The first figure: how much you earn and how much is left
The average salary is around €48,000 gross a year, about €4,000 a month over twelve payments. Taxes and contributions come out of the gross, so the net usually ends up between 55% and 65% depending on the tax class and family situation.
That is the figure you pay everything else with. In Germany, offers are negotiated as gross annual salary, and comparing only the net of two countries without looking at contributions leads to budgeting mistakes.
Rent: the item that decides the city
Housing is by far the expense that most separates one city from another. For a two-bedroom flat, the usual ranges in 2026 go from about €700 to €1,000 a month in Leipzig or Dresden, €1,200 to €1,500 in Berlin or Hamburg, and €1,600 to €2,000 in Munich, the most expensive city.
Two rules are worth being clear about: the maximum legal deposit is three net rents, without extras, and the rent is paid unfurnished in most cases. A furnished flat is considerably more expensive, and contracts are almost always signed for an indefinite period.
Health insurance and contributions
Health insurance is compulsory. The public system costs around 14.6% of gross plus a supplement from each fund that averages around 1.7%, split equally between company and worker. The self-employed pay the full amount.
If the company hires you, it pays half and the contribution is deducted from your payslip. Public coverage includes family members at no extra cost, which is why most employees stay in the public system.
Utilities, food and the rest of the fixed expenses
Electricity and heating for a normal flat range from €150 to €300 a month depending on the type of housing and heating. Food for one person is around €300 to €400, and internet about €30 to €50.
There is a tax that surprises almost everyone: the Rundfunkbeitrag, €18.36 a month per household, to fund public broadcasting. You pay it whether you watch or not, no matter how many people live in the house.
For transport, the Deutschlandticket costs €58 a month from 2025 and covers all regional public transport in Germany. If you live in a city and don't use a car daily, you come out ahead.
The paperwork of the first few weeks
The Anmeldung is the piece that makes everything else work: without it there is no bank account or utility contract in your name in most cases. You need to book an appointment, sometimes with weeks of waiting in large cities, so it is worth booking it as soon as you have an address.
When employed, payroll taxation is handled by the company and your tax class is determined by your marital status. If you arrive on your own, you fall into class I, the simplest one.
Key points
- Anmeldung: address registration at the registration office, mandatory within the first 14 days
- Health insurance: mandatory registration before starting work
- Bank account: most banks require it to receive your salary and sign contracts
- Tax number: the IdNr arrives by post automatically after registration
