Basis of Calculation
The calculation of income tax is based on the gross income of the trainee. Various allowances, such as the basic tax-free amount and the flat-rate for income-related expenses, are taken into account. Only the income exceeding these allowances is taxed at the applicable tax rate.
Consideration of Tax Class
The tax class of the trainee significantly influences the amount of income tax. In Germany, there are six tax classes, with trainees typically classified in Tax Class I. This tax class applies to unmarried individuals without children and provides moderate tax deductions.
Allowances in Calculation
The following allowances are automatically considered in the income tax calculation:
- Basic Tax-Free Amount: €10,908 annually, up to which no income tax is incurred
- Flat-Rate for Income-Related Expenses: €1,230 annually
- Flat-Rate for Special Expenses: €36 annually
If the actual income-related expenses of the trainee exceed the flat rate, these can be claimed in the course of a tax return.
Steps of Income Tax Calculation
- Determination of the trainee’s annual gross income
- Deduction of allowances (basic tax-free amount, flat-rate for income-related expenses, flat-rate for special expenses)
- Calculation of taxable income
- Application of the applicable tax rate according to the income tax table
- Determination of income tax as well as church tax and solidarity surcharge if applicable
Example Calculation
A trainee receives an annual gross compensation of €12,000. The calculation of income tax proceeds as follows:
- Annual Income: €12,000
- Basic Tax-Free Amount: €10,908
- Taxable Income: €12,000 – €10,908 = €1,092
- Tax Rate according to the income tax table: approx. 14 %
- Income Tax: €1,092 × 14 % = €152.88 annually
The monthly income tax in this case amounts to €12.74.
Additional Deductions
In addition to the income tax, the following deductions may apply:
- Church Tax: 8 % or 9 % of the income tax, depending on the federal state
- Solidarity Surcharge: 5.5 % of the income tax, if the allowance is exceeded
The additional deductions are also calculated and withheld by the employer.
Important Notes on Income Tax Calculation
The income tax is withheld monthly by the employer and forwarded to the tax office. Trainees should regularly check their pay slips to ensure that the deductions have been correctly calculated. For any uncertainties, the tax office or a tax advisor offers assistance. If too much income tax has been paid during the year, a refund can be obtained by submitting a tax return.