A large proportion of taxpayers in Germany, both expats and German citizens, choose to submit an income tax return (Einkommensteuererklärung) to the Federal Central Tax Office every year. This page explains what you need to know about the tax return in Germany, and how to complete and submit one.
By submitting a tax return in Germany, you check that you have paid the correct amount of tax for the previous financial year. On average, nine out of 10 people who submit a tax return receive a refund.
You can complete your declaration on paper or online using software designed by the Federal Central Tax Office. The tax return is used by the tax office to balance out the amount of income tax you have paid with other financial aspects, such as:
Although many people choose to submit one in the hope of receiving a refund, generally if you are a waged employee subject to payroll tax it is not compulsory to submit a German income tax return.
You are, however, obliged to submit a tax declaration if any of the following apply to you:
Anyone - either foreigner or German national - is required to file a tax return in Germany if they reside in Germany and any of the above requirements apply.
Even if none of the above apply to you, you can still choose to complete a tax return if you have paid taxes in Germany and want to see if you're eligible for a (partial) refund.
If your financial situation is fairly simple (i.e. you are a waged employee with a few deductions to declare, such as work-related expenses and statutory insurance contributions), you can fairly easily complete and submit the correct tax declaration forms on your own. You will need a basic understanding of German (or a German-speaking friend who can help you) and to have prepared all the information and supporting documentation in advance.
If you want to keep things simple, there are also several online tax services, offered in both English and other languages, which can quickly and easily fill out the forms for you. If your case is more complex - for instance, if you run your own business or have multiple sources of income both in- and outside Germany - you may consider seeking help and guidance from a tax advisor.
Although it is still possible to download all the necessary forms, fill them out and then submit them to your local tax office, you can also complete your tax declaration online. This is done using the online tax office system ELSTER (Elektronische Steuererklärung), designed by the Federal Central Tax Office.
In order to correctly fill out your income tax return forms, you will need to prepare some information in advance. Most people will need to supply the following details in their forms:
No matter what your financial situation is, everyone completing the tax return will need to fill out a general tax form (Mantelbogen or Hauptvordruck). Depending on what kinds of income you have, you will also need to complete a varying number of additional tax forms (Anlagen).
There are three different kinds of general tax forms, which are all used to submit your basic personal details, such as your name, tax ID and job title. Which form you fill out depends on your personal situation:
You can usually use the simplified tax return for employees (Vereinfachte Einkoimmensteuererklärung für Arbeitnehmer - Mantelbogen ESt 1V) if any of the following apply to you:
For more complicated cases, however, you will need to fill out the tax return for individuals with unlimited tax liability form (Einkommensteuererklärung für unbeschränkt steuerpflichtige Personen - Mantelbogen ESt 1A). This is the correct form if any of the following apply to you:
If any of the above apply to you but your normal place of residence is not in Germany (defined as spending 185 out of 365 days outside Germany), you will need to fill out a tax return for individuals with limited tax liability (Einkommensteuererklärung für beschränkt steuerpflichtige Personen - Mantelbogen Est 1C)
There are many different additional tax forms. You need to fill out a separate form for each of the different kinds of income and expenditure that apply to you:
| Form | Used to declare |
|---|---|
| AUS | Foreign income (self-employed) |
| AV | Contributions to a Riester pension |
| G | Income from business enterprises |
| KAP | Income from capital (above tax-free allowance of 801 euros per person and 1.602 euros for married couples) |
| Kind | Dependent children, to claim child allowance |
| L | Income from agriculture and forestry |
| N | Income from paid employment; gross annual salary; work-related tax deductions (i.e. expenses or commuting costs) |
| N-AUS | Foreign income (employee) |
| R | Additional income, gross annual retirement benefits |
| S | Income from self-employed work |
| SO | Other income (e.g. income from property sales, alimony or child maintenance, compensation or damages) |
| U | Alimony or child maintenance payments |
| Unterhalt | Payments to dependent persons |
| V | Income from renting or leasing |
| Vorsorgeaufwand | Payments to health, pension, unemployment and care insurance schemes |
Filling out your tax declaration form will also require you to know your tax class (Steuerklasse). This is usually assigned to you by the tax office when you first register in Germany and is largely determined by your marital status. Your tax class will also be printed on the employment tax statement (Lohnsteuerbescheinigung) you receive from your employer. You can find out more about the tax classes and how to change tax class on our taxes in Germany page.
Most people submitting a tax return will take advantage of tax deductions in order to reduce their overall tax liability and increase the likelihood that they will receive a refund. Under the German tax system, it is possible to claim many different types of payments as tax-exempt. You can declare the following kinds of expenses in your tax return:
Each employee in Germany is entitled to an allowance of 1.230 euros in business deductions per year (1.000 euros for the years before 2023). If you can prove that your employment expenses exceeded this lump sum, they can still be deducted, as long as they are properly documented and haven’t already been reimbursed by your employer. This includes expenses incurred in the following circumstances:
For the years 2020, 2021 and 2022, employees who work remotely are allowed to deduct 5 euros for each full day worked from home - even if they do not have a separate "home office" - up to a maximum of 120 days or 600 euros per year. From 2023 onwards, the flate rate is 6 euros per day, up to a maximum of 210 days per year (1.260 euros).
Note, however, that this home office deduction forms part of the 1.230-euro flat rate outlined above, and so you will only really benefit if it, together with your other employment expenses, totals more than 1.230 euros.
Any contributions you make during the course of the year to compulsory insurance schemes are deductible, up to certain limits:
You can also make deductions for any costs resulting from the following:
If you have children, you are entitled to deductions and benefits to mitigate the cost of raising children. This includes:
Be aware that many of these categories have limits and strict rules. If you are unsure, a tax advisor can help you understand how to make use of exemptions, deductions and allowances to reduce your tax bill.
The German tax year runs from January 1 to December 31, the same as the calendar year. If you own your own business, however, you may be able to choose a different financial year, to coincide with your own business needs.
If you are obligated to submit a tax return, you can submit it any time between January 1 and July 31 the following year (i.e. July 31, 2022, for your 2021 tax return). If you need, you can also apply to your local tax office for an extension, which is usually granted automatically. If you use the services of a tax advisor, the tax office automatically extends the deadline to the end of the following February.
If you are submitting a tax return voluntarily, you can apply for refunds for up to the four previous years (i.e. in 2025 you can submit tax returns for 2024, 2023, 2022, and 2021).
The filing deadlines for tax returns in 2022 and 2023 were extended, as follows:
The filing deadline will return to normal for the 2024 tax year: July 31, 2025.
If you work with a tax advisor, the deadlines were also extended:
The "normal" filing deadline will apply again from 2025; if you are working with a tax advisor, you need to submit your 2025 tax declaration by Monday, March 1, 2027.
Between two and six months after submitting your return, you will receive a tax assessment (Steuerbescheid) from the tax office. This document informs you whether you can expect a refund (which will be paid directly into your bank account), or if you owe tax. If you owe tax you will be given around four weeks to pay.