German Tax Return for Expats: Who Must File, Deadlines and What You Can Deduct

How tax works for employees in Germany

If you are employed in Germany, your employer deducts wage tax (Lohnsteuer) from every payslip and pays it to the tax office. That monthly deduction is an estimate based on your tax class and a few flat allowances. The annual income tax return (Einkommensteuererklärung) is where the tax office settles the real amount: it adds up all your income for the calendar year, subtracts your actual costs and allowances, and refunds or collects the difference.

For most employees the result is a refund. According to the Federal Statistical Office, 13.2 million of the 15.2 million employees assessed for 2022 got money back, on average 1,240 euros; the most common refunds were between 100 and 1,000 euros¹⁴. About 1.8 million had to pay extra. To see how your monthly deduction is calculated, try the salary calculator or read gross to net salary in Germany.

Tax classes in brief

Your tax class (Steuerklasse) controls how much wage tax is withheld each month, not how much tax you ultimately owe³.

Married couples who choose III/V or IV with a factor must file a return, because the monthly withholding is only approximate for the household.

When expats must file a return

The mandatory cases for employees are set out in § 46 of the Income Tax Act¹. In plain words, you have to file if:

• you had other income without wage tax deducted, such as freelance work or rent, of more than 410 euros;

• you received more than 410 euros of income subject to the "progression clause" – for example unemployment benefit, parental allowance (Elterngeld), sick pay from your insurer or short-time work pay, or foreign salary earned in the year you moved to or left Germany²;

• you worked for two employers at the same time (tax class VI);

• you are married and used tax classes III/V or IV with a factor;

• an allowance (Freibetrag) was entered for your wage tax deduction;

• the tax office sends you a letter asking you to file.

If none of these applies, filing is voluntary. You can still do it to claim a refund, and for many newcomers this is worth it.

Your first year in Germany

Arriving mid-year usually means too much wage tax was withheld. The payroll system assumes you earn your monthly salary for the whole year, so it deducts tax at a rate that fits a full year's income. In reality you only earned German salary for a few months, and your basic tax-free allowance – 12,348 euros for 2026¹³ – applies to the whole year.

The catch is the progression clause (Progressionsvorbehalt). Income you earned abroad before moving, while you were not yet resident in Germany, is not taxed in Germany. But it is used to work out your tax rate². In plain words: Germany asks, "what rate would this person pay if all of this year's income were taxed here?" and then applies that rate only to your German income.

**Example:** Priya moves to Munich on 1 July 2026. From July to December she earns 36,000 euros. From January to June she earned the equivalent of 30,000 euros in India. Her German tax is calculated only on the 36,000 euros (minus her costs), but at the rate that applies to roughly 66,000 euros. Because the foreign income is above 410 euros, she must file a 2026 return. She may still get money back – for example thanks to moving costs and the full-year allowance – but she should not expect a refund calculated as if she had earned only 36,000 euros.

Keep proof of your foreign income (payslips, foreign tax return or employer letter) and the exact date you registered your address in Germany. If you also kept a home or income in another country, a double taxation treaty may decide which country taxes what; in that case get advice.

Deadlines for 2025 and 2026

Without a tax adviser, a mandatory return is due seven months after the end of the year; with an adviser or a wage tax help association (Lohnsteuerhilfeverein), until the end of February of the year after next⁴. If the last day falls on a weekend or public holiday, it moves to the next working day⁵.

Voluntary returns can be filed up to four years back because of the four-year assessment period⁶; the Hessen tax administration confirms 31 December 2029 for 2025 returns⁷. If you have not yet claimed back tax for 2022, do it before the end of 2026. Late mandatory returns can cost a late filing surcharge of at least 25 euros per started month once the return is more than 14 months late⁸. Check your own date with the tax return deadline calculator.

Documents and typical deductions

Before you start, collect:

• your tax ID (see German tax ID) and, if you have one, your tax number;

• the annual wage tax certificate (Lohnsteuerbescheinigung) from every employer;

• proof of other income, benefits and foreign income;

• receipts for work costs, insurance, donations, childcare and tradespeople.

You do not normally send receipts with the return – keep them and hand them in only if the tax office asks.

Work costs only help once they exceed the 1,230 euro lump sum. A commuter driving 20 km on 210 days already reaches 1,596 euros – work it out with the commuter allowance calculator. Expats can often also claim job-related moving costs, German language courses needed for work, and the cost of applying for jobs.

How to file: ELSTER, apps or an adviser

The tax office's own portal ELSTER is free. Its interface can be switched to English and is machine-translated with DeepL, but the tax forms themselves are not translated¹⁵. Our step-by-step guide to ELSTER registration and login explains the activation letter and login options. Commercial tax apps file through the same interface; several offer full English guidance and are popular with expats, but usually charge a fee. A Lohnsteuerhilfeverein or tax adviser makes sense for complex years with foreign income, rentals or self-employment. Your local office can be found with the tax office finder.

After filing: the tax assessment

The tax office sends a tax assessment (Steuerbescheid). It is deemed delivered on the fourth day after it was sent¹⁶, and from then you have one month to lodge an objection (Einspruch)¹⁷. Compare the figures with your return and read the explanations at the end. An objection is free and can be filed through ELSTER or by letter; state clearly which item is wrong and add the missing proof. Refunds go to the German bank account you entered, so keep it up to date. If you also receive child benefit, see Kindergeld for expats; Blue Card holders can find residence topics under EU Blue Card.

Information current as of 6 November 2026.