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Salary After Tax · Updated June 2026

Germany to US Relocation: Tax Calculator

Moving from Germany to the US inverts the usual expat math: your effective rate on the same salary typically drops 8–15 points (no solidarity layer, lower social charges, bigger deductions), but you trade the German safety net for US healthcare costs and gain a worldwide-reporting regime if you green-card.

Concretely at $120k: German effective burden ≈ 38–40% all-in; US single filer in Texas ≈ 22.3%, in California ≈ 28.3% – before the ~$620/month employer-plan health premium share re-enters the ledger.

Salary after tax calculator · 2026

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Where every dollar goes

    2026 rules: federal brackets, $16,100/$32,200 standard deductions, $184,500 SS wage base. Hourly figures assume 40 h/week × 52. Non-US figures are planning estimates incl. employee social charges.

    Key insights

    Key insights

    • Same salary: ~8–15 point effective-rate drop moving DE → US.
    • US healthcare premiums claw back part of the gain.
    • German funds become PFICs on US residency – restructure first.
    • Founders: check German exit tax on 1%+ shareholdings.
    • Dual-status first-year return; split-year German filing.

    Transition-year mechanics

    Germany exit: deregistration (Abmeldung) ends unlimited tax liability; the exit year files split-year treatment. Watch Wegzugsbesteuerung (exit tax) on 1%+ corporate shareholdings – the trap for founders, not employees.

    US entry: residency starts via green card or substantial presence; dual-status first-year returns are normal. Pre-arrival planning: realise gains while still German-resident (US basis step decisions), restructure PFIC-equivalent German funds before they become PFICs, and time bonuses across the split year.

    FAQ

    Frequently asked questions

    How much more take-home will I keep in the US?

    At $120k: Germany nets ≈ $71,815; Texas nets $93,250, California $86,087 (2026, single). Subtract ~$7,500/year typical employee health premiums for the honest comparison.

    When does US tax residency start?

    Green card: immediately. Visa workers: substantial presence (183-day weighted formula) – usually mid-first-year, producing a dual-status return that prorates worldwide taxation.

    What happens to my German investments?

    German/EU funds (UCITS) become PFICs under US rules – punitive taxation and Form 8621. Sell or convert to US-domiciled equivalents before the residency start date.

    Do I keep paying German social security?

    No – employment shifts you into US Social Security; the totalization agreement totals your German years for benefit eligibility on both sides at retirement.

    Is there a German exit tax?

    For ≥1% shareholdings in corporations, yes (Wegzugsbesteuerung deems a disposal). Plain employees with ETF portfolios face none – just the PFIC restructuring chore.

    Keep exploring

    Plan the whole move, not just one number.

    Every MovingCal tool shares the same 2026 dataset – carry your cities, salary, and countries from one calculator to the next.