Filing Taxes in Germany: Who’s obligated to file tax returns?

A tax return (Einkommensteuererklärung) is an annual declaration you submit to the German tax office (Finanzamt) to report your income and calculate your final tax liability for the year. Although employees pay income tax (Lohnsteuer) every month directly through their payslip, this is only an estimate. Your actual tax bill is settled once a year.

The result: many people have overpaid and are entitled to a refund. In fact, 9 out of 10 people who file a tax return in Germany get money back.

There are two types of tax return in Germany:

• Mandatory (Pflichtveranlagung): you are legally required to file
• Voluntary (Antragsveranlagung): you choose to file, usually to claim a refund

For employees with a single employer and tax class I (Steuerklasse I), filing a tax return is generally not mandatory. Your wage tax covers your liability. But there are many exceptions, and they apply to a large share of people living and working in Germany.

If none of the mandatory criteria apply to you, you can still file voluntarily, and in most cases, you'll get money back.

Do Foreigners and Expats Have to File Taxes in Germany?

Yes. Everyone who lives in Germany and earns income here is subject to the same tax rules regardless of nationality. If you're a resident (or have your habitual place of abode here), you are fully liable for German income tax (unbeschränkte Steuerpflicht).

There is one important exception to be aware of: if you also receive income from abroad, you may be subject to mandatory filing. Germany has double taxation agreements (Doppelbesteuerungsabkommen, DBA) with many countries to prevent you from being taxed twice, but you still need to declare the foreign income in your German tax return. It will typically be taken into account under the Progressionsvorbehalt (progression clause), which can affect your tax rate even if the income itself isn't taxed in Germany.

Mandatory Tax Return: When You Are Required to File 

You are legally required to file an income tax return in Germany if any of the following applies to you:

Details on the most common mandatory situations:

Side income above €410/year 

Do you have taxable additional income from renting out a property, freelance work, or income from abroad? If the total from such sources exceeds €410 per year, you must declare it in your income tax return.

Wage replacement benefits (e.g. unemployment benefit, parental allowance, sick pay) 

If you received more than €410 in wage replacement benefits during the year, such as Arbeitslosengeld I (unemployment benefit), Elterngeld (parental allowance) or Krankengeld (sick pay), you are required to file. These benefits are tax-free themselves but are subject to the Progressionsvorbehalt: they raise your effective tax rate on your other income.

Two or more simultaneous employers 

If you work for more than one employer at the same time, your second employer will apply tax class VI (Steuerklasse VI) to your income. This means you are obligated to file a tax return.

Tax class combination III/V or IV/IV with factor 

If you and your spouse or registered civil partner have chosen the tax class combination III/V, or IV/IV with a factor , you are required to file, provided the partner in tax class V has received wages. The same applies if you opt for individual assessment and have not applied for half of the training allowance or disability allowance for your child .

Wage tax allowance (Lohnsteuerfreibetrag) entered 

If you applied for a wage tax allowance at your tax office and your income exceeds €13,150 (single) or €24,950 (married couples filing jointly) in 2025, you must file a return to verify your actual expenses.

Change of employer ('S' in the annual payslip) 

If you changed jobs during the year and received special payments such as a Christmas bonus, your new employer may not have taken the previous employer's values into account. In this case, you will find the letter 'S' on your annual payslip (Lohnsteuerbescheinigung), and you are required to file.

Loss carried forward (Verlustvortrag) 

If you have a tax loss from previous years, it is offset against your current taxable income. You must file a return to apply this.

Untaxed capital gains 

If your investment income (from shares, interest, dividends) exceeded €1,000 and your bank has not yet deducted withholding tax – for example, because the account is held abroad – you must declare this.

Voluntary Tax Return: When It's Worth Filing Even If You Don't Have To 

Not required to file? You can still submit a voluntary tax return, and it's almost always worth it. You have up to 4 years to file retroactively (e.g., in 2026, you can still file for 2022).

Common reasons people get a refund:

• Home office deduction (Homeoffice-Pauschale): up to €1,260/year 
• Commuting allowance (Pendlerpauschale): €0.38/km 
• Work-related training and education costs
• Health and pension insurance contributions
• Relocation costs (especially relevant for expats moving to Germany)
• Double household costs (doppelte Haushaltsführung) — relevant if you maintain a home abroad

Filing your German tax return doesn't have to be complicated. Here's how it works:

1. Gather your documents: You'll need your Lohnsteuerbescheinigung (annual employment tax statement), your Tax ID (Steuerliche Identifikationsnummer), your IBAN, and receipts for any deductible expenses.
2. Choose your filing method: You can use the government portal ELSTER, a guided tax app like Taxfix, or a licensed tax advisor (Steuerberater*in).
3. Fill in the correct forms: The main form is the Mantelbogen (cover sheet). Depending on your situation, you'll add Anlagen (annexes) for employment income, rental income, etc.
4. Submit before the deadline: See the deadlines section below.
5. Receive your Steuerbescheid: Once processed, the tax office sends you a tax assessment notice. If you're owed a refund, it's paid directly to your bank account.

Ways to File Your Tax Return in Germany:

• Tax ID (Steuerliche Identifikationsnummer): a permanent 11-digit number assigned to everyone registered in Germany
• Annual employment tax statement (Lohnsteuerbescheinigung) provided by your employer, usually in January
• German bank account IBAN for your refund payment
• Receipts for deductible expenses: home office, commuting, work-related training, professional equipment, etc.
• Health insurance contribution statements (Krankenversicherungsbeiträge)
• Rental income documents (if applicable)
• Foreign income documentation (if applicable), including proof of tax paid abroad

Missing the deadline can result in penalties. Here's a clear overview for the 2023–2025 tax years:

German Tax Return Deadlines at a Glance

What Happens If You Miss the Tax Return Deadline?

If you are required to file and miss the deadline, the tax office can charge a late filing penalty (Verspätungszuschlag) of at least €25 per month (or part thereof) that the return is overdue, up to a maximum of €25,000. In serious cases, the tax office may also estimate your tax liability.

If you need more time, you can apply for an extension or use Taxfix Expert , which automatically extends your deadline by several months.