Tax Structure 

Social security payments (Krankenversicherung, Rentenversicherung, Pflegeversicherung and Arbeitslosenversicherung)

These payments are normally split 50 percent to 50 percent between you and your employer. Your portion of the contributions will be deducted from your pay and given to the appropriate organizations. Up to a certain ceiling, your total social security contribution will typically be between 20 and 22 percent of your annual salary.

Benefits in kind (geldweter Vorteil) 

Anything considered a "benefit in kind"—that is, perks or benefits you receive from your company, like the use of a car—may also be subject to taxation. Taxes on company vehicles are 1% of the vehicle's list price, including VAT. Taxes apply to shares received as gifts or bonuses as well.

Solidarity surcharge (solidaritätzuschlag)

Often called "Soli".  All individuals who make more than €972 per year must furthermore pay a Solidarity Tax (Solidaritätszuschlag) payment of up to 5.5%, which is again removed at source from the wages. This tax was introduced in 1991 to rebuild and invest in Eastern Germany after reunification. It is still in place to help finance the ongoing costs associated with a unified Germany. The "Soli threshold" for income tax has been significantly raised as of January 2021, thereby eliminating the surcharge for 90% of taxpayers. Only those who are single and make a gross annual income of 62.603 euros or more are required to pay it. 

Church tax (Kirchensteuer)

is a tax paid by each registered Christian or Jewish member of the congregation. It is normally deducted at source along with income tax and social security payments from the gross salary. Currently, It is currently 8% in Bavaria and Baden-Württemberg and 9% in all other federal states. It is not required to pay church tax if you have no declared religion.

Business taxes

The Federal Central Tax Office assesses taxes on business income in addition to conventional income taxes. The size of the company and annual turnover determine whether and how much VAT and corporate tax you must pay. A competent accountant or financial advisor is crucial if you're considering opening your own business in Germany to ensure that you pay the proper taxes.

TV and Radio tax (Rundfunkbeitrag)

Since 2013, regardless of whether you own a TV or a radio, every household in Germany is forced to pay the TV and radio licence fee (Rundfunkbeitrag). This is justified by the fact that you can still access stuff in the modern world via a computer or a phone. You will almost certainly get a letter from the Beitragsservice seeking payment as soon as you register your address in Germany. No matter how many people live there, the monthly cost (as of 2022) is 18,36 euros per household. If you receive benefits, are disabled, or are a student, you can be qualified for exemption from payments or reduced ones. 

Motor vehicle tax (Kraftfahrzeugsteuer)

If you possess an automobile, you will be subject to this type of tax. Fuel type and engine size affect the tax. Taxes for vehicles that were first registered before to June 30, 2009 are based on their emission class. After that date, the taxation of vehicles is dependent on their carbon dioxide emissions.

Dog tax (Hundesteuer)

In Germany, it is mandatory to register your dog at the local tax office so that it can acquire a tag (Hundemarke) proving you have paid the license. For the first dog, this typically costs between 90 and 150 euros a year. To discourage owners from owning too many pets, the charge is greater for any extra dogs. Both service dogs and other pets are excluded, including guide dogs.

Property sales tax (Grunderwerbssteuer)

If you decide to purchase a home in Germany, you will be required to pay a property sales tax. When a property worth more than 2.500 euros is transferred from one owner to another, this one-time tax is due. The rate ranges from 3,5 to 6,5% of the property's value, depending on the federal state.

Capital and capital gains tax (Abgeltungsteuer)

Income from capital, such as dividends, interest, income from investment funds, and private capital gains, such as sales of shares or ownership interests in corporations, are all subject to this sort of tax. Germany now has a flat capital gains tax of 25%. 

Inheritance and gift tax (Erbschafts-und Schenkungssteuer)

You will be taxed on any assets you receive if you are a German taxpayer or the beneficiary of a German taxpayer. The tax rate varies based on the inheritance's value from 7% to 50%.

Real property tax (Grundsteuer) 

This tax is imposed by municipalities on properties in Germany. The amount of tax payable is calculated on the value of the property and the local tax rate (which varies from 0,26% to 1%)