How your net salary is calculated
From your gross salary, taxes are deducted first and social security contributions second. This page describes factually, step by step, how this calculator works out net pay from gross – in exactly the order in which the amounts are determined.
Step 1: Gross salary
The starting point is your annual gross salary. The calculator determines the wage tax (Lohnsteuer) on an annual basis and then splits the results across the period you choose (month or year).
Step 2: Wage tax (Programmablaufplan)
The wage tax (Lohnsteuer) is calculated using the official payroll program flow chart (Programmablaufplan, PAP) published by the Federal Ministry of Finance (§ 39b EStG). The PAP takes into account, among other things, the basic tax-free allowance (Grundfreibetrag, 2026: €12,348, § 32a EStG), the tax class, and the tariff zones of the income tax schedule. This calculator implements the PAP for 2025 and 2026. How the tax class affects the deduction is shown on the page “Tax classes 1–6 explained”.
Step 3: Solidarity surcharge
The solidarity surcharge (Solidaritätszuschlag) may apply to the wage tax (§ 4 SolzG, 5.5%). Thanks to an exemption limit (Freigrenze) – in 2026 up to an annual wage tax of €20,350, or €40,700 in tax class III – and a subsequent phase-in zone (Milderungszone), it does not apply to most employees or is only partly levied. For parents, a tax base reduced by the child allowances (Kinderfreibeträge) is used.
Step 4: Church tax
If you belong to a religious community that levies church tax, church tax (Kirchensteuer) is added. It is 8% of the wage tax in Baden-Württemberg and Bavaria and 9% in the other federal states.
Step 5: Social insurance
The employee shares of social insurance are deducted from the gross salary, in each case only up to the contribution assessment ceiling (Beitragsbemessungsgrenze):
- Pension insurance (Rentenversicherung): 9.3% (half of the total contribution of 18.6%), up to €101,400 (2026).
- Unemployment insurance (Arbeitslosenversicherung): 1.3% (half of 2.6%, § 341 SGB III), up to €101,400 (2026).
- Health insurance (Krankenversicherung): 7.3% (half of the general contribution rate of 14.6%, § 241 SGB V) plus half of the health fund's additional contribution (Zusatzbeitrag, KVZ), up to €69,750 (2026).
- Long-term care insurance (Pflegeversicherung): the contribution depends on the number of children and the federal state. People without children aged 23 and over pay a surcharge of 0.6 percentage points (§ 55 Abs. 3, § 58 Abs. 1 SGB XI); from the second to the fifth child under 25, the contribution is reduced by 0.25 percentage points each; in Saxony, employees bear a share one percentage point higher (§ 58 Abs. 3 SGB XI). Up to €69,750 (2026).
Portions of salary above the respective ceiling are exempt from contributions.
Step 6: Net pay
Your net salary is the gross salary minus wage tax, the solidarity surcharge, church tax, and the four social insurance contributions.
Rounding and period
The annual figures are authoritative. The monthly tax amounts shown (wage tax, solidarity surcharge, church tax) are rounded down to the full cent – as in the official BMF calculator; gross salary and social contributions are rounded commercially (half up). Small deviations from an exact twelfth of the annual figure are therefore possible.
Overview
| Deduction | Basis | Assessment ceiling 2026 |
|---|---|---|
| Wage tax | PAP, tax class, basic allowance | – |
| Solidarity surcharge | 5.5% of the wage tax (with exemption limit) | – |
| Church tax | 8% / 9% of the wage tax | – |
| Pension insurance | 9.3% | €101,400 |
| Unemployment insurance | 1.3% | €101,400 |
| Health insurance | 7.3% + half KVZ | €69,750 |
| Long-term care insurance | depends on children and federal state | €69,750 |
Frequently asked questions
In what order is net calculated from gross?
First the wage tax (Lohnsteuer) using the official payroll program flow chart, then the solidarity surcharge and, where applicable, church tax, and finally the social insurance contributions (pension, unemployment, health, and long-term care insurance). Net pay is the gross salary minus these amounts.
What is the payroll program flow chart (Programmablaufplan, PAP)?
The Programmablaufplan is the official calculation method for wage tax published by the Federal Ministry of Finance. This calculator implements the PAP for the years 2025 and 2026.
Why do the monthly figures sometimes differ by one cent?
The annual figures are authoritative. The monthly tax amounts are rounded down to the full cent as in the official BMF calculator, so small deviations from an exact twelfth can arise.
Up to what income are social contributions calculated?
Up to the contribution assessment ceilings (Beitragsbemessungsgrenze): in 2026 these are €101,400 for pension and unemployment insurance and €69,750 for health and long-term care insurance. Portions of salary above these are exempt from contributions.
What role does the tax class play?
The tax class only affects the amount of the monthly wage-tax deduction, not the social contributions. A detailed overview is provided on the page “Tax classes 1–6 explained”.
Does the calculator account for the health insurance additional contribution?
Yes. The health fund's individual additional contribution (Zusatzbeitrag, KVZ) is adjustable; the default is the average additional contribution for the respective year.
Learn more: Tax classes 1–6 explained · Net salary in figures.
Sources: § 39b EStG, § 32a EStG (gesetze-im-internet.de), wage-tax program flow chart 2025/2026 / Programmablaufplan (bmf-steuerrechner.de), § 4 SolzG, § 241 SGB V, § 341 SGB III, §§ 55, 58 SGB XI.
This calculation is for informational purposes only. Results are estimates and do not substitute professional guidance. For binding information please consult a Steuerberater or Lohnsteuerhilfeverein.