Methodology

Calculation steps

Every country follows the same ordered sequence:

1. Social security contributions are computed on gross annual salary. Each contribution has its own rate, and many have a cap (the ceiling above which no further contributions are due). Some have a floor (contributions only apply on earnings above a minimum).
2. Deductible social contributions are subtracted from the gross to form the income tax base. Not all countries allow this: for example, Dutch volksverzekeringen are not deductible, while German Rentenversicherung contributions are.
3. Professional deductions (where they exist) are applied as a percentage of the post-SS gross, usually capped at a fixed maximum. Belgium, France, and Norway all use this structure.
4. Personal allowances and standard deductions are subtracted next to produce taxable income.
5. Progressive income tax brackets are applied to the taxable income.
6. Phase-out tax credits (Netherlands general and employment credits, Irish tax credits, etc.) reduce the raw income tax bill, with each credit phasing out at higher income levels.
7. Fixed credits (Czech Republic, Greece) are subtracted as a flat euro amount from the remaining tax.
8. Solidarity surcharges (Germany, Belgium, Luxembourg) are applied as a percentage on top of the income tax bill, above a threshold.
9. Rebates (India Section 87A) waive income tax entirely below a taxable income threshold, with a marginal relief taper just above the threshold to avoid a cliff edge.

Net take-home = gross minus all income tax minus all social contributions. The effective rate shown is total deductions divided by gross.

Tax year and data sources

Rates are sourced from official tax authorities and updated when significant changes occur. The Netherlands uses 2026 Belastingdienst rates. Germany uses 2026 BMF rates. The United Kingdom uses 2025/26 HMRC rates. The United States uses 2026 IRS parameters. Each country page notes its source and tax year at the bottom. Results for a given country may be slightly out of date if a mid-year change has occurred since the last update.

Netherlands specifics

The Dutch model reflects 2026 box 1 rates:

• Income tax brackets: 8.10% up to €38,883; 37.56% up to €78,426; 49.5% above.
• Volksverzekeringen (AOW/ANW/WLZ) at 27.65%, capped at €38,883. These are modelled separately as social contributions, not folded into the bracket rate.
• General credit (algemene heffingskorting): maximum €3,115, phasing out from €29,736 at 6.398% per euro.
• Employment credit (arbeidskorting): maximum €5,685 at €45,592 gross, phasing out at 6.51% above that level.
• The employer-paid Zvw health contribution (6.51%) is not shown, as it does not affect employee take-home pay.
• The 30% ruling for qualifying international employees is not modelled.

What is not included

• Sub-national taxes. Canadian provincial tax, US state tax, and Australian Medicare levy surcharge are omitted. Country pages note this limitation.
• Marital and family status. The model assumes a single adult with no dependents. Tax class (Germany), joint filing (US/FR), and child allowances change results significantly for families.
• Church tax. German Kirchensteuer and similar levies in Austria and Scandinavia are excluded as they are voluntary and depend on religious affiliation.
• Employer-paid contributions. These are costs to the employer, not deductions from employee pay, so they are not shown.
• Benefits, bonuses, and equity.Only regular salary is modelled.
• Special tax regimes. Dutch 30% ruling, Portuguese NHR, Malta non-dom, and similar regimes are excluded.
• Investment and self-employment income.Only employment income is covered.

Why results are estimates

Tax systems are complex and change frequently. Even a well-maintained model simplifies several edges: phase-out ranges may use a linear approximation; some credits use maximum values rather than the precise phase-in schedule; and employer contributions are not tracked. Results can diverge from actual payslips due to personal circumstances, employer pension contributions, voluntary deductions, and mid-year rate changes.

Use MyPayCalc to get a quick, directionally correct answer. For anything that will affect a real decision, verify the figures with the relevant tax authority or a qualified tax professional.