Salary and taxes

Income tax

Subject to income tax is the income of natural persons (individuals or joint con-tractors in a partnership). If you are liable to income tax, the employer will di-rectly deduct the tax from your salary and transfer it to the state. The amount of taxes depends on different circumstances, e.g., on how much you earn and your family status.

Fellowships and grants are usually tax-free. The grant is intended to cover your living expenses and is not paid in return for any scientific activity. By accepting the grant, you do not become an employee of the Max Planck Society. The grant is not subject to income tax or to social security deductions.

If you receive a contract of employment, your income is subject to tax and social security deductions. Your gross income depends on your position (Postdoc, PhD student, etc.) and your work experience. The final net income varies according to the tax rate. Please ask the institute’s HR for detailed information.

Value Added Tax

The sales tax (also called VAT), which is systematically allocated to the posses-sion and transfer taxes (excluding VAT on imports), is in its economic effect a general consumption tax principally imposed on all private and public consump-tion (i.e. goods purchased by the end user and services rendered). In this way, it differs from the income or wage tax, which takes into consideration the indi-vidual performance of each taxpayer.

Depending on goods, VAT in Germany is 7 % or 19 %. All prices are usually tagged with VAT.

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