Salary & Taxes

Severance pay calculator Germany

The calculator shows how the fifth rule can typically change the tax burden on your severance payment.

Updated on Apr 21, 2026 Calculator, calculation path and examples on one page

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Calculator

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Related guide: Gross and net salary in Germany – taxes, social charges and the payslip explained

Examples

Typical calculations

30,000 euros severance payment with 45,000 euros of taxable income.

Middle income

Net severance payment: €19,672.32

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10,000 euros with an income of 35,000 euros.

Smaller severance payment

Net severance payment: €6,972.88

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Greater severance pay for an already high income.

High income

Net severance payment: €29,000.00

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FAQ

Frequently asked questions

What is the rule of fifths?

It distributes the tax effect of a one-off severance payment into five parts and can mitigate the progression.

Do I always save taxes this way?

Not always. The effect depends heavily on your other income.

Are social security contributions included?

No. Severance payments are often exempt from social security, and the calculator only considers the rough income tax effect.

Which value do I have to enter?

Please include taxable income without severance pay, not gross wages.

Why is the result just an estimate?

Because church tax, special expenses and other tax details can change the actual notice.

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Sources and notes

Rule status and context

basis
Simplified tariff income tax 2026 according to Section 32a EStG and comparison with the fifth rule according to Section 34 EStG.