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comparing tax in germany with united states

GermanyUnited StatesDifference in United States
Gross Income 35,886.06 EUR / 30,000.00 GBP 37,840.53 USD / 30,000.00 GBP - 0.00 GBP
Tax Due 9,222.23 EUR / 7,709.59 GBP 7,392.13 USD / 5,860.49 GBP - 1,849.10 GBP
Net Income 26,663.83 EUR / 22,290.41 GBP 30,448.40 USD / 24,139.51 GBP + 1,849.10 GBP
Overall Tax Rate 25.7 % 19.5 % - 6.20 %.

Figures based upon 1 EUR = 0.83597921 GBP.

Figures based upon 1 USD = 0.79280074 GBP.

In Germany, an income of 35,886.06 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 18,900.00 EUR / 15,800.01 GBP and less than the country's average income of 43,000.00 EUR / 35,947.11 GBP.

In United States, an income of 37,840.53 USD / 30,000.00 GBP is more than the lowest average advertised salary of 24,694.00 USD / 19,577.42 GBP and less than the country's average income of 60,000.00 USD / 47,568.04 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 / 0.28 GBP 1.75 USD / 1.39 GBP + 1.11 GBP
Milk Bottle (1L) 0.70 EUR / 0.59 GBP 0.82 USD / 0.65 GBP + 0.06 GBP
Pint of Beer 3.50 EUR / 2.93 GBP 4.00 USD / 3.17 GBP + 0.24 GBP
Bread (500g) 1.30 EUR / 1.09 GBP 2.58 USD / 2.05 GBP + 0.96 GBP
Chicken Breasts (1kg) 7.34 EUR / 6.14 GBP 8.48 USD / 6.72 GBP + 0.58 GBP
Petrol UK Gallon 6.36 EUR / 5.32 GBP 3.27 USD / 2.59 GBP - 2.73 GBP
Volkswagen Golf or Equivalent 20,000.00 EUR / 16,719.58 GBP 21,845.00 USD / 17,318.73 GBP + 599.15 GBP
Broadband Internet Monthly 30.14 EUR / 25.20 GBP 62.44 USD / 49.50 GBP + 24.30 GBP
Rent One Bedroom Apt. In City (Monthly) 702.47 EUR / 587.25 GBP 1,261.46 USD / 1,000.09 GBP + 412.84 GBP
Purchase One Bedroom Apt. In City 167,807.15 EUR / 140,283.29 GBP 89,561.15 USD / 71,004.15 GBP - 69,279.14 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 4 bands ranging from 0% to 45%.

Tax bands are as follow:

Below 11604 EUR - 0%

Between 11604 EUR and 66760 EUR - 14%.

Between 66760 EUR and 277825 EUR - 42%.

Above 277825 EUR - 45%.

The first band is essentially the tax-free allowance of 11,604 EUR.

A default deduction is allowed of 1,230 EUR for work-related expenses.

Social contributions made by the employee are : Pension 9.3%, Unemployment 1.3%, Health 7.3%, and Nursing 1.525%.

Social contributions are deducted before calculating taxable income

These contributions are made as a percentage of the entire gross wage - limited to 90,600 EUR (Pension and Unemployment), 62,100 EUR (Health and Nursing).

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.

The United States has both Federal and State taxes. For comparative purposes we will use New York state here.

A progressive tax system spread over 7 bands ranging from 10% to 37%.

2024 Federal Tax bands are as follow:

Below 11600 USD - 10%

Between 11600 USD and 47150 USD - 12%.

Between 47150 USD and 100525 USD - 22%.

Between 100525 USD and 191950 USD - 24%.

Between 191950 USD and 243725 USD - 32%.

Between 243725 USD and 609350 USD - 35%.

Above 609350 USD - 37%.

The standard single person's deduction is 14,600 USD and the personal exemption is now 0 USD (2024). 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.

FICA Taxes: Social security tax is 6.2% on up to 168,600 USD of gross income (2024).

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

The average 401(k) contribution (workplace pension) rate is typically around 7% of an employee's salary. It is deducted from salary before calculating taxes (federal, state and city).

New York state taxes are spread across 10 bands ranging from 4% to 10.9%

Below 8950 USD - 4%

Between 8950 USD and 13900 USD - 4.5%.

Between 13900 USD and 21400 USD - 5.25%.

Between 21400 USD and 80650 USD - 5.9%.

Between 80650 USD and 215400 USD - 6.09%.

Between 215400 USD and 1077550 USD - 6.41%.

Between 1077550 USD and 5000000 USD - 6.85%.

Between 5000000 USD and 25000000 USD - 9.65%.

Between 25000000 USD and 50000000 USD - 10.3%.

Above 50000000 USD - 10.9%.

New York state tax has a standard deduction of 8,000 USD for a single filer.

Residents of New York City also pay city income tax, which range from 3.078% to 3.876%.

Below 12000 USD - 3.078%

Between 12000 USD and 25000 USD - 3.762%.

Between 25000 USD and 50000 USD - 3.819%.

Above 50000 USD - 3.876%.

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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