Marginal tax burden
The marginal tax burden denotes the share of taxes ( wage tax , solidarity surcharge , possibly church tax ) and social security contributions that are attributable to a certain increase in income (gross wage increase). The marginal tax burden depends on the income tax rate and the individual tax outdoor and lump sums from (z. B. basic allowance , income-related expenses lump sum , pension allowance and possibly child allowance ).
Example:
- The annual gross income of an unmarried employee in 2014 is € 45,000. Of this, € 8,035 income tax , € 441.92 solidarity surcharge , € 723.15 church tax (9%) and € 9191.25 social security contributions are payable.
- A salary increase of € 3,000 increases the annual gross income to € 48,000. Of this, € 8947 income tax, € 492.08 solidarity surcharge, € 805.63 church tax (9%) and € 9804 social security contributions are payable.
- On the increase in income of € 3,000, an income tax of € 912, € 50.16 solidarity surcharge, € 82.08 church tax (9%) and social security contributions of € 612.75, together € 1,656.99, is 55.2% of the total Raise. The marginal tax burden for € 3,000 income growth is therefore 55.2%.
The marginal tax burden in Germany is around 50% for employees in the middle income range. On the other hand, low-wage earners benefit from a low marginal tax rate, higher earners benefit from the social security contribution assessment ceiling , which reduces the marginal tax burden with regard to social security contributions to zero.