My tax card information says:
Tax rate 6,5 %
Additional withholding rate 26,0 %
Income ceiling for the remaining year ----
Tax card is valid 29.01.2021 to 31.12.2021
On this tax card, will I be paying tax on my income at the rate of 26% or 6%?
Tax card
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Re: Tax card
The base rate is used for income up to the income ceiling, additional witholding rate for any income exceeding that. Ultimately you will be taxed the same amount of euros, no matter which rates are used during the year.krapulassa wrote: ↑Fri Jan 29, 2021 3:46 amMy tax card information says:
Tax rate 6,5 %
Additional withholding rate 26,0 %
Income ceiling for the remaining year ----
Tax card is valid 29.01.2021 to 31.12.2021
On this tax card, will I be paying tax on my income at the rate of 26% or 6%?
Usually people want a fixed tax percentage throughout the year (as opposed to having to pay more tax towards the end), and therefore get a tax card for the annual income they expect to get. For freelancers and others without a steady monthly paycheck the annual earnings of course may be more difficult to estimate. Rest assured, each and every cent of tax will be collected, it's just a matter of when.
Re: Tax card
If you are employed, do not forget that you will receive less.krapulassa wrote: ↑Fri Jan 29, 2021 3:46 amOn this tax card, will I be paying tax on my income at the rate of 26% or 6%?
For tax calculator for 2021: "In addition to taxes, a pension insurance contribution of 7,15% and an unemployment insurance contribution of 1,40% is collected from your pay. If you want to calculate how much pay you have left after the taxes and charges, add 8,55% to your tax rate."