Marginal vs. Average Tax Rate 2025

The marginal tax rate indicates how much tax you pay on the next euro earned. The average tax rate shows what percentage of your total income you pay as taxes.

Example:

At €50,000 income: - Marginal rate: approx. 32% - Average rate: 19.9%

Why is the difference important?

For Salary Negotiations:

If you negotiate a €5,000 raise, you don't pay your average rate (19.9%) on it, but your marginal rate (32%).

Calculate now: To Tax Calculator