Key takeaways
- The average gross salary in Germany is 4,479€ per month as of 2023.
- The minimum wage in Germany is 13.9€ per hour (as of 2026).
- 0.1% of taxpayers earn more than 1 million euros annually.
- Germany’s top 1% earn more than 250,000 € gross per annum as of 2023.
- The top 15.8% in Germany earn more than 70,000€ gross per annum.
- A family of four needs 81,000 € per annum (as of 2026) before taxes to live comfortably in Germany
- A salary between 65,000 € and 81,000 € gross per annum is considered good in Germany as of 2026.
- The income threshold for risk of poverty is 16,536 € gross per annum (single) and 34,716€ gross per annum (couple with two kids) as of 2024.
Table of Contents
What is the income distribution in Germany?
Germany has a big income gap. On the one hand, 11.5% of taxpayers earn above 70,000€ per annum, while 11.2% earn below 5000€ per annum.
However, the number of people earning more has increased between May 2023 and June 2025. This is good news for the German economy and the tax office, as it will generate more tax revenue.
How much does salary tax contribute to the overall tax revenue of Germany? ->
The table shows the income distribution in Germany as of June 2025.
| Total income in euros | Nr. of Taxpayers* (as of May 2023) | Nr. of Taxpayers* (as of June 2025) | Percentage of Taxpayers May 2023 / June 2025 |
|---|---|---|---|
| 0 to 5,000 | 5,042,968 | 4,820,115 | 11.9 / 11.2 |
| 5,000 to 10,000 | 2,480,620 | 2,353,352 | 5.8 / 5.5 |
| 10,000 to 15,000 | 3,223,330 | 3,155,869 | 7.6 / 7.3 |
| 15,000 to 20,000 | 3,619,794 | 3,594,246 | 8.5 / 8.3 |
| 20,000 to 25,000 | 3,348,250 | 3,333,587 | 7.9 / 7.7 |
| 25,000 to 30,000 | 3,286,773 | 3,329,026 ⬆️ | 7.7 / 7.7 |
| 30,000 to 35,000 | 3,027,466 | 3,094,180 ⬆️ | 7.1 / 7.2 |
| 35,000 to 40,000 | 2,721,753 | 2,794,992 ⬆️ | 6.4 / 6.5 |
| 40,000 to 45,000 | 2,304,685 | 2,395,727 ⬆️ | 5.4 / 5.6 |
| 45,000 to 50,000 | 1,911,839 | 1,985,854 ⬆️ | 4.5 / 4.6 |
| 50,000 to 60,000 | 2,924,626 | 3,044,466 ⬆️ | 6.9 / 7.1 |
| 60,000 to 70,000 | 2,058,385 | 2,147,178 ⬆️ | 4.8 / 5.0 |
| 70,000 to 125,000 | 4,674,326 | 4,951,807 ⬆️ | 11.0 / 11.5 |
| 125,000 to 250,000 | 1,465,908 | 1,607,958 ⬆️ | 3.4 / 3.7 |
| 250,000 to 500,000 | 300,702 | 321,834 ⬆️ | 0.7 / 0.7 |
| 500,000 to 1,000,000 | 73,424 | 83,268 ⬆️ | 0.2 / 0.2 |
| 1,000,000 or more | 29,345 | 34,509 ⬆️ | 0.1 / 0.1 |
| In total | 42,494,194 | 100 |
Source: Destatis (as of June 2025)
What is the average salary in Germany?
The average gross salary in Germany is 4,479€ per month as of 2023. [1] It’s increasing consistently over time.
On average, men earn more than women in Germany. Men’s average salary is 4,702€, and women’s average salary is 4,000€ as of 2023. So, men earn 17.55% more than women in Germany.
The income gap between men and women has increased from 15.5% in 2021 to 17.55% in 2023.
The income disparity is also among German citizens and expats in Germany. The median salary of a German is 3,945€ per month, and that of an expat is 3,034€ as of 2023. [2]
How much do the top 1% in Germany earn?
Germany’s top 1% earn more than 250,000 € gross per annum. If you dig deeper, you’ll find that 0.7% of taxpayers earn between 250k and 500k. 0.2% earn between 500k and 1 million euros.
Only 0.1% or 34,509 taxpayers earn more than 1 million euros annually.
If you earn more than 277.8k per annum, you fall under Germany’s highest tax slab of 45%. You can learn about the expenses you can deduct to save taxes in Germany here.
Highest earning professions in Germany ->
Cheatsheet to Save Taxes – Free Download
- Download the cheatsheet summarizing all the expenses you can deduct from the taxes.
- Maximize your tax savings by claiming expenses you don’t need proof of.
- Moved due to work, bought a new chair, repaired your rental apartment, etc. Claim all these expenses to save tax.
How much do the top 15% in Germany earn?
The top 15.8% in Germany earn more than 70,000€ gross per annum. Earning more not only gives you more purchasing power but also opens doors for better healthcare in Germany.
If you earn more than the income threshold, i.e., 77,400€ (as of 2026), you are eligible to get private health insurance in Germany. Private health insurance offers the best medical coverage in Germany.
We recommend getting private health insurance via an insurance broker. They are experts and can help you find the best plan for your needs. You can book a call with an insurance broker we recommend here.
Book a free call with an insurance expert
- Occupational disability insurance is a complicated product. There are several factors that must be considered before deciding which plan is best for you. An expert can guide you and help you pick the best option for you.
- An Insurance broker is liable for their advice. This means if the policy they recommended doesn’t offer the coverage you requested, they are liable to pay the damages incurred in the future.
How much should you earn to live comfortably in Germany?
On average, a family of four needs 4650€ per month to live comfortably in Germany (as of 2026). A single person needs around 1700€ per month. [2]
This means you must earn at least 55,800 € per annum (family) or 20,000€ per annum (single) after tax to live comfortably in Germany. This converts to 81,500 € (family) and 26,000 € (single) gross annually.
What is the minimum wage in Germany?
The minimum wage in Germany has increased from 12.82€ per hour in 2025 to 13.9€ per hour (as of 2026). This is around 2,409 € per month or 28,908€ per annum for a work contract of 40 hours per week. [3]
The minimum wage ensures you earn enough to access all the basic needs in Germany. The basic tax-free allowance in Germany is 12,348€ (in 2026)
Thus, your net income will be 21,840€ per annum (Tax class 1) and 22,692€ per annum (Tax class 3) if you earn the minimum wage in Germany and have no kids.
What salary is considered good income in Germany?
A salary between 65,000 € and 81,000 € gross per annum is considered good in Germany as of 2026.
If you are single, you can live with ease anywhere in Germany.
A family of four with a family income in this range can also live with ease. However, it’ll be difficult for them to save money.
So, if you are planning to move to Germany, your package should be within this range or above.
What is considered low income in Germany?
Anyone earning less than 16,536 € gross per annum (single) and 34,716€ gross per annum (couple with two kids) is at risk of poverty in Germany as of 2024.
More topics
