Overview: The Great Divide
Germany and Poland share a border, EU membership, and strong economic ties. But their tax systems couldn't be more different. Germany is one of the highest-taxed countries in Europe, while Poland has embraced lower, simpler rates to attract workers and businesses.
Poland's Polish Deal reforms introduced a 12% base rate for most workers, while Germany's progressive system can take over 42% of income in taxes alone, plus social contributions. The difference in take-home pay is substantial.
Quick Comparison at €60,000 Salary
| Metric |
🇵🇱 Poland |
🇩🇪 Germany |
| Gross Salary |
€60,000 (~PLN 243,000) |
€60,000 |
| Income Tax |
~€5,800 |
~€11,500 |
| Social Contributions |
~€8,200 (ZUS ~13.7%) |
~€12,400 (~20.7%) |
| Health Insurance |
~€5,400 (9%) |
Included in social |
| Total Deductions |
~€19,400 |
~€23,900 |
| Net Take-Home |
~€40,600 |
~€36,100 |
| Effective Rate |
~32% |
~40% |
Key Insight
- Poland saves €4,500/year in taxes at €60k salary - that's nearly €40k over 10 years
- Germany's higher salaries partially offset the tax burden, but Poland is catching up fast
- Cost of living: Poland is 40-50% cheaper, magnifying the tax advantage
- Remote work opportunity: Earn German salary, pay Polish taxes (if compliant)
Tax System Comparison
Income Tax Brackets
| Feature |
🇵🇱 Poland |
🇩🇪 Germany |
| Tax System |
2 brackets (12%/32%) |
Progressive (14-45%) |
| Tax-Free Allowance |
PLN 30,000 (~€7,400) |
€11,604 |
| Base Rate |
12% |
14-42% (progressive) |
| Top Rate |
32% |
45% |
| Top Rate Threshold |
PLN 120,000 (~€29,600) |
€277,826 |
| Solidarity Surcharge |
4% (high earners, PLN 1M+) |
5.5% on income tax |
Poland Tax Brackets (2024/25)
| Income Band (PLN) |
Rate |
| 0 - 30,000 | 0% (tax-free allowance) |
| 30,001 - 120,000 | 12% |
| Over 120,000 | 32% |
Note: Health contribution (9%) is separate and not deductible from income tax since 2022
Germany Tax Brackets (2024/25)
| Income Band (EUR) |
Rate |
| €0 - €11,604 | 0% |
| €11,605 - €17,005 | 14% → 24% (progressive) |
| €17,006 - €66,760 | 24% → 42% (progressive) |
| €66,761 - €277,825 | 42% |
| Over €277,825 | 45% |
Note: Plus 5.5% solidarity surcharge on income tax (for higher earners)
Social Contributions Comparison
Social contributions significantly impact take-home pay in both countries:
| Contribution |
🇵🇱 Poland (Employee) |
🇩🇪 Germany (Employee) |
| Pension |
9.76% |
9.3% |
| Disability |
1.5% |
Included in pension |
| Sickness |
2.45% |
Included in health |
| Health Insurance |
9% |
~8.15% |
| Unemployment |
0% (employer pays) |
1.3% |
| Long-term Care |
N/A |
1.7-2.3% |
| Total Employee Share |
~22-23% |
~20-21% |
Poland's social contributions are slightly higher in percentage terms, but applied to typically lower salaries. Germany's contributions are similar but on top of much higher income tax rates.
Who Wins at Different Income Levels?
Average Worker (€35,000-€50,000)
Winner: Poland 🇵🇱 (Clear)
Poland's 12% rate versus Germany's 25-30% marginal rates at this level means significantly more take-home pay. Combined with Poland's much lower cost of living, disposable income in Poland can be 50-70% higher.
Professional (€60,000-€80,000)
Winner: Poland 🇵🇱
At €60k, you'd keep about €40,600 in Poland vs €36,100 in Germany - a €4,500 annual difference. Factor in 40% lower rent and you're dramatically better off in Poland.
High Earner (€100,000+)
Winner: Poland 🇵🇱
Germany's 42% rate kicks in at €66,761 and continues to €277k. Poland's 32% rate applies above ~€29,600, but this is still far lower than Germany's marginal rates. A €100k earner keeps roughly €65k in Poland vs €58k in Germany.
Investor / Passive Income
Winner: Poland 🇵🇱
Poland's flat 19% on dividends, capital gains, and interest beats Germany's 26.375%. Over a €100k investment portfolio generating €10k/year, you'd save €700 annually.
Small Business Owner
Winner: Poland 🇵🇱 (Strongly)
Poland's 9% corporate tax rate for small businesses (under €2M revenue) versus Germany's ~30% is dramatic. A business earning €100k profit keeps €91k in Poland vs €70k in Germany.
The Bottom Line
- Poland wins on tax at every level - it's not even close
- Germany's higher salaries help but don't fully compensate
- Cost of living: Poland is 40-50% cheaper, amplifying the advantage
- Remote workers: Earning German salary in Poland = massive arbitrage
Cost of Living Comparison
The tax difference is amplified by Poland's dramatically lower cost of living:
| Expense |
🇵🇱 Warsaw |
🇩🇪 Berlin |
| Rent (1BR City Center) |
~€700-900/month |
~€1,200-1,600/month |
| Rent (1BR Outside Center) |
~€500-650/month |
~€800-1,100/month |
| Groceries (Monthly) |
~€200-250 |
~€300-350 |
| Dining Out (Mid-range) |
~€10-15 |
~€15-25 |
| Public Transport (Monthly) |
~€30 |
~€86 |
| Overall Index |
40-50% cheaper |
More expensive |
A €60k salary goes much further in Warsaw than in Berlin. Combined with lower taxes, the real purchasing power difference can be 50-70% in Poland's favor.
Real-World Tax Savings
Here's how much more you'd keep annually in Poland vs Germany:
| Gross Salary |
Poland Net |
Germany Net |
Poland Advantage |
| €40,000 |
~€29,500 |
~€26,800 |
+€2,700/year |
| €60,000 |
~€40,600 |
~€36,100 |
+€4,500/year |
| €80,000 |
~€51,500 |
~€45,200 |
+€6,300/year |
| €100,000 |
~€62,000 |
~€54,000 |
+€8,000/year |
Over a 10-year career at €60k, you'd save approximately €45,000 in taxes alone by choosing Poland over Germany - not counting the lower cost of living.
Calculate Your Exact Tax
See Your Personal Take-Home Pay
Use our free calculators to see exactly how much you'd keep in each location with your actual salary.
Compare All 30 Countries