Subject area
Germany & Austria in numbers
Before anyone considers leaving, there is a calculation. This area does it — with stated reference figures rather than headlines.
People considering a move rarely do so because of one tax rate. What is at stake is the ratio of contribution to what is delivered in return — and that can be calculated rather than felt.
What you will find here
The burden side. How taxes and social contributions distribute across the income curve, where the marginal burden jumps, and how much of a pay rise actually arrives.
The return side. Government spending relative to what is delivered, the maintenance backlog in infrastructure, the cost of red tape for businesses, and the state of digitalisation.
The future side. The pension gap in both countries, the consolidation needed in public budgets, and the debate about compulsory insurance for the self-employed.
How we handle figures
Comparisons of the “X times the average” kind say nothing while the reference figure is missing. We name it — and we do not conflate the tax wedge with the net burden, because that is the most common trick used to manufacture outrage in this debate.
What this subject area is not good for
It delivers no decision. Whether leaving adds up for you depends on the kind of income you have, your family situation and your mobility — and the tax consequences of leaving are in a different subject area.
Articles in this subject area
- A 53.2% Marginal Burden: The Peak Sits at EUR 100,000 Germany’s marginal burden does not rise with income — it has two humps and two cliffs. For employees it peaks around EUR 100,000 gross, and in the transfer-withdrawal zone it exceeds 100 percent. On the marginal tax wedge Germany ranks only 15th in the OECD.
- A 38.7% Net Tax Burden: When Extra Work Stops Paying Germany ranks 2nd in the OECD on the tax wedge and 3rd on the employee-only burden. The ratio of the top-rate threshold to average earnings fell from 2.86 to 1.35 — while the threshold itself rose in nominal terms. What the figures support, and what they do not.
- Self-Employed in Germany: EUR 735.63 Pension Levy Recommendation 22 of the German pension commission: compulsory contributions with no opt-out for new founders, EUR 735.63 a month, EUR 8,827.56 a year — and the commission itself calls the effect "introduction gains".
- Savings Announced, Levies Enacted Germany plans EUR 110.8bn in net new borrowing for 2027 and adds plastic, sugar and tobacco levies. Austria saves EUR 5.1bn — the Fiscal Council sees an implementation gap.
- Leaving Austria: The 2026 Location Audit A 44.3% tax-to-GDP ratio, a 47% tax wedge, 19 corporate insolvencies a day — and the exit tax under § 27(6) EStG, due immediately for third countries like Georgia.
- German Tax Reform 2026: 47% Top Rate, 49.6% Marginal Burden A new 47% bracket, the 45% threshold cut to EUR 250,000, minijob flat tax up to 5%, health-insurance surcharge from 2028: what the July 2026 coalition deal means.
- Ad Disclosure: a EUR 37,803.50 Fine — Then Insolvency A EUR 36,000 fine from the LFK, EUR 37,803.50 in total, then insolvency: what the case teaches about ad disclosure under § 22 MStV and § 5a(4) UWG.
- World-Class Tax Burden, 17th Place in Digitalisation A 49.3 percent tax wedge on labour — second highest in the OECD. In the 2026 EU digital index Germany ranks 17th of 27, and 22nd on public administration.
- Austrian Aid: EUR 102 Million Is Decided at Home An ODA ratio of 0.31%, the largest item a mandatory EU contribution of EUR 463 million, only EUR 102.1 million decided at home — while 1.7 million are at risk of poverty.
- EUR 26 Billion in Aid: 7.8% to the Poorest Countries EUR 26 billion in ODA, only 39% from the development ministry budget and nearly 17% for in-donor refugee costs. All ten largest recipients are middle-income countries.
- Austrian Pensions: 86.8% Replacement Rate — Who Pays An 86.8% net replacement rate, but 27% of revenue comes from the federal budget, pensions absorb around 27% of all federal outlays — and retirement starts at 61.5.
- German Pension Gap: 53.3% vs 63.2% Replacement Rate Net replacement rate 53.3%, EUR 97.55 billion of federal subsidy in the 2026 budget, 764,065 people on basic old-age support — and contributions rising from 2028.
- Austrian Infrastructure: Rails Run, Municipalities Don’t 94.1% punctuality at ÖBB, EU-leading mobile coverage — but over half of the municipalities no longer cover their running costs and defer around EUR 1 billion.
- Repair Backlog: EUR 231.2bn — EUR 0 to Municipalities EUR 231.2bn investment backlog, 60.1% long-distance rail punctuality, second to last in the EU on fibre — and in 2025 the special fund paid municipalities nothing.
- Austrian Bureaucracy: EUR 20 Billion, 75 Trades Bureaucracy costs of 2.6 to 3.8% of GDP, 75 regulated trades, 722,875 compulsory chamber memberships — and almost 7% of staff capacity tied up in regulation.
- Bureaucracy: 96,876 Rules, 25% of a Founder’s Week EUR 64 billion in bureaucracy costs, 96,876 provisions in federal law, founders losing a quarter of their week — and EUR 150 million in real net relief since 2015.
- Government Ratio 50.3%: What the State Costs and Delivers A 50.3% government spending ratio, 101,283 insolvency proceedings, Europe’s priciest household electricity, the EU’s highest health spending with falling life expectancy.