A salary calculator (also known as a gross-to-net calculator) calculates how much net salary remains after deducting taxes and social security contributions from the gross salary. For HR professionals, it is an essential tool for salary negotiations, job postings, and calculating personnel costs. The calculation takes into account tax class, allowances, federal state, church tax, and social security contributions.
Definition: What Is a Salary Calculator?
A salary calculator is an online tool that determines net salary based on gross salary. It takes into account all statutory deductions: income tax, solidarity surcharge, church tax, and contributions to social insurance (pension, health, long-term care, and unemployment insurance).
The term is used synonymously with gross-to-net calculator, wage calculator, or net pay calculator. At their core, all these tools answer the same question: How much money actually ends up in your account at the end of the month?
For HR professionals, a salary calculator serves multiple functions: It helps prepare salary negotiations, advises applicants on realistic salary expectations, and calculates employer costs for budget planning.
How Does a Gross-to-Net Calculator Work?
What Input Is Required?
To correctly calculate net salary, a salary calculator requires the following information:
The gross salary forms the basis for calculation. This is the salary agreed upon in the employment contract before any deductions. You can usually choose between monthly and annual calculations.
The tax class (Steuerklasse) significantly determines the amount of income tax. In Germany, there are six tax classes based on marital status and life situation.
The federal state (Bundesland) is relevant because church tax varies regionally (8% in Bavaria and Baden-Württemberg, 9% in all other states).
Additionally, tax allowances such as child allowances are considered, as well as the type of health insurance (statutory or private) and the respective supplementary contribution of the health insurance fund.
What Deductions Are Calculated?
Two categories of deductions are calculated from the gross salary:
Taxes:Income tax is calculated according to the progressive income tax rate and depends on the tax class. The solidarity surcharge (5.5% of income tax) is only due in 2026 when income tax exceeds €20,350 for single persons. Church tax amounts to 8-9% of income tax and is only levied on church members.
Social Security Contributions (Employee Share):Pension insurance contributions are 9.3%, health insurance 7.3% plus the fund-specific supplementary contribution, unemployment insurance 1.3%, and long-term care insurance 1.7% (with children) or 2.3% (without children under 25). These contributions are only calculated up to the respective contribution assessment ceiling.
Tax Classes in Germany
Overview of the Six Tax Classes
The German tax system recognizes six income tax classes, regulated in the Income Tax Act (Einkommensteuergesetz, EStG):
Tax Class I applies to single, divorced, widowed, and permanently separated individuals without children.
Tax Class II is intended for single parents living with at least one child and entitled to the single parent relief amount.
Tax Class III is chosen by married sole earners or the partner with the higher income when the other partner has Tax Class V.
Tax Class IV is designed for married dual earners with similar incomes. The factor method can optionally be used.
Tax Class V is the counterpart to Tax Class III and is chosen by the partner with the lower income.
Tax Class VI automatically applies to a second employment relationship (secondary job).
Which Tax Class for Which Life Situation?
Important to understand: The tax class only affects the monthly income tax advance payment, not the actual annual tax liability. The annual income tax is the same regardless of tax class.
For couples with a significant salary difference (from approx. 60/40), the combination III/V can result in more monthly net income but often leads to additional payments when filing the tax return. The combination IV/IV makes sense for similar incomes and usually avoids additional payments.
Social Security Contributions 2026 Overview
Contribution Rates for Social Insurance
Social security contributions are shared equally between employees and employers. The current contribution rates for 2026 are:
*Childless individuals aged 23 and over pay a surcharge of 0.6%, borne solely by the employee.
SC = fund-specific supplementary contribution (average approx. 1.7% in 2026)
Contribution Assessment Ceilings 2026
Social security contributions are only calculated up to certain income thresholds. Income above these contribution assessment ceilings (Beitragsbemessungsgrenzen, BBG) remains contribution-free:
The BBG for pension and unemployment insurance in 2026 is uniformly €8,450 per month (€101,400 annually) across Germany.
The BBG for health and long-term care insurance in 2026 is €5,812.50 per month (€69,750 annually).
With an annual salary above the annual earnings threshold (€73,800 in 2026), employees can switch to private health insurance.
Salary Calculator for HR Professionals
Calculating Employer Costs
For personnel planning, the relevant figure is not the gross salary but the total employer costs. In addition to the gross salary, employers contribute:
The employer's share of social insurance (approx. 20-21% of gross), levies U1 (sickness), U2 (maternity), and the insolvency levy. As a rule of thumb: Gross salary × 1.20 to 1.25 = Total employer costs.
For a gross salary of €4,000, total costs of approximately €4,800 to €5,000 are incurred by the employer.
Preparing Salary Negotiations
During job interviews, it is helpful to be able to provide applicants with concrete net salary figures. A salary calculator enables you to:
Convert gross to net for different tax classes, compare different salary scenarios (e.g., for salary increases), and communicate the actual payout transparently.
Especially for applicants coming from other countries or entering the job market for the first time, a concrete net salary figure helps in assessing the offer.
Frequently Asked Questions About Salary Calculators
What Is the Difference Between Gross and Net?
Gross salary is the salary agreed upon in the employment contract before any deductions. Net salary is the amount that actually ends up in your account after deducting income tax, solidarity surcharge, church tax, and social security contributions. Depending on tax class and income, deductions can range between 30% and over 45% of the gross salary.
What Deductions Are Calculated From the Gross Salary?
Taxes (income tax, possibly solidarity surcharge and church tax) and social contributions (pension, health, unemployment, and long-term care insurance) are deducted from gross salary. The exact amount depends on the tax class, income, federal state, and individual factors such as children or church membership.
What Is the Basic Tax Allowance in 2026?
The basic tax allowance (Grundfreibetrag) in 2026 is €12,348 per year for single individuals. For jointly assessed married couples, a basic allowance of €24,696 applies. Income up to this amount remains tax-free to secure the subsistence minimum. The child allowance in 2026 is €9,756 per child.
What Are the Contribution Assessment Ceilings in 2026?
The contribution assessment ceiling for pension and unemployment insurance in 2026 is €8,450 per month (uniform across Germany). For health and long-term care insurance, a BBG of €5,812.50 per month applies. Income above these thresholds is exempt from further social contributions.
What Does an Employee Really Cost the Employer?
Total employer costs are approximately 20-25% above the gross salary. In addition to gross salary, employers pay the employer's share of social insurance plus levies. As a rule of thumb: Gross salary × 1.20 to 1.25 equals total costs.
When Is the Solidarity Surcharge Due?
Since 2021, the solidarity surcharge is only levied on higher incomes. The exemption threshold in 2026 is an income tax of €20,350 (single individuals) or €40,700 (jointly assessed couples). Those below this threshold no longer pay the surcharge. Above the threshold, it amounts to 5.5% of income tax.
How Does the Factor Method Work for Married Couples?
The factor method is an alternative to the tax class combination III/V. Both partners choose Tax Class IV with an individually calculated factor. This factor takes into account the income ratio of both partners and distributes the tax burden more fairly across both salaries. The factor method must be applied for at the tax office.
Conclusion
A salary calculator is an indispensable tool for HR professionals and employees to quickly and reliably calculate net salaries. The most important influencing factors are gross salary, tax class, federal state, and individual social security contributions. For personnel planning, calculating total employer costs is also relevant.
Please note: The results of a salary calculator serve as a guide. Actual payroll may differ due to individual factors such as capital-forming benefits, company pension schemes, or non-cash benefits.
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Disclaimer: All information is provided without guarantee. The calculations serve as guidance and do not replace individual tax advice. For specific questions, please consult a tax advisor.
Sources
- Income Tax Act (Einkommensteuergesetz, EStG). German Federal Government, 2026. https://www.gesetze-im-internet.de/estg/
- Program Flow Plans for Income Tax Deduction 2026. Federal Ministry of Finance (BMF), 2026. https://www.bundesfinanzministerium.de
- Contribution Rates and Reference Values for Social Insurance 2026. German Pension Insurance Federation, 2026. https://www.deutsche-rentenversicherung.de
- Social Code Book IV – Common Provisions for Social Insurance. German Federal Government, 2026. https://www.gesetze-im-internet.de/sgb_4/
- Gross-to-Net Calculator: How Much Remains of Your Salary in 2026. Stiftung Warentest, 2026. https://www.test.de/Brutto-Netto-Rechner
- Salary Calculator for Employers. AOK Employer Service, 2026. https://www.aok.de/fk/tools/rechner/gehaltsrechner/
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