What is Lohnsteuer?
Lohnsteuer is not a separate tax. It is the way income tax (Einkommensteuer) is collected on employment income. The employer calculates it from the tax class (Steuerklasse) and gross wage, withholds it and pays it to the tax office.
It is based on the income tax scale with the basic allowance (Grundfreibetrag) of €12,348 in 2026. Lohnsteuer paid in excess is settled through the annual tax return.
In practice
On a €4,000 gross salary in tax class I, the employer withholds Lohnsteuer and transfers it to the tax office; the exact amount depends on allowances.