Basics of the Solidarity Surcharge
The Solidarity Surcharge was introduced in 1991 to finance the costs of German reunification. It is levied as a percentage of income tax and is uniformly set at 5.5%. However, since 2021, a tax exemption threshold applies, meaning that the solidarity surcharge only applies to individuals with a higher tax burden.
Exemption Thresholds and Collection
The Solidarity Surcharge is only levied when the income tax payable exceeds a certain exemption threshold. The exemption thresholds are:
- 16,956 € annual income for single individuals
- 33,912 € annual income for married couples
As long as the income tax remains below the exemption threshold, no Solidarity Surcharge is applied. Since most trainees earn below this threshold, the solidarity surcharge is generally not levied.
Calculation of the Solidarity Surcharge
If the exemption threshold is exceeded, the Solidarity Surcharge is 5.5% of the income tax payable. An example:
- Annual income tax: 2,000 €
- Solidarity surcharge: 2,000 € × 5.5% = 110 €
The tax is collected monthly prorated through the payroll. The employer remits the Solidarity Surcharge along with the income tax to the tax office.
No Additional Burden for Trainees
For most trainees, the Solidarity Surcharge is not relevant, as their annual compensation usually falls below the exemption threshold. Even with a late start to the vocational training (Ausbildung) in the year, the taxable income decreases, thereby eliminating the tax burden and consequently the solidarity surcharge.
Important Notes on the Solidarity Surcharge
Trainees should regularly check their pay slips to determine if the Solidarity Surcharge was rightly applied. If it was paid despite not exceeding the exemption threshold, a correction can be requested from the employer or through the tax declaration. In many cases, a refund is possible if too much income tax was paid during the year.