Germany doesn’t wait for you to hit seven figures before it treats you like you did. The top income tax bracket kicks in at €68,481. That’s not a typo. That’s the threshold. Cross it, and you’re paying 42 percent on every euro above. No private jet. No offshore account. Just a middle-class salary and a government that calls it wealth.
The 2025 tax tables confirm it. For single filers, income up to €12,096 is tax-free. From there, the rate climbs fast. Between €12,097 and €68,480, the rate scales from 14 to 42 percent. But once you hit €68,481, the full 42 percent applies. And if you somehow earn more than €277,825, the rate jumps again to 45 percent.
This isn’t just about income tax. Germany stacks on a 5.5 percent solidarity surcharge. That’s a tax on your tax. It was originally meant to fund reunification. That was 1990. It’s still here. If you belong to a church, expect another 8 or 9 percent on top of your income tax. That’s the church tax. It’s automatic unless you formally opt out.
Social contributions are another layer. Employees pay 7.3 percent for health insurance, 9.35 percent for pension insurance, 1.5 percent for unemployment insurance, and 1.175 percent for nursing care. Employers match most of those. But the employee share alone eats a chunk of every paycheck.
So what does €68,481 buy you in Germany? Rent in a major city like Munich or Frankfurt can run €1,500 a month for a modest flat. Groceries, utilities, and transport add another €1,000. After taxes and deductions, that “top bracket” income leaves little room for savings, let alone luxury.
The system is progressive on paper. In practice, it punishes upward mobility. A skilled worker, a mid-level engineer, or a dual-income household can hit the top bracket without ever feeling rich. The label doesn’t match the lifestyle. But the tax bill doesn’t care.
Sources:
https://tippunkt.de/en/income-tax-percentage-rate-germany/
https://taxsummaries.pwc.com/germany/individual/taxes-on-personal-income