Negative Tax / SI Refund (Negativsteuer)

Definition

The Negativsteuer (also SV-Rückerstattung, social-insurance refund) is a credit for low earners whose income is small enough that no wage/income tax is due. When the computed income tax comes out below zero, 55 % of the social-insurance contributions are refunded, up to a yearly maximum. Key point: it is paid through the Arbeitnehmerveranlagung (annual tax return), not on the payslip, so it is not part of the monthly net shown in the calculator.

How it works

• Employees: 55 % of SI contributions are refunded, up to an indexed yearly cap (2024 reference: €487, roughly €608 with a Pendlerpauschale).
• Pensioners: 80 % of SI contributions, also capped (2024 reference: roughly €710).
• Zuschlag zum Verkehrsabsetzbetrag / SV-Bonus: at low incomes the Verkehrsabsetzbetrag rises (phased out over an income band), which also lifts the maximum refund.
• The caps are indexed: adjusted for inflation each year, the exact current values are published by the BMF.

Why it isn't in the net

The calculator models the payslip, i.e. what the employer settles and pays out each month. The Negativsteuer only arises in the Veranlagung after year-end and is credited by the tax office. The monthly net is therefore correct, the refund comes on top, via the tax return you have to file to claim it.

See also

• Einkommensteuertarif (§ 33 EStG) , why no wage tax is due below the first tariff bracket.
• Pendlerpauschale & Pendlereuro , raises the maximum refund for low earners.