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German Tax calculation

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German Tax calculation
Answer
1/28/09 11:00 AM
I need to know how German tax calculation is done, especially how the basic tax free allowance is deducted. For e.g. If the total or taxable income is Euro 54000 and the tax free allowance is euro 14000, will the tax be calculated on euro 54000 minus 14000, i.e.40000 only ?

Please share your experiences on this.

regards,
Savera
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Re: German Tax calculation
Answer
1/28/09 12:17 PM as a reply to S R.
Yes.

It's complicated for normal tax payers....easy way to know how much tax u got pay is to use this calculator

http://www.spiegel.de/wirtschaft/0,1518,223811,00.html

Or......Here you can find more info including the formulas for calculating your tax:
http://de.wikipedia.org/wiki/Einkommensteuer_(Deutschland)
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Re: German Tax calculation
Answer
1/29/09 5:25 AM as a reply to S R.
Thanks xyxyxy.
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