This guide shows real ways to save money in Germany.
Taxes and social contributions
Most employees pay 35% to 50% of their income in taxes, health insurance and pension contributions. There are ways to pay less.
Health insurance
Your
You pay a bit more for
Base cost
Total
You are covered by your spouse's health insurance.
You are covered by your parents' health insurance.
You are covered by your health insurance in another EU country.
Public pension
Your employer pays
You pay
Unemployment insurance
Your employer pays
You pay
Income tax
This is the
Taxable income
Income tax rate
Solidarity surcharge
If you pay more than
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The solidarity surcharge is {{ formatPercent(taxes.solidarity.maxRate * 100) }} of your
Church tax
Your church collects a
Your income is too low to pay income tax, so you don't pay church tax.
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This is what you pay for all taxes and social contributions. They take this from your paycheck.
You keep {{ formatPercent(disposableIncomeRatio) }}
This is your
How to pay less income tax
- Make a tax declaration
A tax declaration lets you deduct expenses from your income. This makes your taxable income smaller, so you pay less income tax. Relocation costs, business expenses, commuting, pension payments, insurance and healthcare are tax-deductible. Tax software is the cheapest way to make a tax declaration. - Save for retirement
Pension contributions are tax-deductible. Contributing to your pension is a type of tax deferral. It helps you pay less income tax over your lifetime.
How to pay less for health insurance
Use my health insurance picker to see your options. Ask my insurance broker to help you find cheaper health insurance. This is a free service.
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It helps us calculate prices and recommend the right health insurance.
Free health insurance
You can get free
Public health insurance
You make less than
If you can't get free health insurance, it costs
You must choose an insurer. There are dozens of options, but their cost and coverage are almost the same.
Cost explanation
You pay the {{ tarifName }} tarif.
Your health insurance costs a percentage of your income. Your employer pays half of it.
Your health insurance costs a percentage of your income.
Your health insurance has a fixed price.
You pay the
Base cost
You have a minijob, so you pay the
Insurer surcharge
Insurers can charge more for better services. Each insurer has a different surcharge. The average surcharge is {{ formatPercent(healthInsurance.avgZusatzbeitrag * 100) }} of your income.
Long-term care insurance
You pay the
Your employer pays
You are self-employed, so you don't get help from an employer.
When you make less than
You are unemployed, so you don't get help from an employer.
When you have a
Your employer pays half of your health insurance.
Your employer pays part of your health insurance.
You pay /month
This is what you pay for public health insurance.
You make more than
Private health insurance
You can't choose
If you are young and well-paid,
You can get
You can choose
Other options
- Use your EHIC card
If you come from another EU country, you can use your European Health Insurance Card (EHIC) in Germany. You might not need German health insurance. - Switch to private health insurance
It can be better and cheaper than public health insurance. I save around €600 per month. This is a complex decision, and it can be an expensive mistake. Ask my insurance expert if private health insurance makes sense for you. - Choose a different public health insurance
Pick an insurer with a lower Zusatzbeitrag. You can save up to €500 per year. - Join the Künstlersozialkasse
If you are a freelance artist, publicist or art teacher, join the Künstlersozialkasse (KSK). They pay half of your health insurance, and half of your pension insurance. It’s always worth it.
How to pay less pension insurance
- Join the Künstlersozialkasse
If you are a freelance artist, publicist or art teacher, join the Künstlersozialkasse (KSK). They pay half of your health insurance, and half of your pension insurance. It’s always worth it. - Get a pension payments refund
If you leave Germany, you can sometimes get your pension payments refunded. You can get thousands of euros back.
How to pay less church tax
- Leave the church
If you leave the church, you stop paying the church tax. You can save a few hundred euros per year.
Housing
Rent
- Lower your rent
If your rent is above the legal limit, you can get it reduced. Use a rent limit calculator to check if you pay too much. A Mieterverein, Conny, or a lawyer can reduce your rent. You can save a few hundred euros per month. - Know your rights
Avoid housing scams. If you pay a bribe to get an apartment, or pay too much for a kitchen or furniture, you can get that money back. Talk to a Mieterverein or a lawyer. - Find a cheaper apartment
If you already have a place to live, you have more time to find something cheaper.
Where to ask apartment questions
Utilities
- Change electricity and gas providers
Energy companies give rebates to new customers. When the rebate expires, switch to another company.1 Do this every year before your contract renews. You can save around €100 to €200 per year. Use Verivox or Check24 to find another energy company. - Stop paying the TV tax
When you receive financial aid (Bürgergeld or BAföG), fill this form to stop paying the TV tax.
Transportation
- Get the Deutschland Ticket
It’s the cheapest monthly ticket, and it lets you use public transit everywhere in Germany. - Get a yearly ticket
If you can’t get the Deutschland Ticket, get a yearly subscription from BVG or the Deutsche Bahn. Yearly tickets are cheaper than monthly tickets. - Get a student ticket
If you are a student or an apprentice, get a student ticket. It’s usually included in your school fees. - Don’t drive
In most cities, you don’t need a car. Buy a bicycle or use public transit instead. When you really need to drive, rent a car. - Save on car insurance
If you drive a car, there are many ways to pay less for car insurance. You can save a few euros per month.
Finances
- Choose a bank with low fees
Find a bank that has no monthly fee and no ATM fees. N26, ING and DKB are the most popular ones, but there are many other options. - Combine your insurance policies
If you get all your insurances from the same company, you sometimes pay less. Combined liability and household insurance can be cheaper.2 Don’t legal insurance from the same company, in case you need to sue the insurance company.3 - Talk to a financial advisor
If you have enough money to invest and save for retirement, talk to a financial advisor. Be careful; many of them are really bad. Choose one that works with immigrants, because your needs are different. My financial advisor is Seamus at Horizon65.
Other tips
- Pay yearly, not monthly
Car insurance, liability insurance, public transit and other subscriptions are cheaper if you pay yearly.4 - Compare prices often
Every year, before your contract renews, look for a cheaper option. You can get a better deal for electricity, gas, insurance, internet and mobile phone service. Tarifcheck, Check24 and Verivox are the main price comparison websites. They don’t show you all options. - Negotiate a better price
When your internet contract is about to expire, call the company and ask for a better price. They will renew your contract, but give you a better plan. Vodafone gave me a free upgrade from 100 Mbit/s to 300 Mbit/s.