Income Tax

You could be subject to income tax depending on your individual case; however, generally employees are subject to progressive income tax in Germany (the tax rate increases with taxable income). Therefore, you need an income tax number (Lohnsteuernummer), which you should get from the city authorities (Bürgeramt or Einwohnermeldeamt) or directly from the tax authorities (Finanzamt). As soon as you have it, please inform the CISPA Human Resources Department. The so-called double taxation agreements that Germany has signed with several countries help you to not pay taxes in two countries at the same time.

ⓘ For more information on paying tax and double taxation agreements, go to the Finance Ministry’s website. This page is only for general guidance, your circumstances may vary. If/when you decide to work with us, our departments will assist you!

The income tax is automatically deducted directly from your wages. The exact amount you pay depends on earnings, marital status, children, and other factors. It’s important to be in the correct income tax class (Lohnsteuerklasse).

Bonus: How does progressive taxing look like in Germany?

You can take a look at the official website prepared by the Federal Government of Germany for a brief explanation, by clicking here.

ⓘ Disclaimer This is not a guide or financial advice, just a quick overview of German tax classes.

Class I: Single, widowed, civil partner, or divorced (married persons not in II–IV)
Class II: Single but entitled to single-parent allowance
Class III: Married with non-earning spouse or spouse in Class V, or recently deceased
Class IV: Married (not separated); both spouses earning and residing in Germany
Class V: Married but one spouse is in Class III
Class VI: Individuals with more than one employer

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