einkommensteuerpflichtig

Einkommensteuer is the main direct tax on individuals in Germany. It is imposed on a person’s total income from all sources, including wages, self‑employment, business profits, and various forms of investment income. The tax is a federal levy, collected by local tax offices (Finanzämter) but administered within a nationwide framework. The proceeds fund public services and social programs.

The tax base is the taxable income, or zu versteuerndes Einkommen, which is calculated after applying deductions, allowances, and exemptions. Common elements include the basic tax-free allowance, work-related expenses (Werbungskosten), special expenses (Sonderausgaben), and allowances for dependents. Employees usually have income tax withheld monthly through the Lohnsteuer system, while self‑employed and others may file an annual Einkommensteuererklärung (tax return) to determine the final liability.

Rates are progressive. The marginal rate increases with income, with the highest marginal rates applying only to the top portions of earnings. In practice, this means a significant portion of income is taxed at lower rates, while higher incomes face higher brackets, up to the top rate for very high incomes. In addition to the basic income tax, taxpayers may face other charges, such as church tax for members of registered religious communities and a solidarity surcharge (in some cases) on the income tax.

Tax planning in Germany often centers on optimizing deductions, credits, and class choices (Steuerklassen) for employees, as well as accurate withholding and timely filing of annual returns. The framework is updated annually by the tax laws and budgets, reflecting policy goals and economic conditions.