Pension Insurance | 9.3% |
| Unemployment Insurance | 1.2% |
| Health Insurance | 7.3% |
| Long-term Care Insurance | 1.5% |
Employee contributions in Germany can reach around 19% of the salary. And they are the same as the employer contributions
A typical breakdown of employee contributions is:
| Contribution item | Contribution rate |
|---|---|
| Pension Insurance | 9.3% |
| Unemployment Insurance | 1.2% |
| Health Insurance | 7.3% |
| Long-term Care Insurance | 1.5% |
Hire borderless talent with Horizons
Your business can easily hire employees in Germany without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.
The Tax Info Center (Steuerliches Info-Center – SIC) at the Federal Central Tax Office (Bundeszentralamt fur Steuern – BZSt) is the entity that provides tax information and works as the tax bureau of Germany.
In Germany, the payroll tax is called solidarity tax, and this is 5.5% of the employee’s salary.
Payroll tax in Germany is tax that comes out of the employee’s salary every pay check. The employer will withhold the correct amount on behalf of the employee.
Germany has a progressive tax rate system, meaning the more income someone makes, the more they will be taxed. In Germany the tax rate for employees Is between 0% and 45%.
Germany – Individual Income Tax
