Hi everyone,
Usually I am not that deep into politics and stuff. But the economical situation is getting worse and worse.
I am very curious about the income tax in your other countries. Of course there will be some special cases here and there. For the most people they simply have their income from work and thats it.
I just wanna get a feeling what income tax looks in other countries to be able to judge the situation here - in Germany - better.
Income Tax in germany for a single person: (yearly income)
Income < 10.347€ --> 0% (no taxes - but still social insurance contributions)
Income > 10.348€ --> 14% up to 42% (increasing % with increasing income)
Income > 58.597€ --> 42% (top tax rate)
Income > 277.826€ --> 45% (rich taxe rate)
(Just for the sake of completeness: Contribution for social insuraces are to be paid additional to these taxes. Contribution for social insuraces are capped at different values)
Clarification: People earning 60.000€ dont pay 42% for their whole 60.000€, but 42% only for the money above 58.597€. For the lower levels they payless taxes for the accordingly amount. There are huge tables, which exactly state how many taxes you have to pay for which income.
Compared to that:
Average salary: 51.009€
Median salary: 44.074€
That basically means that everyone, who earns 15% more than average salary (or everyone, who earns roughly 33% more than median salary) pays top tax rate!
58.597€ before tax and insurance contributions concludes to roughly 35.000€ net. (2916€ monthly)
51.009€ before tax and insurance contributions concludes to roughly 31.350€ net. (2612€ monthly)
44.074€ before tax and insurance contributions concludes to roughly 27.900€ net. (2325€ monthly)
To put these values it into perspective: (just my own experience, of course these values can and will vary and depend on many factors)
If you pay like 500-600€ per month for rent, it is considered cheap, roughly 800-900€ should be kind of "normal".
If you pay like 300€ per month for your car (fuel + insurance + taxes + everything else), it is considered cheap, roughly 400-500€ is rather "normal".
If you pay like 100-150€ per month for food, it is considered cheap, 200-250€ is rather normal. (1 person)
I personally dont need too much stuff, dont even have a car or even a drivers license (using public transport) and I need like 1100€ monthly for my living. Yes, there are people, who need less, but I guess the majority, who lives alone (and so cant share any costs for like rent) needs (much) more.
Nowadays, if you need a flat for your family (2 adults, 1-2 children), like 80-90 square meters, you need to be lucky to find something in a good location below like 1400€.
My main issue is that everyone here who earns a little bit more than median/average pays top tax rate for a part of his income. It is not just a thing for rich people, but for many kind of normally average people. (I am far below that^^)
Yes, there is another step from 42% to 45%, but in general 42% is considered being the top tax rate.
Its not about crying or something, I just want to find out the situation in other countries.
I also know that you can not fully compare it because yet alone the public social services are differing massively, but still this can be a nice indication.
