Need to file a German tax return? Claim your average refund of €1.240 with wundertax
Many expats in Germany assume tax returns are optional, something only freelancers need to worry about. In reality, German tax law requires many employees to file a tax return too, and missing this obligation can mean penalties. The good news: figuring out where you stand takes just a few minutes, and filing doesn't have to be complicated either.
Mandatory vs. voluntary tax returns
German tax law distinguishes between two types of tax returns: mandatory
(Pflichtveranlagung) and voluntary (Antragsveranlagung). If none of the mandatory criteria applies to you, filing is still worthwhile since nine out of 10 taxpayers who file voluntarily receive a tax refund. On average, taxpayers get around 1.240 euros back in their pocket.
When filing becomes mandatory
You are generally required to file a German tax return if:
- You are self-employed or a freelancer.
- You were taxed under tax class VI.
- You received wage replacement benefits over 410 euros, such as unemployment benefits (ALG I), parental benefits (Elterngeld), sick pay (Krankengeld) or maternity leave (Mutterschaftsgeld). Even though these are tax-free, they affect your tax rate through the Progressionsvorbehalt.
- You have supplementary income above 410 euros, such as rental income, capital gains not already taxed or foreign investment income.
- You applied for tax allowances (Lohnsteuerermäßigung) that reduced your wage tax deductions during the year.
- You are married and taxed under tax class combination III/V, or IV with a factor.
- You received a severance payment and want the tax-advantaged one-fifth rule (Fünftelregelung) to be applied by the tax office.
- You live abroad but have applied for unlimited tax liability in Germany.
- You reported a tax loss (Verlust) to the tax office.
If you're unsure which of these apply to you, your annual payslip (Lohnsteuerbescheinigung) is a good place to start as it lists your tax class and any relevant benefit codes.
What happens if you miss the deadline?
The deadline for mandatory 2025 tax returns is July 31, 2026. Missing it isn't just risky, it's costly. Late fees start at 0,25 percent of the tax owed, with a minimum of 25 euros per month. On top of that, the tax office can issue penalty payments and, if no return is filed, estimate your tax bill, usually at your disadvantage.
How wundertax makes filing taxes in Germany easy
This is where wundertax comes in. Built for expats, wundertax turns Germany's notoriously complex tax system into a guided, English-language questionnaire. You answer straightforward questions about your situation, whether you are employed, self-employed, married, or receiving income from abroad. Wundertax automatically fills out the correct forms and ensures you claim all relevant deductions, maximising your refund while staying fully compliant.
Along the way, plain-English explanations help you understand exactly what is being asked and why, and if you get stuck, wundertax's English-speaking customer support team is on hand to help quickly.
Get started today with wundertax
You can try wundertax for free and only pay when you are ready to submit. No paperwork pile-up, no guessing your way through German bureaucracy, just clarity, 100 percent in English, from start to finish. Don’t wait until the last minute or risk missing your obligation entirely!