Table 1: Graded tax system payroll taxes 2018

Grade

Annual wages

Payroll taxes contribution

Up to state pension age

State pension age and older, 
born in 1946 or later

1

up to and including € 20,142

36.55%

18.65%

2

€ 20,143 - € 33,994

40.85%

22.95%

3

€ 33,995 - € 68,507

40.85%

40.85%

4

€ 68,508 or more

51.95%

51.95%

For employees of the state pension age and older - born in 1945 or before - the following grades apply:

Grade

Annual wages

Payroll taxes contribution

State pension age and older, 
born in 1945 or earlier

1

up to and including € 20,142

18.65%

2

€ 20,143 - € 34,404

22.95%

3

€ 34,405 - € 68,507

40.85%

4

€ 68,508 or more

51.95%

The rate in the 3rd and 4th grade is fully composed of wage tax. The rate of the 1st and 2nd grade is composed as follows:

Grade

Type of contribution

Up to state pension age

State pension age and older

1

Old Age Pensions Act contribution

17.90%

Not applicable

Surviving Dependants Act contribution

0.10% 0.10%

Exceptional Medical Expenses Act contribution

9.65% 9.65%

Wage tax

8.90% 8.90%
total 36.55% 18.65%

2

Old Age Pensions Act contribution

17.90%

Not applicable

Surviving Dependants Act contribution

0.10% 0.10%

Exceptional Medical Expenses Act contribution

9.65% 9.65%

Wage tax

13.20% 13.20%
total 40.85% 22.95%

 


  

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