Net (pay)

Netto (net) means "after deductions" – as opposed to gross ("before deductions"). Depending on the context, net refers to salary, prices or returns.

Net salary:

What remains of your gross wage after all taxes and social security contributions have been deducted – the amount in your account.

Example (tax class I, no church tax, Germany 2025):

• €2,500 gross: ~€1,815 net (73%)
• €3,500 gross: ~€2,300 net (66%)
• €5,000 gross: ~€3,050 net (61%)
• €8,000 gross: ~€4,570 net (57%)

Net prices:

• Net: price without VAT (relevant for business customers)
• Gross: price incl. 19% VAT (consumer price)
• Example: €100 net = €119 gross

Net returns:

• Gross return: before taxes and costs
• Net return: after flat-rate withholding tax (26.375%) and any costs
• Example: 3% overnight money interest gross = 2.21% net