Part of the topic: 💶 Taxes & salary
Severance pay tax calculator (Fünftelregelung)
How much tax will you pay on your severance payment? Enter your other taxable income for the year and the severance amount – we compare normal taxation with the one-fifth rule using the 2026 income-tax tariff.
Deadlines and pitfalls after a dismissal at a glance.
Voluntary support · Thank-you gift: our checklist PDF · Secure checkout via Digistore24 (Apple Pay, Google Pay, PayPal, card)
🔒 Runs entirely in your browser – nothing you enter is uploaded or stored.
How to use it
- Estimate your taxable income for the year without the severance (salary minus deductions, or from last year's assessment).
- Enter the severance amount and choose single or joint assessment and church tax.
- Compare the tax with and without the one-fifth rule.
Last checked: October 2026 · Based on: § 34 German Income Tax Act (one-fifth rule). Found a mistake? Use the form below – we fix confirmed errors and update the date.
Frequently asked questions
What is the one-fifth rule?
Extraordinary income such as severance is taxed as if it were spread over five years: tax = 5 × [tax(income + 1/5 severance) − tax(income)]. This softens the progression, especially when your other income is low.
Do I pay social insurance on severance?
Genuine severance for the loss of a job is generally free of social-insurance contributions. Back pay hidden in a severance is not.
When does the one-fifth rule help most?
When the rest of your income in that year is low – e.g. if you leave early in the year or are unemployed afterwards. With a high income it barely helps.