Taxes - FINBER | Finance in Germany made simple

Social security contributions in Germany in 2026

Social security contributions in Germany in 2026: pension and health insurance, care, unemployment and solidarity surcharge. Who pays and how much.

Income tax in Germany

Two different things are deducted from the gross salary, and they are often confused. Taxes are the Lohnsteuer, plus church tax if you belong to a church, plus the remnants of the Solidaritätszuschlag for high earners. Social security contributions are separate: pension, health, care and unemployment insurance.

Do pensioners pay tax?

Pensions in Germany are taxable, but far from entirely and not for everyone. For the majority of standard old-age pension recipients, no tax arises at all: the amount does not reach the tax-free allowance. For those who receive more or have other income, the tax is calculated according to rules that are worth understanding in advance.

What is the difference between a Steuer-ID and a Steuernummer?

Steuer-ID and Steuernummer are constantly confused — and with good reason: both translate as «tax number», both come from the tax office, and both consist of digits. The difference is simple and important.

Who the Riester pension is not right for

. From 1 January 2027, the scheme is being closed to new contracts—it will be replaced by the Altersvorsorgedepot, which offers three times the government top-up. Existing contracts will remain in force; nobody is terminating them or transferring them compulsorily.

FAQ: Self-employment and business in Germany

60 Common Questions about Self-Employment in Germany with Answers: Freiberufler or Gewerbe, Registration, Taxes and VAT, Invoices and Accounting, Health Insurance, Pension, Residence Permit. Verified with German Law, Up-to-date for 2025/2026.

Tax classes

Everyone working in Germany has a tax class (Lohnsteuerklasse). Why are tax classes needed? No matter which tax class you have, you can claim back overpaid tax through a tax return. Does the tax class therefore have no effect on anything? First I will explain why that is indeed the case. But later I will show in which cases the tax class is important after all.

Rürup-Rente — a private pension scheme with state subsidies

Rürup-Rente: a pension for the self-employed with tax relief options

How to file a tax return in Germany yourself

The tax return (Steuererklärung) in Germany seems like a complex task, especially if you are self-employed or have several sources of income. However, knowing the basic principles, you can easily put together your annual tax return yourself, get back some of the tax paid, and perhaps even turn filling out the return into an engaging activity.

Accounting and tax return software and applications

In Germany, both for businesses and private individuals, proper bookkeeping and compliance with tax obligations play a key role in financial planning. The complexities of tax laws can be a challenge for both entrepreneurs and ordinary citizens. The rapid development of technology provides access to programmes that significantly ease accounting processes and simplify tax record-keeping. In this article, we will examine various software solutions specifically created to facilitate the tracking of income and expenses, as well as looking at their application both in a business context and in the daily lives of private individuals in Germany.