Hi,

I am a masters student in Germany. I am going to work as an IT Professional in Mainz from September 2005. Initial contract is for 1 year; salary is 3500€ for the first 6 months and 3800€ for the next 6 months.

I would like to know approx. how much tax I've to pay!? Assuming that I'll be working in Germany for the next three years only, will the tax amount will be refunded? Is there any English websites that explains German tax system?

Also I am looking for accomodation(single room/apartment) in Mainz or Mainz-Gonsenheim areas. Thanks for any help.

- Jagdeesan Balakrishnan.

"I would like to know approx. how much tax I've to pay!?"

with that income - ca. 21-22%

"Assuming that I'll be working in Germany for the next three years only, will the tax amount will be refunded?"

no. although if you will work in Germany in the last year less than 6 months, then yes - for the last year

"Is there any English websites that explains German tax system?"

probably, but it's very likely that the info will be far from complete. German tax system is very complicated. example: i have one book, it's commentary to german income tax - 2538 pages of very small text with lots of abbreviations

Thank you for the reply.

"no. although if you will work in Germany in the last year less than 6 months, then yes - for the last year".

Sorry its quite difficult for me to understand this sentence. Could you please rephrase the sentence?

Thanks.

I would like to know approx. how much tax I've to pay!?
--> I guess for a single person, you shall have to pay around 45% tax( Rente, Steuer, Krankenver., Arbeitsloss etc.)
For a married person it could be around 33%.

Assuming that I'll be working in Germany for the next three years only, will the tax amount will be refunded?
--> your part of rente ( = around 10% of your monthly salary) will be refunded.

"I guess for a single person, you shall have to pay around 45% tax( Rente, Steuer, Krankenver., Arbeitsloss etc.)"

Rente, Krankenver., Arbeitsloss are not taxes, but insurances ;)

"Sorry its quite difficult for me to understand this sentence. Could you please rephrase the sentence?"

np if you live and work in Germany for less than 6 months in some year, the income tax for this year will be returned to you, as you will have to pay it in your home country

if you live and work in Germany for more than 6 months in a year, you pay taxes in Germany and not in your home country

Some info that I have:

Taxes:
Income Tax 20%

Insurances:

Medical Insurance 13 - 15%
Nursingcare Insurance 1.7%
Pension fund 19.5%
Unemployment ins 6.5%
(Half of each insurance will be borne by the employer)

@fred,

"Medical Insurance 13 - 15%
Nursingcare Insurance 1.7%
Pension fund 19.5%
Unemployment ins 6.5%
(Half of each insurance will be borne by the employer)"


---- if someone's salary is 3000 euro per month (brutto), then Pension fund will be 585 euro of which his employer will pay 292.5 euro(50%). so, when the employee will get refund of pension, he will get this whole amount 585 euro(his part from his salary + the part paid by employer), isn't it (as you said)?

Cheers.

@crown76

No, you will get only the part paid by the employee. The part paid by the employer will stay in the government Treasury. The amount is considered as a gift from the employer to the government for allowing you to work for them ;-)

Cheers
Rajesh

Mmm.. so, I have to pay around 45% of my salary as tax and insurance. Never thought this much!!! And 10% of my salary will be refunded when I am going out from Germany, right?

Just one more question: How much money can I send to my home country(India) every year? Is there any restrictions/advantages/disadvantages ?

You people are very helpful, thank you.

Irrespective of how much you send, you can claim only 1900 Euro per parent per year in your Tax filing form. (This applies only to India).

Try this online Salary calculator(posted in this form earlier).
http://finanzen.focus.msn.de/D/DA/DA80/da80.htm