Tax mechanics · Germany

Marginal tax rates: what a raise actually changes

A raise is taxed at your next-band rate, not your average rate. Here is how progressive brackets, contribution ceilings, and credits change the net effect.

People often reject a raise because they think the whole salary will be taxed at the next bracket. Progressive systems do not work that way. Only the slice of income inside a band is taxed at that band’s rate.

Marginal rate versus effective rate

Your marginal rate is the tax on the next unit of taxable income. Your effective rate is all income tax plus employee payroll contributions, divided by gross pay. The effective rate is almost always lower. GrossNetGuide shows both: the pay-mix chart is the effective split of the current salary; the salary curve shows how net pay changes as gross pay rises.

What a 5,000 raise is worth

If your next federal band is 22% and employee payroll contributions still apply, a 5,000 raise does not become 5,000 of extra cash. It also does not become 22% of your entire salary. The extra tax and contributions apply to the 5,000, and only while you remain in that band. Contribution ceilings change the picture: once US Social Security earnings reach the 2026 wage base, additional wages no longer take the 6.2% OASDI employee rate.

Credits and phase-outs

Credits can make the marginal rate higher than the published band. Canada’s basic personal amount phases down at higher incomes. The Netherlands general and employment credits taper. Ireland’s standard-rate band and tax credits mean a move from 20% to 40% income tax still leaves USC and PRSI on top. Germany’s formula tariff is continuous, so the marginal income-tax rate rises smoothly rather than in flat bands for much of the scale.

Bonuses are not a different tax

A bonus is additional annual taxable pay. Payroll may withhold a flat amount on the bonus cheque; that withholding is not the final tax. Annualize the bonus, add it to gross, and read the change in annual net. That is the figure to use when a recruiter quotes a target bonus.

How to use the calculator

Enter your current salary, then enter the new salary. The difference in annual net is the raise after published 2026 employee deductions. For Germany, the insights page also reports a marginal deduction rate on the next €100 at the configured earnings reference. Treat that as the change in modeled annual liability, not a payslip forecast.

grossnetguide
United States 2026 tax year
Language

Deutschland · Steuerjahr 2026

Brutto-Netto nach Steuerklasse und Land.

Income tax under EStG §32a, solidarity surcharge, and statutory social contributions for 2026. Set tax class, Bundesland, church tax, and health cover.

Made for clearer money decisions. Tax data: 2026 · U.S. state brackets: provisional 2025 · Cost data: community snapshots

Published 2026 tax-year rules · official sources linked below

01 — YOUR SCENARIO

Start with the offer

Live calculation

Federal single filer · 2026 IRS rules · add a state for state income tax

Enter a gross annual salary before deductions.

Cost of living · optional
＋Pay and work schedule
Bonuses and commissions
＋Tax profile · optional

Customize the German estimate if you know these details. The default profile is used otherwise.

Calculations run in this browser; account sync is optional.

Enter a salary to see take-home pay.

02 — YOUR TAKE-HOME

US · 2026

Take-home pay

$— / month

$— take-home per year

How gross pay is divided
In your pocket — Income tax — Payroll —

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More charts and details

Optional breakdown of tax bands, monthly cashflow, and effective versus marginal rates.

Monthly split of this salary

Effective rate versus top marginal rate

How taxable income is taxed

Top income-tax rates

Top marginal income-tax rates from the published tables in this profile. Payroll contributions and local taxes are excluded.

CountryTop rateSelection

Not tax advice. Rules vary by country, region, deductions, and payroll setup. Review the assumptions and official sources before making decisions. assumptions and sources

What’s included, and which sources?

The country models are starting-point estimates, not payroll calculations.

Estimates exclude individual credits and payroll adjustments and may differ from a payslip or tax return.

Tax references and data sources