As a self-employed in Germany, you are responsible for paying your income tax (Einkommensteuer) and social security contributions through your annual tax return (Einkommensteuererklärung).

The income tax calculation includes:

• Income Tax (Einkommensteuer): Progressive rates from 14% to 45%.

• Solidarity Surcharge (Solidaritätszuschlag): 5.5% of income tax (if applicable).

• Health Insurance (Krankenversicherung): Typically around 14.6% - 15.6% of income.

You may be eligible for a tax refund when:

• You've made advance tax payments (Vorauszahlungen), and your annual income was lower than anticipated.

• You qualify for tax deductions (e.g., business expenses, private pension contributions, donations to charity).

Our calculator includes these factors to estimate your tax liability and net income.