Wage Tax Application in Germany

Abstract

Whether you are a German citizen or a foreigner, you are required by law to pay taxes if you earn money while living or working in Germany. Taxes are collected by the federal government, federal states and municipalities. Wage tax is one of these taxes. The subject of this study is the characteristics and basic elements of the wage tax application in Germany and the latest legal regulations regarding this tax are briefly explained. For this purpose, practices regarding wage tax are presented by using various written and internet sources regarding German tax laws. At the end of the study, the tax tariffs, tax classes and deductible expense items accepted by law in calculating the tax are discussed and their impact on determining the tax amount is emphasized.