3 ms·

> I pay 42% taxes no, your highest bracket is 42%, what's under that threshold is less taxed

pallas_athena 3y ago
https://www.brutto-netto-rechner.info/ https://www.brutto-netto-rechner.info/ put 5000€/month, Klasse 1, Berlin. Netto = 3094,05 €. That's 38,11%. 42% is not that far.
aetherson 3y ago
I mean, okay, but the 42% tax bracket in Germany starts at around 60k Euros. It certainly seems possible that a person who makes what we'd consider a fairly normal-for-HN amount of money is seeing an overall tax rate that's pretty close to 42%.
- BHSPitMonkey 3y ago
  Correct me if I'm wrong, but I think you'd have to be making well over €300k in order to have an effective tax rate above 40% there—normal for senior engineers at FAANG in the US maybe, but definitely not as normal for the same roles in Europe.
  - aetherson 3y ago
    I used a german tax calculator and put in a 200k Euro income and it told me my take-home would be 102k. I dunno if I screwed it up or anything -- I don't know a lot of German tax law.
    - wheels 3y ago
      €200k is not a normal developer salary in Berlin. In fact, it's more like 3x a normal salary. It doesn't make sense applying Silicon Valley salaries to other places.
      - aetherson 3y ago
        Okay, but on the other hand my parent poster made the claim that you'd need a salary of well over 300k to get an above-40% effective tax rate, and I notice that you don't seem to have taken issue with him. This feels like an isolated demand for rigor. The person who set off this thread made no claim to be a typical Berlin developer, he just said that he paid 42% taxes, and someone challenged that claim. If everyone's being super careful about using very precise language, fine, but that needs to be everyone being super careful about using very precise language, not just people you disagree with.
        wheels 3y ago
        Other people had already responded with what I'd have said. There was no need for me to chime in too.
  - FinnKuhn 3y ago
    ...unless you count Social security contributions as taxes, in which case you will reach 42% taxes a lot quicker, especially if you also account for the 50% your employer pays or you are self-employed.
ernst_klim 3y ago
Social charges are taxes. From 100k EUR you will receive only 58k if you are in class 1 in Berlin, so OP may be pretty honest ob that.
tsss 3y ago
And if you include the employer's tax contribution, sale tax, taxes on fuel, rent, electricity, etc. you are quickly approaching 70-80% of value produced going to the government in some way or another.

https://www.brutto-netto-rechner.info/ https://www.brutto-netto-rechner.info/ put 5000€/month, Klasse 1, Berlin. Netto = 3094,05 €. That's 38,11%. 42% is not that far.

aetherson 3y ago

I mean, okay, but the 42% tax bracket in Germany starts at around 60k Euros. It certainly seems possible that a person who makes what we'd consider a fairly normal-for-HN amount of money is seeing an overall tax rate that's pretty close to 42%.

BHSPitMonkey 3y ago
Correct me if I'm wrong, but I think you'd have to be making well over €300k in order to have an effective tax rate above 40% there—normal for senior engineers at FAANG in the US maybe, but definitely not as normal for the same roles in Europe.
- aetherson 3y ago
  I used a german tax calculator and put in a 200k Euro income and it told me my take-home would be 102k. I dunno if I screwed it up or anything -- I don't know a lot of German tax law.
  - wheels 3y ago
    €200k is not a normal developer salary in Berlin. In fact, it's more like 3x a normal salary. It doesn't make sense applying Silicon Valley salaries to other places.
    - aetherson 3y ago
      Okay, but on the other hand my parent poster made the claim that you'd need a salary of well over 300k to get an above-40% effective tax rate, and I notice that you don't seem to have taken issue with him. This feels like an isolated demand for rigor. The person who set off this thread made no claim to be a typical Berlin developer, he just said that he paid 42% taxes, and someone challenged that claim. If everyone's being super careful about using very precise language, fine, but that needs to be everyone being super careful about using very precise language, not just people you disagree with.
      - wheels 3y ago
        Other people had already responded with what I'd have said. There was no need for me to chime in too.
- FinnKuhn 3y ago
  ...unless you count Social security contributions as taxes, in which case you will reach 42% taxes a lot quicker, especially if you also account for the 50% your employer pays or you are self-employed.

ernst_klim 3y ago

Social charges are taxes. From 100k EUR you will receive only 58k if you are in class 1 in Berlin, so OP may be pretty honest ob that.

tsss 3y ago

And if you include the employer's tax contribution, sale tax, taxes on fuel, rent, electricity, etc. you are quickly approaching 70-80% of value produced going to the government in some way or another.