Cologne salary quick facts
| City income tax | 0% (Germany has no city tax) |
|---|---|
| State income tax | 0% (no Bundesland income tax) |
| Federal Einkommensteuer | 14% – 45% (5-zone tariff) |
| Grundfreibetrag (tax-free) | €12,348 (single) |
| Kirchensteuer (North Rhine-Westphalia) | 9% of income tax (members only) |
| Solidaritätszuschlag | 5.5% above €20,350 income tax |
| Sozialversicherung (employee) | ~20% up to caps |
| VAT (Mehrwertsteuer) | 19% / 7% reduced |
About Cologne
Germany's fourth-largest city, located in the Rhineland. Strong insurance, media (RTL), pharmaceuticals, and chemicals. Part of NRW — Germany's most populous Bundesland. 9% Kirchensteuer.
German income tax (Einkommensteuer) — 2026
Germany taxes worldwide income on a calendar year basis. Unlike most countries, Germany doesn't use flat brackets — the tariff under §32a EStG is a piecewise polynomial, so the marginal rate rises smoothly from 14% to 42% across two progression zones.
The 5 tariff zones for 2026
| Zone | Taxable income (zvE) | Rate |
|---|---|---|
| 1 — Grundfreibetrag | €0 – €12,348 | 0% |
| 2 — Progressionszone | €12,349 – €17,799 | 14% → ~24% |
| 3 — Progressionszone | €17,800 – €69,878 | ~24% → 42% |
| 4 — Spitzensteuersatz | €69,879 – €277,825 | 42% |
| 5 — Reichensteuer | €277,826 + | 45% |
Steuerklassen — 6 tax classes
Steuerklassen control how Lohnsteuer is withheld monthly (not your ultimate tax bill — that's reconciled when you file). Choose:
- I — single, divorced, or widowed without children
- II — single parent (extra €4,260 Entlastungsbetrag)
- III + V — married, large income disparity (higher earner III, lower V)
- IV — married, similar incomes (default after marriage)
- VI — second job (no personal allowance, max withholding)
Annual tax owed is the same regardless of class — Steuerklasse only affects monthly cash flow.
Solidaritätszuschlag (Soli)
Originally introduced in 1991 to fund reunification, the 5.5% surcharge on income tax is now only paid by ~10% of taxpayers. For 2026, Soli applies only if your income tax exceeds €20,350 (single) or €40,700 (joint). There's a relief zone above the threshold where Soli ramps up gradually to the full 5.5%.
Kirchensteuer (church tax)
If you're a registered member of a recognised church (mainly Catholic or Protestant), you pay a surcharge of 8% (Bavaria, Baden-Württemberg) or 9% (other 14 Bundesländer) on your income tax. To stop paying, file a Kirchenaustritt at your local Amtsgericht or Standesamt.
Sozialversicherung (social insurance) 2026
Four mandatory branches, all roughly split 50/50 between employee and employer:
| Branch | Total rate | Employee | Cap (yr) |
|---|---|---|---|
| Rentenversicherung (pension) | 18.6% | 9.3% | €101,400 |
| Krankenversicherung (health) — base + avg Zusatz | ~17.5% | ~8.75% | €69,750 |
| Pflegeversicherung (long-term care) | 3.6% (+0.6% childless ≥23) | 1.8% | €69,750 |
| Arbeitslosenversicherung (unemployment) | 2.6% | 1.3% | €101,400 |
Cap = Beitragsbemessungsgrenze (contribution assessment ceiling). Income above each cap doesn't add contributions. Caps are uniform East/West since 2025.
Privately insured (PKV) employees skip GKV — the employer typically reimburses up to half the PKV premium (Arbeitgeberzuschuss).
Mehrwertsteuer (VAT)
Standard rate 19% on most goods and services. Reduced rate 7% on staple food, books, newspapers, hotels, and public transport. Restaurant meals reverted from 7% pandemic relief back to 19% on 1 Jan 2024.
Sources
- §32a EStG — Einkommensteuertarif
- BMF — Amtliches Lohnsteuer-Handbuch 2026 §32a
- Bundesregierung — Beitragsbemessungsgrenzen 2026
- TK — Beitragsbemessungsgrenzen
- Bundesregierung — Solidarity Surcharge
Calculator provided for estimation only and does not constitute tax advice. For exact figures, consult a Steuerberater (tax advisor) or the BMF online calculator at bmf-steuerrechner.de.
Related tools
- Germany Salary Calculator — with Bundesland picker
- Germany Income Tax Calculator
- Sozialversicherung Calculator
- Germany VAT Calculator