Income tax table

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From payroll tax tables can be seen how much the employer from the wages of an employee payroll tax , the solidarity surcharge and church tax has to be deducted. With the increasing spread of computers, electronic versions of the wage tax tables can be found as "wage tax calculators" or "gross-net calculators".

Germany

In Germany, a distinction is made between a general table (for employees subject to pension insurance) and a special table (for persons not subject to pension insurance such as civil servants or shareholder managers). In order to take into account the lump sums and allowances provided by the legislature for different cases (single earner, double earner, single parent with child, etc.), there are six wage tax classes ( defined in § 38b EStG ). Child allowances are also taken into account in tax brackets 1 to 4 . Because of the child benefit, however, child allowances only reduce the solidarity surcharge and the church tax, which is why the columns required for this usually make up the main part of the income tax tables.

The income tax table in tax classes 1 to 4 is also based on the income tax rate set out in Section 32a of the Income Tax Act. In tax classes 5 and 6, however, a special calculation rule applies that is intended to more precisely map the income tax liability for spouses (tax class combination 5/3) or for other employment relationships (tax class 6) ( Section 39b (2) sentence 7 EStG ). When calculating wage tax, the tax class-dependent lump sums and allowances are deducted and the wage tax to be paid by the employer is determined from the remaining taxable income .

Up to 2003 tiered tariff and official tables

Until 2003, income tax was calculated according to a tiered tariff in stages of € 36 or, if the spouse split was used, of € 72. Different incomes that were within one level were previously charged with the same income tax amount. For this purpose, official income tax tables were created from which the income tax could be read at the corresponding level. This tiered tariff was replaced in 2004 by a stepless formula tariff. The tariff levels and the associated mean value method (= calculation of the tax based on the mean value of the respective income level) were last used in 2003.

From 2004 formula tariff, no more official tables

In 2004, the individual tax calculation was introduced for every income rounded down to a full euro amount. As a result of this change, there have been no official income tax tables since 2004. Since wage taxation is also based on the income tax rate, there is no longer an income tax table based on a tiered rate.

However, so that smaller companies can continue to deduct wage tax with wage tax tables, but also because companies with automatic wage tax calculation still have a practical need to be able to read off tax deductions from tables in individual cases, the legislature continues to use wage tax (approximate) tables approved ( Section 51 (4) No. 1a EStG in the sense of the StSenkG). Since 2004, however, the wage tax tables have only been a supplementary alternative to the automatic wage tax calculation according to the stepless formula tariff.

In order to preserve the official character of the wage tax tables, the Federal Ministry of Finance publishes a program flow chart for the creation of wage tax tables in addition to the program flow chart for automatic wage tax determination. This ensures that the manual wage tax calculation can still be carried out according to uniform wage tax tables ( Section 52 (59c) EStG in the sense of the Flood Victims Solidarity Act). To create the wage tax tables, the annual wage tax is determined from the highest value of a € 36 table step. This results in a greater difference between the individual value calculation and the table value, the further the wage deviates from the table step end value. With a monthly wage table in 3 € steps (corresponding to a 36 € step annual wage table) and the maximum tax burden of approx. 48% (with SolZ and KiSt 9%), the table can result in an approx. 1.45 € / Month higher tax compared to the individual calculation.

Austria

In Austria, wage tax is regulated in Part 5 of the Income Tax Act (EStG 1988). The wage tax rate is determined according to § 66 EStG 1988, which in turn refers to § 33 EStG 1988, where the progression levels can be found.

In the Income Tax Act 1972 there were twelve progression levels, this was gradually reduced. Up to the end of 2004 there were five levels of progression, since January 1, 2005 there have only been three levels of progression.

See also

Web links