Einkommensteuer is a form of tax that is paid on income in Germany.

One of the main forms is Lohnsteuer which is taken directly out of your wages, but other forms of income such as dividends, rent, interest and some pensions are also taxed in this way.

There is a Freibetrag which is the amount you can earn without paying tax on it. How much this is depends on your tax class.

To hear a simple explanation and a short discussion in German, listen to the podcast:

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Disclaimer: this podcast is a simple explanation for non-native speakers. For tax advice, please contact a Steuerberater.

Tags: einkommenssteuer, income tax

Some other posts on this topic that you might like to read:

• Pendlerpauschale: or a taxing drive to work

This entry was posted on Wednesday, January 16th, 2008 at 12:19 am and is filed under German Words Explained, Podcasts, Tax. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.