Salary Comparison – Calculate Your Pay Raise

Germany has a progressive income tax: the more you earn, the higher the marginal tax rate. Social insurance contributions also rise with income up to the contribution ceiling. In certain income brackets, only around 50–65% of a raise translates into additional net pay.

Tax class 3 is interesting for married couples where one partner earns significantly more. A pay rise for the main earner in class 3 is taxed more favourably than in class 1 or 4. Use our Tax Class Optimizer to compare all combinations.

The federal state affects the church tax rate (8% in Bavaria and Baden-Württemberg, 9% elsewhere) and the social insurance ceilings (East/West). With otherwise equal parameters, the net difference between states can be several euros per month.

The effective tax rate is the ratio of all taxes (income tax + solidarity surcharge + church tax if applicable) to gross salary. The calculator shows you the total deduction rate including social insurance for both salary levels.

Due to progressive taxation, the full amount of a raise does not reach your pocket. On a salary of €3,500 gross, an extra €500 brings approximately €280–320 more net. The exact result depends on your tax class and current salary.

Germany has a progressive tax system: the higher the income, the higher the marginal tax rate. Social insurance contributions also rise proportionally with salary up to the contribution ceiling. Our comparison calculator shows the exact net effect.