Taxable Income (zvE) – Simply Explained
Taxable income is the basis for calculating your income tax.
What is taxable income?
Taxable income is your total income after deducting all allowances, work-related expenses, and special expenses.
Formula:
Taxable Income = Gross Income - Work Expenses - Special Expenses - Extraordinary Burdens - Allowances
From Gross to Taxable Income – Step by Step
Step 1: Total Income
Add all types of income.
Step 2: Deductions
Work-related expenses (minimum €1,230 flat rate)
Special expenses (pension, health insurance, donations)
Extraordinary burdens (medical costs, care costs)
Step 3: Allowances
- Basic allowance: €12,096
- Child allowance: €6,612 per child
Example Calculation
Gross salary: €50,000
- Work expenses: €2,500
- Special expenses: €3,000
- Basic allowance: €12,096
= Taxable income: €32,404
Calculate now: To Tax Calculator