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How incomes are distributed in Germany – are you one of the higher earners?

2023-03-10T18:29:10.055Z


The tax authorities regularly publish data derived from tax returns. Interesting classifications can be made from this for income.


The tax authorities regularly publish data derived from tax returns.

Interesting classifications can be made from this for income.

Precisely because everyone is talking about the current discussion about collective wage increases and the inflation rate, there is an increase in the visibility and level of income.

Figures are published as to when you are close to the poverty line or when your monthly income is considered rich.

It now seems interesting to get a basic breakdown of how income is distributed within the population.

The financial administration publishes income figures

The figures published by the tax authorities are of course based on the taxable income concept.

This means, on the one hand, the profits that entrepreneurs earn and, on the other hand, the income of private individuals with the four other types of income:

  • Income from non-self-employed work

  • Rental income

  • Income from capital

  • Other Income

The tax-deductible expenses associated with this have already been deducted from the income generated.

In the case of income from non-self-employed work, this can be the travel costs to work or, in the case of income from renting, the debt interest for a rented apartment.

On the other hand, pension expenses such as contributions to social security or extraordinary expenses such as medical expenses have not yet been deducted.

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The figures published by the tax authorities are based on the taxable income concept.

(icon picture)

© Annette Riedl/dpa

How income is distributed in Germany

Share in % of income

Annual income in euros more than

1 %

252,554

5%

126,219

10%

94.117

20%

65,939

30%

51,135

40%

41.207

50%

33,537

60%

26,512

70%

20,560

80%

12,868

If you take the total amount of income from your income tax assessment, you can classify which social class you are in.

For example, if this amount is EUR 252,554 or higher, you belong to the one percent of taxpayers with the highest taxable income.

And with more than 41,207 euros, according to the income distribution, one earns comparatively well. 

It is important to bear in mind that the figures from the tax authorities are prepared in such a way that married couples assessed together count as one person.

In total, the data from 47.43 million tax cases is included in the table.

This included 20.09 million people who were not assessed together.

Nine mistakes that will cost you a lot of money on your tax return

Nine mistakes that will cost you a lot of money on your tax return

How much does each taxpayer contribute to the tax?

The figures from the tax authorities also show how much each income bracket contributes to the total tax revenue.

The top one percent contributes 22.8 percent to the total income tax with their taxes.

The next layer from 2 to 4 percent contributes 20 percent and the layer from 5 to 10 percent contributes another 13 percent.

This means that the top 10 percent of income tax payers together pay 55.8 percent of the income tax due.

List of rubrics: © Annette Riedl/dpa

Source: merkur

All life articles on 2023-03-10

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