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comparing tax in germany with united states

GermanyUnited StatesDifference in United States
Gross Income 35,038.86 EUR / 30,000.00 GBP 38,722.50 USD / 30,000.00 GBP - 0.00 GBP
Tax Due 10,052.25 EUR / 8,606.66 GBP 5,974.97 USD / 4,629.07 GBP - 3,977.59 GBP
Net Income 24,986.61 EUR / 21,393.34 GBP 32,747.53 USD / 25,370.93 GBP + 3,977.59 GBP
Overall Tax Rate 28.7 % 15.4 % - 13.30 %.

Figures based upon 1 EUR = 0.85619224 GBP.

Figures based upon 1 USD = 0.77474337 GBP.

In Germany, an income of 35,038.86 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 18,900.00 EUR / 16,182.03 GBP and less than the country's average income of 43,000.00 EUR / 36,816.27 GBP.

In United States, an income of 38,722.50 USD / 30,000.00 GBP is more than the lowest average advertised salary of 24,694.00 USD / 19,131.51 GBP and less than the country's average income of 60,000.00 USD / 46,484.60 GBP.

Here are how much some common purchases cost in Germany vs United States:

GermanyUnited StatesDifference in United States
Water Bottle (1.5L) 0.34 EUR / 0.29 GBP 1.75 USD / 1.36 GBP + 1.07 GBP
Milk Bottle (1L) 0.70 EUR / 0.60 GBP 0.82 USD / 0.64 GBP + 0.04 GBP
Pint of Beer 3.50 EUR / 3.00 GBP 4.00 USD / 3.10 GBP + 0.10 GBP
Bread (500g) 1.30 EUR / 1.11 GBP 2.58 USD / 2.00 GBP + 0.89 GBP
Chicken Breasts (1kg) 7.34 EUR / 6.28 GBP 8.48 USD / 6.57 GBP + 0.29 GBP
Petrol UK Gallon 6.36 EUR / 5.45 GBP 3.27 USD / 2.53 GBP - 2.91 GBP
Volkswagen Golf or Equivalent 20,000.00 EUR / 17,123.84 GBP 21,845.00 USD / 16,924.27 GBP - 199.57 GBP
Broadband Internet Monthly 30.14 EUR / 25.81 GBP 62.44 USD / 48.37 GBP + 22.56 GBP
Rent One Bedroom Apt. In City (Monthly) 702.47 EUR / 601.45 GBP 1,261.46 USD / 977.31 GBP + 375.86 GBP
Purchase One Bedroom Apt. In City 167,807.15 EUR / 143,675.18 GBP 89,561.15 USD / 69,386.91 GBP - 74,288.27 GBP

Part of Europe, Germany covers an area of 348,621 square kilometers.

Germany has a Gross Domestic Product (PPP) of 3,979.08 ($ Billion) from a population of 80,636,124.

A progressive tax system spread over 5 bands ranging from 0% to 45%.

Tax bands are as follow:

Below 9168 EUR - 0%

Between 9168 EUR and 55960 EUR - 14%.

Between 55960 EUR and 265326 EUR - 42%.

Above 265326 EUR - 45%.

There is also a solidarity tax surcharge rate of 5.5%.

A default deduction is allowed of 1,000 EUR for work-related expenses.

A tax allowance of 1,000 EUR is applied for employees.

Up to 4,500 maximum is allowed as a deduction for travel expenses to and from work - here we use 2,500 EUR.

Social contributions made by the employee are : Pension 9.35%, Unemployment 1.5%, Health 7.9% and Nursing 1.4%.

These contributions are made as a percentage of the entire gross wage - limited to 52,200 EUR (Health and Nursing) and 76,200 (All Other - West Germany).

Source: http://www.bundesfinanzministerium.de/Web/EN/Issues/Taxation/taxation.html.

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

Part of North America, United States covers an area of 9,144,930 square kilometers.

United States has a Gross Domestic Product (PPP) of 18,561.93 ($ Billion) from a population of 326,474,013.

A progressive tax system spread over 7 bands ranging from 0% to 37%.

2019 Tax bands are as follow:

Below 9700 USD - 10%

Between 9700 USD and 39475 USD - 12%.

Between 39475 USD and 84200 USD - 22%.

Between 84200 USD and 160725 USD - 24%.

Between 160725 USD and 204100 USD - 32%.

Between 204100 USD and 510300 USD - 35%.

Above 510300 USD - 37%.

The standard single person's deduction is 12,200 USD and the personal exemption is now 0 USD (2019). The Tax Cuts and Jobs Act of 2017 reduced personal exemptions to zero for tax years 2018 through 2025.

The PEP provision (personal exemption phaseout) tapers the personal exemption when income is over 261,500 USD. 2% reduction for every 2,500 USD over the limit.

Social security tax is 6.2% on up to 132,900 USD of gross income (2019).

Medicare hospital insurance tax is 1.45% of all gross income - increased to 2.35% on income over 200,000 USD (single person).

Source: https://www.irs.gov/tax-professionals/tax-code-regulations-and-official-guidance.

Source: XE.com (Currency Conversion).

Source: SalaryExplorer.com (Averages from average salaries in major job categories).

Source: Numbeo.com (Cost of living).

Help

This calculator allows you to calculate income taxes and social contributions equivalent for Germany and United States and allow comparison between both. You can choose the preferred currency for the input amounts and displayed calculation. For example: If you choose GBP as your preferred currency, then the income entered will be converted to Germany's and United States's native currencies for the calculation so that correct income equivalent is used. The results will then be shown in the native currencies and GBP.

How we compare world taxes

We have trawled through the quagmire of tax legislation for 16 of the World's major economies and created a comparable position as close to the UK's PAYE (Pay As You Earn) system for employed people.

We look at each country's taxation for employed people, as well as things like medical care which are part of social contributions for some countries or require mandatory purchase of health insurance.

Combining this information lets us calculate taxes for each of the 16 countries and then do not only a taxation comparison but also a comparison of buying power based upon commonly purchased items.

It is quick and easy to use and you can get a detailed result at the click/tap of a button!

Compare tax using these examples:

We currently support the following countries - by clicking on the links below you can just do an individual tax calculation for those countries - or scroll up and compare tax between two countries directly!

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