3 ms·
UK has 40% tax on 50k pounds and Germany has 42% tax on the equivalent 58k euros, doesn't sound like big deal unless I'm missing something here.
by voqv 5y ago
UK has 40% tax on 50k pounds and Germany has 42% tax on the equivalent 58k euros, doesn't sound like big deal unless I'm missing something here.
- alibarber 5y agoWhat are the bands and allowances though? I moved from the UK to Finland - I was in the 40% bracket, but now I'm 'only' in the mid twenties (plus about 8% insurances / pension) - but in the UK the first 11K is 0 rated, whereas Finland gives you nothing.
- ipsi 5y agoTaxes are a lot more complex in Germany - you need to in add in social security charges (e.g., health insurance, nursing contribution, pension contribution, etc, etc), and you'll generally pay more in tax in Germany than you would for an equivalent number of pounds in the UK. I know, because that's what happened to me (I received a large enough pay rise to balance it out, so net income was the same either way). The exception is once you go over £100,000 and hit the brief 62% tax bracket (remember to include NI) - then it starts to equal out again.
- voqv 5y agoIt's the UK tax that is more complex for me as i'm not familiar with it. Isn't the NI more or less the equivalent of social security charges? But now I understand where my math is wrong - I got the UK tax brackets wrong. For Germany I took ~42% (actually 39%) as what the state will take from a 58k€ salary but in the UK the state will take 25% of the £50k salary (most of the income in the 20% bracket). That is indeed significantly less.