The existence of this channel is truly a blessing for us expats in Germany. Thank you for the great content! 👍🏻
@mikewebber7553
5 ай бұрын
It's a pity this in completely untrue !
@XY-uc1tw
Жыл бұрын
in short, Germany is great country if you do not earn much money and even gathering social benefits from state. Germany is not that great, if you are hard worker and earn little bit much money....
@arnodobler1096
Жыл бұрын
As long as you are young, healthy, childless, there are better countries, but...
@traceymarshall5886
10 ай бұрын
The exact same in ireland (in fact id say most of the EU follows this)
@thorstenschmidt21
4 ай бұрын
So it is great for people who do not earn much money, but bad for people who do not earn much money? 😂
@ytano5782
4 ай бұрын
There are better options, if you can pay everything by your own, in every life situation. This is the case, if you are not depending on your income and if you are able to life from your net worth.
@christinehorsley
3 ай бұрын
I disagree … I earned a little bit more than the average German, around 70 K gross in my final years, I was always a “hard worker” (retired now) and that was more than I would have earned in my job in the USA (my income went up immediately when I returned to Germany), and I feel I was treated well in Germany and have had a good life. What many foreigners proclaim to be “high taxes”, is actually the share of social security payments also deducted from the gross pay: health insurance, long term care insurance, retirement, unemployment. AND I NEVER MINDED PAYING SUCH HIGH SOCIAL SECURITY PAYMENTS, and was “freiwillig” insured in the GKV (Gesetzliche Krankenversicherung) for the last 15 years. PS: Together with my husband, who was a worker with on site training, no formal job education (Ausbildung) and therefore earned much less, our final income tax mostly came out to around 21 to 23 percent, after all deductions.
@aleterra
Жыл бұрын
No, it is actually more., I get taken like 43% out of my salary. And also a high VAT on everything you buy.
@simplegermany
Жыл бұрын
As we mention in the video, wage tax is part of the deductions. The rest are social contributions. VAT varies from country to country. Germany is in the middle compared to other EU countries. It’s always a matter of what you’re comparing it to.
@Micha-bp5om
Жыл бұрын
Exactly… I also get taken exactly 43%, it is a theft. Just paying over 900€ montly for basic health insurance is outrageous
@cineffect
7 ай бұрын
@@Micha-bp5om Come to Florida, beats Germany in every sense.
@Micha-bp5om
7 ай бұрын
@@cineffect I would love to but I am afraid to move alone :( already did the step to move to Germany and now kinda find it comfortable, despite the huge taxes.
@arkocazan
Жыл бұрын
I am sorry, what? My paycheck has ~10k brutto, and my netto is hardly 5k every single month. Why now sugar coating the reality? Lets use the facts, yes perhaps it is not named “income tax”, but what matters me and everyone else is how much of net you receive…
@simplegermany
Жыл бұрын
It depends. Net of course is important, but what needs to be taken into account is what you need to use that net for. Do you still need to pay health insurance from it, do you need to build a cushion in case of unemployment, do you still need to pay for schooling for your kids, etc. The system in Germany is definitely not for everyone. Our goal is to educate and help those that want to move or are in Germany to understand how things work and feel empowered.
@Fani.Christie
Жыл бұрын
@@simplegermany The perfect reply to every other pal at table conversations about my moving. 😉 Thank you! That is right and need only be understood once and for all.
@markusfeljofsen8345
Жыл бұрын
Your vibe is really good. I like just listening as it feels rare to me that influencers actually are sharing energy, which is what you really do. Keep the good vibes coming. I would listen to pretty any topic you would cover.
@simplegermany
Жыл бұрын
Wow - thank you for your kind words! 🤩
@Micha-bp5om
Жыл бұрын
I don’t pay 42% income tax, but the total deducted from my income is 43% and don’t even pay curch tax, otherwise it would have been higher. 🤢
@Streleny
9 ай бұрын
Yes ,ladies are funny
@nothing-p6l9l
7 ай бұрын
Hey 👋 I'm coming to Germany for my Masters, is it really worth it, and can I save money in Germany
@landwirtschaft2116
6 ай бұрын
@@nothing-p6l9l save money??? haha you must be delusional to think that lmao
@puneethy8316
4 ай бұрын
@@nothing-p6l9l same here
@arionfar
Жыл бұрын
An example of good content! No clickbait, no nonsense intro or useless info. You guys should do podcasts sometime.
@garrett7101
Жыл бұрын
At the same income level the US is at 22% all the way up to over $90k income per year vs Germany at 42%.. both progressive. My health insurance is $49.95/month in the US. Inheritance tax (for me) in Germany would be 11% vs 0% in the US. Capital gains tax would be 15% in the US and 25% in Germany (on money I made off selling a US property!) My GF lives in Germany, but we will continue to be a 6 month a year couple due to the expenses re: living in Germany.
@JustGrownUp
Жыл бұрын
Hi Jen, Yvonne, I am moving to Germany from the UK in about month. I stumbled onto your channel as I was searching information about taxes. You guys are super clear and the content is so helpful to me. I will BINGE your channel within the next few days/weeks. Thanks a million, and keep it up!
@tolerious
Ай бұрын
I'm from China and after the first time I watched a video from this channel I just subscribe it in no time. So many helpful videos here, really appreciate it! Thank you so much!❤❤❤
@LatifaSharifi-j1g
Жыл бұрын
I was really disappointed that I am paying a lot of taxes here in Germany. But that cleared it out. Im dont get 35 percent of my salary which means I m paying a lot to social benefits of others. Also, in germany we have so many people enjoying unemployment benifit and doing black work, and also subletting a couple of apartments in Berlin. As a person who have masters degree I am really poor w.r.t them. which shows the system has its own loop holes
@mrmertozturk
Жыл бұрын
A simple brutto netto calculation yields the following result: a single person with no kids and no church tax making 7k a month takes home a net income of 4150 euros. 4150 is 59% of 7000, meaning this person is at an effective tax rate of %41. This is beyond bonkers in my opinion. Anyone making less than 10k a month should have less than 30% effective tax rate. Making 10k a month in Germany doesn't make you wealthy by any means. This system is in full supportive of generational wealth distribution. Example: an expat coming to Germany from a 3rd world country usually has less than 50k total net worth. Depending on the country he/she is coming from, chances are there aren't any inheritance to talk about. However, most german 20-somethings and 30-somethings are potential future millionaires as wealth is passed on from their grandparents to parents and so on. Wanna tax inequality? Tax THAT.
@epazzaia
Жыл бұрын
There is an inheritance tax for that
@Panicradio
Жыл бұрын
Even though I agree with you that tax rates are still high, you forget that for that 41% you basically get free education, free health care system, unemployment insurance, good roads, clean air (unless you want to live in the middle of a city) and public safety. Regarding generational wealth support: if anything then the German system does really not support that. The inheritance tax is actually really high which varies between 7-50%. See below: Up €75,000 - Tax Class I - 7% | Tax Class II - 15% | Tax Class III - 30% €75,000-€300,000 - Tax Class I - 11% | Tax Class II - 20% | Tax Class III - 30% €300,000-€600,000 - Tax Class I - 15% | Tax Class II - 25% | Tax Class III - 30% €600,000-€6,000,000 - Tax Class I - 19% | Tax Class II - 30% | Tax Class III - 30% €6,000,000-€13,000,000 - Tax Class I - 23% | Tax Class II - 35% | Tax Class III - 50% €13,000,000-€26,000,000 - Tax Class I - 27% | Tax Class II - 40% | Tax Class III - 50% More than €26,000,000 - Tax Class I - 30% | Tax Class II - 43% | Tax Class III - 50%
@mrmertozturk
Жыл бұрын
@@Panicradio I'm aware, and really grateful for all those rights and benefits we have here. I have been working for an American company remotely from Germany. The differences of rights and benefits I have vs my colleagues in the US are lightyears different. I'm not saying that Germany should scrape off it's social benefits and policies in that area. What I'm saying is that it should figure out a way to improve the existing system without punishing it's low and middle class with such high tax rates. Look at Switzerland. Or The Netherlands (and their 30% tax exemption rule). When it comes to social benefits, they are pretty much the same as Germany (if not better) yet the whole system works better there, i.e., less waiting for doctors or appointments at government offices AND less taxes.
@mrmertozturk
Жыл бұрын
@@epazzaia I'm aware :) Do yourself a favor and look up the inheritance tax brackets and corresponding percentages. In order to get taxed 42% for your inheritance, you need to inherit something worth over 20 million :)
@RainerYTufall
Жыл бұрын
In your calculation you mix up insurance payments (pension 'fund', healthcare, care) with the actual income tax which is way lower at roughly 23% with possible deductions thereafter. When comparing with US workers you need to add up the employers' part of the insurances as well. So 7k EUR a month would eventually convert to roughly 8k EUR/Mo.
@MohammedAli-kl6dw
Жыл бұрын
You are some of very few youtubers who are so to the point without exaggerating on anything; presenting things as they are. By the way, I have a suggestion for you to grow your channel; and that is, you should shoot most of your videos outside of your studio at interesting places so that it becomes a bit more real world. At last thank you two for your genuine informations!
@simplegermany
Жыл бұрын
Thanks for your suggestion!
@dfaltin
Жыл бұрын
According to the OECD the total tax burden in Germany is 47.8% for single household average income earners, which is the second highest (after Belgium) in Europe.
@arnodobler1096
Жыл бұрын
And what do people in other countries pay extra? US for example
@derradfahrer5029
Жыл бұрын
That must be marginal tax again. According to dastatis the average (not median) income in 2022 has been 4105€. Using the Salary Calculator from arbeitnow, the netto comes out to 2.635,31€ Giving a total tax (inclusiv health-, pension-, care-, and Unemployment Insurance which are technically not taxes) of 35,8% not 47,8%. And taxes did not increase much from 2022 to 2023, if even at all.
@garrett7101
Жыл бұрын
@@arnodobler1096 I can tell you that in the US the progressive rate is only 22% all the way up to earning over $90k compared to Germany at 42%.
@gargoyle7863
9 ай бұрын
I assume they added mandatory health insurance and social security into it?
@АлишерОрынбек-б8д
6 ай бұрын
@@garrett7101add the state income tax, in many states
@Mesqa3o
Жыл бұрын
This is a bit misleading, even if it’s not called income tax I still pay 43,3 and I’m not making 600k a a year ! What’s matter is the net income, and before starting the conversion about the health insurance or the rent, search it first what you will get from the rent, all of us will be poor if we are just depending on the rent system
@LokeshSolanki9393
Жыл бұрын
I agree with you, the video was confusing and misleading as atlast 42 percent is still deducted if you make 85000 because of health and pension and social contribution.
@Micha-bp5om
Жыл бұрын
Exactly, 43% of my brutto salary is deducted! I only see 57% in my bank account. 😡 and I earn 100k, I get under 5000€ monthly😢
@Felipe-nc7of
Жыл бұрын
Thank you guys. I just moved to Germany and I'm following your tips to guide my journey. Yesterday I went to the Finanzamt because I need my social number with some urgency because I can't wait the 2 weeks until get it via mail. They changed the law (at least here where I live) and you only get the Steueridentifikationsnummer. You will have the Sozialversicherungsnummer when you get your first job. Just want to share it with you. Good luck on the target. Cheersss!
@joannunemaker6332
Жыл бұрын
I really hope you reach your goal of 50,000 subscribers. You have a wonderful channel.😊❤
@simplegermany
Жыл бұрын
Thank you! 😊
@ziad_m_404
Жыл бұрын
I second that
@gustlfaller4494
Жыл бұрын
Correct, BUT: Due to the progression, on every Euro you earn more than 58.597€ (for 2022) you pay 42% income tax. Which is not very motivating and the reason why many expats take Germany only as a means to prepare for the jump across the pond. This is an amout of money which you easily earn with Master degree in engineering with a few years of experience.
@Ron-pm3qk
Жыл бұрын
It's not just income tax rather all other deductions which makes gross to net reduced at 42% or more, things like solidarity surcharge etc - it's a bummer
@musicofnote1
Жыл бұрын
Yeah, solidarity is a bummer. Others should just f@ck the hell off.
@gargoyle7863
9 ай бұрын
I don't understand why they didn't abolished "solidarity surcharge" aka extra tax entirely. It's truly a bummer to have always calculate it into high incomes and capital gains. They simply should make it 43% flat.
@javi87616
Жыл бұрын
Very comprehensive. Keep up the great work. I moved here last year and your content helps a ton! 🙂
@mahiuddinalkamal
Жыл бұрын
Thanks for your detailed analysis, however, If you add it with other social contributions then the net pay is really low in Germany. That's the most frustrating part for an expat I think, specially if your pay goes up so does your social contributions along with wage tax :3
@simplegermany
Жыл бұрын
It all depends on your perspective. We will release another video on that topic in the near future. Not all social contributions go up endlessly, as there is a earning ceiling between 60-88K, so it doesn't blow out of proportion 😉
@mahiuddinalkamal
Жыл бұрын
thanks, would love to see a video on this 🙂
@kibaanazuka332
Жыл бұрын
In understanding taxes, it's also good to compare the cost of living between your home and your new home. In some cases, the taxes will be higher, but you may end up saving money on other expenses in return like healthcare, transportation, groceries, etc.
@DavidReinhardInVertas
Жыл бұрын
True. With a low income you pay high social fees, with a high income you pay high taxes. Above 67k you can choose private health insurance, wich in cheaper in many cases and better treatment. And regarding taxes you can invest in a tax-deductible pension plan to lower your tax burden. Have made videos on both on my channel.
@mahiuddinalkamal
Жыл бұрын
@@simplegermany also, I would really love to see a video on how Germany is doing compared to it's other neighbouring countries in Europe
@muqadar_ali
Жыл бұрын
I always wondered why the numbers mentioned on general forums never matched the actual tax I pay. Great content. Dankeschön 🙏
@mohamediqbal9764
9 ай бұрын
Crystal clear briefing 👌
@MohammadrezaRefaei
Жыл бұрын
Thank you for your time. I really love the way you explain it simply. I'm very lucky to find this channel.😊
@vk118e
Жыл бұрын
Oh my my! Guys this is the best explanation of German tax system, which is very complicated, but they both are awesome. Thanks a ton for this.
@Madoxbeatbox
Жыл бұрын
7:20 OMG with this graph I finally understand this system. By the way, I‘m german, grew up here and am paying taxes for more than 10 years - and still have no clue how this works. 😅
@sxw809
11 ай бұрын
Thanks for sharing this valuable information.
@n4nova
11 ай бұрын
Thank you so much for this wonderful clarification.
@nikhilbhokare3928
Жыл бұрын
Great information. Thanks 😊
@Explore_the_world_now
Жыл бұрын
Excellent video! Thank you for clarifying this in a very complete and simple way!
@CyizaJeanpaul-pn1pl
Жыл бұрын
I love y'all. am learning German going for B1 now.
@oliverzieker8914
Жыл бұрын
The average tax rate and the margin tax rate will never intersect. At 611.000 € the average tax rate is 42 % because the margin tax rate increases to 45 % at around ~278.000 €. 😊
@diegodru
Жыл бұрын
Thanks for another very helpful video, girls.
@CharlyAlemania
Жыл бұрын
Very useful info and clear explanation as always! Danke schön.
@kareemkhateeb4065
Жыл бұрын
it would be nice to see content in regard to family reunion visas and residency permits in Germany, conditions, rules, and work permits, keep up the great job!!!
@michaelevans9392
Жыл бұрын
I actually dug into this last year as I'm a freelancer and I wanted to know ahead of time how much money to save for tax payments. The way you presented it isn't quite right (although for most people it's probably sufficient). The tax rate for earners with over €62,810 is actually 42% for all income above the tax-free allowance of €9,972.98. Of course, this means the overall tax rate is lower than 42%. The annoying thing about the German income tax is that the formula changes depending on which taxable income band you're in. In countries like the UK, the marginal tax rate simply applies above a certain level.
@notroll1279
Жыл бұрын
The trouble about working self employed is that for quite a while (mostly), you weite your invoices and the billed amount plus Umsatzsteuer comes in. Then, after your first Umsatzsteuer- and income tax declarations are due and processed, you're asked to pay income tax for the past year AND make a deposit for income tax for the current year. This really hits those who treat all the cash like theirs to spend... Even if the freelance income is much higher than the last salary, any new freelancer should should restrain his expenses and put most money aside for that very special tax moment...
@DavidReinhardInVertas
Жыл бұрын
Yes, this is more accurate. I also hate the high taxes. On the other hand that means, everything you are able to deduct you get 42% back from the government. I personally and many of my clients invest in a tax-deductible pension plan to lower my taxable income und invest for retirement at the same time. Also I’m in the private health insurance, where I get faster and better treatment and on top the contributions are way lower. Have made a video on both on my channel.
@michaelevans9392
Жыл бұрын
@@DavidReinhardInVertas maybe you can clear this up for me then. I thought pension contributions were 100% deductible, but on the tool that I use for my tax returns, adding e.g. €100 of pension contributions only lowers my taxable income (zu versteuernde Einkommen) by €88. Is it right that only 88% of pension contributions are tax deductible? I haven't found the proper information on the German govt website about this, so at this point I'm not sure.
@mrechbreger
Жыл бұрын
heh, we ignore tax on electricity, fuel, vat, property tax, .. don't buy property in Germany there's another tax. Alcohol is also taxed differently (ya the restaurant needs to pay that). There's also amusement tax and many other taxes and other hidden costs. Let's say 240$ TV charge in Germany / year if you want it or not. Those "taxes" are all paid by entrepreneurs from their own wallet of course for you the brave citizens of Germany :D (don't ask where the entrepreneurs have that money from it's just all of them are rich in Germany and love to pay from their own money for you).
@TheRealJohnMicheal
Жыл бұрын
I love you both so much..!! I catching up on all you videos and just love both of your vibes and genuine personalities..
@alhamdow
Жыл бұрын
thanks for well researched video and great content. I think all other social deductions should be added to the calculations as the employee will never see them. For example, for a 100k salary, a person (taxed according to class 1) will get only 58% of this salary. This means, every single EURO you earn above the 62.8k, you get only 50% of it. This is actually making high earners leaving the country.
@simplegermany
Жыл бұрын
Thanks for your suggestion! A video about that is coming soon ☺️
@maddinek
Жыл бұрын
actually, someone making 100k costs the company already roughly 120k because of taxes and social contributions the employer has to pay. if you also calculate the mwst (vat) and all the million other taxes in germany such as Soli, EEG and so on and so on, as an average guy you pay 39.5% (excluding the business site afaik). if you make more than the average, it gets quickly higher. if you are high income and you lose your job, you want to raise children or whatsoever, you are pretty much screwed with barely any help by the gov. social contributions are basically only for the low income and useless for the others even though the others are contributing heavily to the system the others are taking advantage of. the missing support by the gov and society if you fall as a high tax income person is the reason high income people leave. at least as far as i am aware from my surroundings and myself.
@SophieBednar-d4r
Жыл бұрын
yes i completely agree. Germany is for average people. I try to work hard and I am not far from 100k, but I do not see a reason staying another let's say 5-10 more years. what I get for working hard? nothing - Germany basically taking so much and where are all taxes going 😂 no motivation to get even higher salary here because half of it is gone. then germany is wondering why talented people are not coming
@garrett7101
Жыл бұрын
You're exactly right! Germany is crying for people to move in yet 1.2 million Germans left last year mostly for the US and Switzerland and this is exactly why. Economic opportunity.
@alexandervu6015
Жыл бұрын
In 2020, the top income tax rate in Germany was 45 percent. This tax rate applied to single persons with taxable income of €270,501 or more per year, and to married persons assessed jointly with taxable income of €541,002 or more per year. It is important to note that this is the federal tax, and there may be additional church taxes and other levies on the income if applicable. It should be noted that taxable income in Germany is calculated after deducting certain lump sums and deductible expenses. These include, among others, income-related expenses, special expenses and extraordinary burdens. However, contributions to statutory health insurance and long-term care insurance made by employees are NOT deducted from taxable income. Although these contributions reduce the employee's gross income, they are generally not taken into account to reduce taxes! The minimum health insurance amount would then be about 56,250 euros (contribution assessment ceiling) * 14.6 percent = 8,197.50 euros per year. With a gross annual income of 270,501 euros and assuming a single household in Germany, the deductions could roughly be as follows: 1. income tax: the top tax rate is 45 percent for the portion of income above 270,500 euros. Let us assume that the entire income is taxed at this rate. 270,501 Euro * 0.45 = 121,725.45 Euro income tax 2. health insurance: health insurance contributions may vary depending on the health insurance company and individual situation. Let's assume that it is an average rate of 15 percent of gross income. 270.501 Euro * 0,15 = 40.575,15 Euro Health insurance 3. pension insurance: contributions to pension insurance are usually about 18.6 percent of gross income. 270.501 Euro * 0,186 = 50.398,686 Euro pension insurance 4. solidarity surcharge: in Germany, this currently amounts to 5.5 percent of income tax. 121,725.45 Euro * 0.055 = 6,694.00 Euro solidarity surcharge 5. church tax: depending on the federal state, this amounts to between 8 percent and 9 percent. 270,501 Euro * 0.09 = 24,345.09 Euro church tax The sum of all basic taxes is 243,738.55 Euro. This leaves 26,762.45 euros per year or 2,230.20 euros per month. The monthly net is therefore 2.230,20 Euro.
@anassradi25
Жыл бұрын
A great subject to explain and clarify, especially for a newcomer person who wanting to live in Germany. Keep Up§ . Große Liebe aus Marokko!
@adrianfallas87
10 ай бұрын
Omg guys this content is amazing and a blessing! What a great explanation and beautiful couple. Thank you!
@shivangisingh7265
Жыл бұрын
As always clear, simple and super duper helpful 😊. Thank you Jen & Yvonne 😊
@koschmx
Күн бұрын
The reason people are confused is that social charges are compulsory.
@simplegermany
Күн бұрын
Totally! It’s just important to understand the difference and not generalize 😊
@xXdnerstxleXx
9 ай бұрын
The thing is you pay high taxes quite early. I myself pay 25% and ON TOP there is Social security, Solidaritätszuschlag, Kirchensteuer etc. I pay over 1 third actually. For low income the healthcare part is even bigger than the income tax. That means you basically always loose a minimum of 1 third of your income, now matter how little your income is. Thats really unfair, meaning there is no actual meaningful progressive tax. It should go up much slower, it hasn't kept up with inflation increases.
@mostafaalsabri
Жыл бұрын
Love you guys ❤❤
@datasqlai
Жыл бұрын
Most of the people are just interested in gross income and net income and what ever is the difference is your tax deduction percentage plus social contributions. Who cares about taxable income ? Health insurance is expense And yah pensions which youth is now paying is in dire state and not guaranteed because we never know when pension system bubble will burst out. More people retiring and less people joining the workforce resulting in difference of 400k annually. How long poor govt pay the difference out of pocket ? It is not sustainable
@usernameusernam
Жыл бұрын
Totally agree. You can call it whatever. After all net/gross income ratio matters,which is 38% for 75k gross.
@datasqlai
Жыл бұрын
@@usernameusernam these KZitemrs are pro Germany , biased and always tell good things. There are lot of good and bad things. So they need to tell facts only
@carlosingermany
Жыл бұрын
nice video, thanks for explaining.. very helpful. danke
@anvesh23
Жыл бұрын
Good video, well explained!
@petesmitt
Жыл бұрын
In Australia, you pay no tax on the first $18,200 of your income.
@RainerYTufall
Жыл бұрын
It is about the same amount over here in Germany. Die AUD converts by a rate of just 0,59.
@derradfahrer5029
Жыл бұрын
18,200.00 AUD = 10,847.49 EUR Steuerfreibetrag DE 10,908.00€ You pay more at the moment 😉.
@DeepakSharma-iq4bp
Жыл бұрын
Amazing job ladies!! Keep up the amazing content!!
@georgefarah9214
Жыл бұрын
that's true but if you look in total including "Renteversicherung" and all the other small taxes and social deductions, people making 55-60k a year pay around 40% to the government.. the main problem is not the income tax, it's all of the stuff combined
@sebastianlpoliak
Жыл бұрын
Wow very informative video! Got a better understanding of German taxes that my home country now 😅
@Fani.Christie
Жыл бұрын
Hahaha Can totally relate. 😅 A Masterpiece!!
@lisad7459
Ай бұрын
Just started watching your videos and you are both so cute. Thank you for creating this content.
@antoniolopezlopez4236
4 ай бұрын
Well, i lived in Germany for two years and i can say that i was pay more or less 40% of my income in taxes, health benefits etc... It´s true that i had a high salary, but i still have my payrolls in pdf and overall it´s near to 43%.
@prateekrastogi9134
Жыл бұрын
Hi , I love your videos. They are highly informative and extremely important for people coming from other countries to Germany . I feel your videos deserve a higher audience and especially Indian community , which is ever increasing in Germany . Please let me know if there is a way to connect to you and try to explore the opportunity together . Thanks
@crazy.panda12
11 ай бұрын
By contrast, in Romania you actually pay almost 45% taxes ( ok, to be fair, also social contributions) and in return, we barely have highways and if you end up in a hospital, there's a good chance you'll die of infections or that nobody will take care of you unless you bribe them and the elderly have a measly retirement pay. Unless you are a politician, then of course you get special retirement, for all the good work you did. Oh, Germany, just one more year until I get to move there. You guys do amazing work, keep at it! It has helped me and my partner a lot!
@simplegermany
11 ай бұрын
Thanks for sharing! All the best for your plans to move 😊
@davidoffonly
8 ай бұрын
it is same in turkey too. corrupted governments :(
@landwirtschaft2116
6 ай бұрын
This is a very good point: what do you get for your (tax/contributions) money??? But the thing is… I mean, sure compared to the described Romanian conditions Germany is still much better. But when you compare it to Nordic/Scandinavian countries again, then Germany doesn't look so good anymore. I would take a closer look especially at education, health and also the general infrastructure, in many areas it's really a bad joke what Germany does with all the tax money.
@krstanoski994
Жыл бұрын
So if I have business in Germany and make 1 mil euros in a year I need to pay almost half of it to the government?? Thats just stupid....that means I work 7 months for me and 5 months for the government.....
@simplegermany
Жыл бұрын
Business tax works differently again and is roughly 30% on profits, at least for corporations. For sole proprietors the same taxes apply as for employees.
@krstanoski994
Жыл бұрын
@@simplegermany ahhh thank you 😁
@generallegenddt.allgemeine8478
Жыл бұрын
@@krstanoski994 Keep in mind that's only the corporate level. The distribution of profits into your private account is again taxed at ~27%. So, a 100k profit is taxed at ~32% on corporate level and the remaining 68k distribution again with ~27%. Which leaves you with 49k and something for your 100k profit.
@garrett7101
Жыл бұрын
You make a million Euros and guess how much you'll be paying for health insurance every month on top of the taxes.
@HolgerGruenewald
7 ай бұрын
Very well explained (and this comes from a tax consultant).
@MUSICISLIFESAM
3 ай бұрын
Thanks for the information. Watching from India
@dreamingdesires5229
2 ай бұрын
I have subscribed your channel guizz.... Really very good content, keep it up
@msmark042
10 ай бұрын
In Denmark taxes are also progressive. I make around 65.000 Euro a year, and pay 48%.
@allansnape416
Жыл бұрын
You’ve done it again girls, great info great video Vielen Dank
@sateeshprathapani
Жыл бұрын
It's not the just income tax people talk when they say taxes are high! 1. Salaries are moderate when you look at the expenses. If you Say 60,000-80,000 Euro per year, that's still not high as per Indian IT professionals that typically Germany targets to reach. Factors: health insurance, employment insurance, high rents that make savings come to 30%. Which is too low , when I add expenses visiting India....that savings go further down. So, it's the savings matter to expats from India. We simply say taxes are high which means all expenses are very high that indirectly due to lots of indirect taxes.
@Micha-bp5om
Жыл бұрын
Exactly… all it matters is what you remain with after all salary deductions and other taxes that you cannot avoid. Luckly I earn over 100k but even that doesn’t make me rich. I can save around 40% but still…
@asheemsahu2946
Жыл бұрын
These videos are great. Can you make a video on Tax Returns? How much can be availed? How to avail? When to file tax return? When will the money come to the account? Etc.
@simplegermany
Жыл бұрын
We already have a video on the topic and suggest for you to watch it at the end of the video. Here it is again: studio.kzitem.infoqRiV8IEx14U/edit
@asheemsahu2946
Жыл бұрын
@@simplegermany you guys are the best 👌
@cebolaloco
Жыл бұрын
"social contribution": the state forcing you to pay for what you might not want to have in the first place, just like militias do when they force people to pay for "protection" 🤣🤣🤣
@Bizmyurt
5 ай бұрын
A salary of 35000 euros in Sweden you will end up paying around 24-25% of total income tax and that is a normal working salary. Unemployment insurance not included which varies from 30 to 60/70 euros a month depending on union. The pay you get when unemployed is more or less a joke.
@TheHarlotCharlotte
3 ай бұрын
Just found this channel! Love it! Thank you ladies ❤❤❤
@anuragmishra145
11 ай бұрын
Great job guys keep it up😊
@TexasMadeAprilRenee
Жыл бұрын
I'M GLAD YOU EXPLAINED THIS BECAUSE, I WAS ABOUT TO CHG MY MIND IN COMING.😂😂THEN, I SAW THIS VIDEO❤😮🎉🎉I'M BACK HAPPY NOW.😂
@MrAdmin-dj2tn
Жыл бұрын
really! are you sure about 600,000+ ? (ab einem Einkommen von 62.810.... should be correct) Der Spitzensteuersatz in Deutschland beträgt 42 % und gilt 2023 ab einem Einkommen von 62.810 € bis 277.826 €. Wer mehr als 277.826 € verdient, wird in Deutschland mit dem Höchststeuersatz von 45 % besteuert (auch Reichensteuer genannt). In etwa 4 Millionen Deutsche zahlen derzeit den Spitzensteuersatz.
@simplegermany
Жыл бұрын
If you would be so kind to watch the video, then you understand the difference between marginal tax rate and actual average tax rate and the point of this video 😊
@MrAdmin-dj2tn
Жыл бұрын
@@simplegermany yeah, you're absolutely right 🙂
@leonidas759
Ай бұрын
Mhhh this video is telling the truth, and i’m quite impressed by how well researched the subject is. But let’s not get too excited since actually that is only the Lohnsteuer. What really eat the people’s income are the mandatory versicherungs in Germany!!! Only the Rentenversicherung and the Krankenversicherung would eat another huge chunk of the net income 😢
@Fani.Christie
Жыл бұрын
Wonderful explanation! You leveled up with this video! I already know how tough the topic is, just about anytime and in any environment. It all makes sense, and these are only firm numbers. I do support the stances behind the design of the tax system and thanks to you, I can now shut some "friends" mouths about how almost stupid would I be to go to Germany, when after taxes I'd be getting no different than here. Well, noo. 😂I had known the basis of how taxes work, but I didn't have the means to explain that and not get laughed at or tired of useless arguing aiming at nothing in particular. *DISCLAIMER* When I say you leveled up, that is in no way to mean you were previously a level down. 🤣 This is all such hard work, such no-compromise research and writing and.. Woow, great visual graphs every time! I mean this is one to bring clarity where there's fear and to prompt real careful listening, because every point is PRECISE. Thank you, girls! So timely for me. 😃 And Kudos on your triathlon experience yesterday! 🥇
@simplegermany
Жыл бұрын
Thanks a lot Fanny! Happy to hear that our explanations are as clear as we intended them to be and that the effort pays off! 😊
@j.rinaldi87
2 ай бұрын
No, you are taxed even more than 42%: for a 65k€ salary (including the regular medical insurance) you will taxed around 47%.
@nadergadelrab2669
11 сағат бұрын
we pay more than 60% in Germany when considering VAT, CO2 taxes, and capital gains taxes. social contributions are taxes, not your money to spend. the video is optimistic
@spacextreme1
Жыл бұрын
I subscribed. After watching almost all your videos. You deserve it. I dont usually subscribe
@simplegermany
Жыл бұрын
Thanks a lot! 😊
@jolotschka
Жыл бұрын
Kinderfreibetrag, Ehegattensplitting, Steuerklassenwahl macht noch viel mehr aus. Steuern sind relativ gering aber KV RV machen reichlich was aus.
@ВадимКлимов-й1щ
Жыл бұрын
Considering the fact that i pay 13% in Bulgaria, you 28% is still too much
@Panicradio
Жыл бұрын
Yeah, but if you need to pay extra for your health care system to get access to good doctors, good education and you also need to save extra for your pension, then the 13% doesn't sound that good anymore and if you have any kids then this further increases.
@ВадимКлимов-й1щ
Жыл бұрын
@@Panicradio I have a medical insurance, and obviously can save money for my pension without giving them to the government
@Panicradio
Жыл бұрын
@@ВадимКлимов-й1щ so then recalculate that 13% and add those extra payments that you pay on top of the 13%. I am pretty sure you will end up closer to 30% as at least you should save 10-15% of your gross salary to your future pension if you want something decent by the time you retire.
@garrett7101
Жыл бұрын
Germany is a nanny state... and they don't want anyone to be wealthy.
@Christian-xi7sh
4 ай бұрын
The conclusion here wants to clarify why so much more is deducted from the gross salary, because a significant amount of social contributions is also deducted. This is correct but unfortunately still misleading. It is not mentioned that the gross amount one negotiates is not the amount the employer has to pay. The employer also has to pay the social contributions on top of what the employee pays. This conceals the real gross salary, so that employees do not see as clearly how much more is actually deducted from their salary. Whether separating income tax so distinctly from social contributions to downplay the tax burden is helpful, I don't know. Ultimately, what counts is what ends up in the account. The example with €75k costs the employer approximately €88k per year. With about €45k net per year, this corresponds to a total burden of about 49%. As mentioned, what counts is how much the employer can spend in total for a position and how much of that really ends up in the employee's account, and unfortunately, the 42% with €600k is a rosy calculation.
@antonkushch1579
6 ай бұрын
I think there is a typo in the table, 100k income shows 32,03%, but 150k - 31,35%, which does not make much sense
@maxid.7736
Жыл бұрын
Even as a German girl, tax stuff is quite difficult/ confusion 😅. And by the way you guys are soooo cute 🥰
@Masood1810
Жыл бұрын
Thank you. Very informative. Please can you make a video on how to claim the social contributions if we leave Germany?
@simplegermany
Жыл бұрын
We have a written guide for that 😊 www.simplegermany.com/german-pension-refund/
@imshikhararora
Жыл бұрын
Whaat! You guys are less than 50k. I thought these beautiful ladies would have subscriber count atleast 200k-500k
@simplegermany
Жыл бұрын
Go spread the word 😇
@manjunathak7704
Жыл бұрын
Guys interest rates are currently very high, so could you please suggest us about Fixed deposit where rates are going upto 4% or more. Seems good time to get some fixed returns with little to no risks. So your inputs always been helpful, so your insights would be appreciated. I am pretty sure lots of expats might be wondering on this topic or you might be already making something on this 😊
@simplegermany
Жыл бұрын
We have a written guide on that 😊 www.simplegermany.com/savings-account-germany/
@MrZipper42
Жыл бұрын
I agree with not including the church tax since that is truly optional and does not apply to everyone. Healthcare, unemployment insurance, pension, and nursing insurance should be included since these are truly taxes and they are based on a percentage of your earned income and they are NOT optional. Also, one should compare the taxes with someone who makes less than 30K, 60K, and 100K in the U.S., Canada, and Germany. Note in the U.S. I typically paid about 15% making a salary of 120K. Here in Germany, you would pay a lot more than 15%. Also, people in the US. who makes less than 30K a year typically only pay 7% and that is for their pension. Anyhow, I do agree that you don't pay 42% income taxes. However, you will in Germany a great deal more in taxes than you would in the U.S. And don't even get me started on the 19% VAT tax. So the video isn't completely accurate in many respects. After all, one should look more at what they are actually netting in their paycheck after mandatory deduction. And all mandatory deductions are a tax no matter how you try to sell it. BTW, I do like your channel a lot.
@simplegermany
Жыл бұрын
The video does not aim to compare. It aims to educate on how income tax is calculated, as it is often misunderstood. We will release another video on social contributions.
@dionysioskarypidis6120
4 ай бұрын
You talk about Lohn- und Einkommensteuerrechner. The fact is that you have to play more or less 1/3 of you income for other staff. Yes is it called Solidarität Steuer, but is is a tax nevertheless. For someone that has in Gross monthly income of 3000euros , will receive 1850-2000 euro (depends how much you play for your health insurance . Ingolstadt Bayern. Grust euch.
@coldxsniper
Жыл бұрын
No thanks, I'll stay in my County
@KhalidSaifullahsK
Жыл бұрын
Underated Channel!!! Subscribed!
@simplegermany
Жыл бұрын
Thank you so much! 😊
@KhalidSaifullahsK
Жыл бұрын
@@simplegermany Welcome!!! and thank you very much for uploading such a valuable content!
@arahulk123789
Жыл бұрын
Thank you for such a informative videos. Can you please create video on Pension for expats? especially for non EU residents?
@simplegermany
Жыл бұрын
We just published a guide on pensions last week: www.simplegermany.com/pension-in-germany/ We announced it in our weekly newsletter. If you'd like to receive such updates in the future, you can sign up to our newsletter here: www.simplegermany.com/newsletter/
@segretoesconociuto
Жыл бұрын
"Social contribution" is only a contribution if I am allowed not to pay it, which is not the case in Germany. It is just another name for a Tax in a state with socialist tendencies.
@reinhard8053
Жыл бұрын
It's still not a tax but insurance payments you're obliged to pay. And that is our social(!) system where people care for each other and we don't want anybody to die because he couldn't pay for an ambulance. You also need car insurance to drive, but that's not a tax, too (the vehicle tax is an additional cost).
@zillboy
Жыл бұрын
Wow, thank you :)
@surabhiraj7983
10 ай бұрын
Genuine tip - when one of you is talking let the focus be on her not on both, it will look better.
@landwirtschaft2116
6 ай бұрын
only your opinion.
@QuizPuzzleChallenge
11 ай бұрын
Great content
@sirinaydin8786
Жыл бұрын
Thanks a lot!
@XM_Josaux
4 ай бұрын
It is still quite high and discouraging for the above-average line salary.
@c0mplicated
9 ай бұрын
so this basically means get more money from the rich and less from the poor. wow what a design of the tax rate
@TaCC2
15 күн бұрын
„Youre not paying 40% taxes, youre just paying 20% taxes + another 20% for pensions and health care“ great!
@simplegermany
15 күн бұрын
An important distinction ☺️
@Scipionyxsam
3 ай бұрын
Meh. Strictly speaking income tax might be lower than 42%, but your income will be taxed in various additional ways. There's stuff like value-added tax on everything you buy, your employer has to pay incidental wage costs, there's oil tax, tabacco tax, alcohol tax, mineral tax, trade income tax, sales tax, solidarity surcharge, mandatory insurances...to name a few. At the end of the day, no matter how bureaucrats call the tax, you will pay not 42% of roaylities on your income but more like 70% if you add it all together.
@priyasrivastava9626
Жыл бұрын
Pension deducted will also be taxable, right?
@PeterBuwen
Жыл бұрын
I subscribed today.
@adrianfritz1962
6 күн бұрын
Q: Can you opt not to pay? A: No option. So, all them are taxes.
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