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DFW

(56,897 posts)
15. My tax rate in Germany is a de facto 52% more or less, plus 19% VAT on everything
Sun Jul 19, 2015, 07:24 AM
Jul 2015

That rate kicks in at less than $100,000 at current exchange rates. My younger daughter, who found a great, high-paying job there at age 25, is now paying over €100,000 a year just in income taxes. She was hoping to put some away, but it isn't anywhere near what she would have saved if she had been living in the States.

I pay about $750 a year vehicle tax, but that's on a 2013 BMW 530. We also pay about €2000 a year in property tax on about 1000 m² of land, way less than we'd pay in the States, but in the USA, no one is hit for 19% sales tax on everything. I have no German health insurance. Batteries not included there. It is not automatic no matter HOW much in other taxes they take from you. I can either get "private" insurance for about $3000 a month (yes, MONTH), or else continue to go through my US employer, which is what I do now. They disallow a lot of my medical expenses because they're from overseas, but I sure don't run up $36,000 a year either, and they ARE deductible from my German taxes. In Germany, they impose VAT on the gasoline tax--a double taxation that is illegal under German law, but no one has the money to fight it court, as it would require a Supreme Court decision to rescind it.

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