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comparing tax in united states with germany

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United StatesGermanyDifference in Germany
Gross Income 39,370.53 USD / 30,000.00 GBP 35,518.14 EUR / 30,000.00 GBP - 0.00 GBP
Tax Due 5,421.60 USD / 4,131.21 GBP 9,109.26 EUR / 7,694.03 GBP + 3,562.82 GBP
Net Income 33,948.93 USD / 25,868.79 GBP 26,408.88 EUR / 22,305.97 GBP - 3,562.82 GBP
Overall Tax Rate 13.8 % 25.6 % + 11.80 %.

Figures based upon 1 USD = 0.76199127 GBP.

Figures based upon 1 EUR = 0.84463882 GBP.

In United States, an income of 39,370.53 USD / 30,000.00 GBP is more than the lowest average advertised salary of 24,694.00 USD / 18,816.61 GBP and less than the country's average income of 60,000.00 USD / 45,719.48 GBP.

In Germany, an income of 35,518.14 EUR / 30,000.00 GBP is more than the lowest average advertised salary of 18,900.00 EUR / 15,963.67 GBP and less than the country's average income of 43,000.00 EUR / 36,319.47 GBP.

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

United StatesGermanyDifference in Germany
Water Bottle (1.5L) 1.75 USD / 1.33 GBP 0.34 EUR / 0.29 GBP - 1.04 GBP
Milk Bottle (1L) 0.82 USD / 0.62 GBP 0.70 EUR / 0.59 GBP - 0.03 GBP
Pint of Beer 4.00 USD / 3.05 GBP 3.50 EUR / 2.96 GBP - 0.09 GBP
Bread (500g) 2.58 USD / 1.97 GBP 1.30 EUR / 1.10 GBP - 0.87 GBP
Chicken Breasts (1kg) 8.48 USD / 6.46 GBP 7.34 EUR / 6.20 GBP - 0.26 GBP
Petrol UK Gallon 3.27 USD / 2.49 GBP 6.36 EUR / 5.37 GBP + 2.88 GBP
Volkswagen Golf or Equivalent 21,845.00 USD / 16,645.70 GBP 20,000.00 EUR / 16,892.78 GBP + 247.08 GBP
Broadband Internet Monthly 62.44 USD / 47.58 GBP 30.14 EUR / 25.46 GBP - 22.12 GBP
Rent One Bedroom Apt. In City (Monthly) 1,261.46 USD / 961.22 GBP 702.47 EUR / 593.33 GBP - 367.89 GBP
Purchase One Bedroom Apt. In City 89,561.15 USD / 68,244.81 GBP 167,807.15 EUR / 141,736.43 GBP + 73,491.62 GBP

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 10% to 37%.

2024 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.

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).

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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).

Help

This calculator allows you to calculate income taxes and social contributions equivalent for United States and Germany 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 United States's and Germany'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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