Salary & Taxes

Severance pay calculator

The calculator shows how the fifth rule can typically change the tax burden on your severance payment.

Updated on Apr 21, 2026 Calculator, calculation path and examples on one page

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Calculator

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Calculation path

Step by step

  1. Tax without severance pay

    Formula: Tariff income tax on previous taxable income

    Result: €8,835.71

  2. Add a fifth of the severance pay mathematically

    Formula: zvE + severance payment / 5

    Result: €51,000.00

  3. Additional tax on a fifth

    Formula: Tax with fifth - tax without severance pay

    Result: €2,065.54

  4. Severance tax with fifth rule

    Formula: VAT × 5

    Result: €10,327.68

  5. Tax savings

    Formula: Tax without regulation - tax with regulation

    Result: €1,200.99

Instructions

How to use this calculator correctly

Inputs

  • Enter the severance payment and your taxable income without severance pay.

Read the result

  • You can see the tax effect with and without the fifth rule.
  • This makes it easier to classify the magnitude of the net severance payment.

Boundaries

  • For a binding tax assessment, you should consult your tax assessment or professional advice.

Related guide: Better understand gross and net

Examples

Typical calculations

30,000 euros severance payment with 45,000 euros of taxable income.

Middle income

Net severance payment: €19,672.32

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10,000 euros with an income of 35,000 euros.

Smaller severance payment

Net severance payment: €6,972.88

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Greater severance pay for an already high income.

High income

Net severance payment: €29,000.00

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FAQ

Frequently asked questions

What is the rule of fifths?

It distributes the tax effect of a one-off severance payment into five parts and can mitigate the progression.

Do I always save taxes this way?

Not always. The effect depends heavily on your other income.

Are social security contributions included?

No. Severance payments are often exempt from social security, and the calculator only considers the rough income tax effect.

Which value do I have to enter?

Please include taxable income without severance pay, not gross wages.

Why is the result just an estimate?

Because church tax, special expenses and other tax details can change the actual notice.

Related calculators

Continue seamlessly

Income tax calculator

Income tax is calculated from the taxable income according to the basic or splitting tariff.

Gross-Net Calculator

Convert monthly or annual gross into expected net and deductions for Germany.

Salary calculator

Monthly, annual and hourly perspective for your salary including rough employer costs.

Sources and notes

Rule status and context

basis
Simplified tariff income tax 2026 according to Section 32a EStG and comparison with the fifth rule according to Section 34 EStG.