In English

German tax return for expats

New to Germany and not sure whether you need to file? This guide explains the basics in plain English: tax ID, ELSTER, deadlines, typical deductions and the German terms you will see on every form.

Most other pages on this site are in German. Auf Deutsch: Die erste Steuererklärung

Young woman who recently moved to Germany works on a laptop at a kitchen table, a half-unpacked moving box behind her

How it works

If you are employed in Germany, your employer deducts wage tax (Lohnsteuer) from every payslip. The annual income tax return (Einkommensteuererklärung) settles the difference between what was deducted and what you actually owe. Many employees get money back, especially in the year they arrive or leave, because they only worked part of the year.

Usually optional

One job, tax class I, no other income: filing is voluntary. You can file up to four years back.

Mandatory if

You are married with tax classes III/V, had two jobs, received parental or unemployment benefits over 410 €, had side income over 410 €, or foreign income relevant for the tax rate.

Tax ID and tax number

Tax ID (Steuer-Identifikationsnummer): 11 digits, issued once for life. It is sent by post a few weeks after you register your address (Anmeldung). It also appears on your payslip.
Tax number (Steuernummer): assigned by your local tax office after your first return or when you register as self-employed. It can change when you move.
Lost your tax ID? Request it again online from the Federal Central Tax Office (BZSt).

ELSTER: the free official portal

ELSTER is the tax administration's own online portal. It is free and accepted by every tax office. The start pages and help texts are available in English, the tax forms themselves are in German.

Register at elster.de with your tax ID and date of birth.
Wait for the activation code by post (1 to 2 weeks).
Download your certificate file and log in.
Enable Belegabruf to pre-fill your salary data.
Fill in the main form, Anlage N for employment income and any other annexes you need, then submit.

Step-by-step guides with screenshots (in German): ELSTER registrieren, Anlage N in ELSTER.

Deadlines

Situation	Deadline for tax year 2025
Mandatory filing, on your own	31 July 2026
Mandatory filing, with a tax advisor	1 March 2027
Voluntary filing	31 December 2029
Objection to a tax assessment	1 month after notice

All dates: Steuerkalender (German).

Typical deductions for expats

Commuting to work0.38 € per km

For each day you travel to your regular workplace, one way, from the first kilometre (2026).

Working from home6 € per day

Up to 210 days a year, no separate office required.

Relocation to Germanyactual costs

Moving costs for a job can be deductible, including a flat amount for other expenses. Costs directly connected with income that is tax-exempt in Germany are not deductible.

German language coursesusually not deductible

General German courses count as private living costs. Only a course needed specifically for your job may count; proof from your employer helps.

Work equipmentup to 952 € at once

Laptop, desk, specialist books. More expensive items over several years.

Double householdup to 1,000 € rent/month

If your family home stays abroad and you rent a flat near work.

Tax advisor feespartly

The share related to employment income counts as work-related costs.

Work-related costs only count once they exceed the employee allowance of 1,230 € per year. Figures for 2026.

Glossary German – English

German	English	What it means
Steuererklärung	Tax return	The annual return you file with the tax office.
Finanzamt	Tax office	Your local office, based on where you live.
Steuerbescheid	Tax assessment notice	The tax office decision after your return.
Einspruch	Objection	Formal appeal against a notice, within one month.
Lohnsteuer	Wage tax	Income tax withheld from your salary.
Lohnsteuerbescheinigung	Annual payroll tax statement	Your employer's summary of salary and tax withheld.
Steuerklasse	Tax class	Determines wage tax withholding, I to VI.
Werbungskosten	Work-related expenses	Costs you incur to earn your salary.
Sonderausgaben	Special expenses	Private costs the law allows, e.g. donations, insurance.
Außergewöhnliche Belastungen	Extraordinary expenses	E.g. medical costs above a reasonable share.
Freibetrag	Allowance	Amount that is not taxed.
Grundfreibetrag	Basic tax-free allowance	12,348 € in 2026.
Kirchensteuer	Church tax	8 or 9 % of income tax for church members.
Solidaritätszuschlag	Solidarity surcharge	5.5 % surcharge, only for higher incomes.
Zusammenveranlagung	Joint assessment	Married couples filing together.
Anlage N	Annex N	Form for employment income and expenses.
Anlage AUS	Annex AUS	Form for foreign income.
Progressionsvorbehalt	Progression clause	Tax-free income that still raises your tax rate.
Doppelbesteuerungsabkommen	Double tax treaty	Agreement to avoid being taxed twice.
Steuerberater	Tax advisor	Licensed professional for all tax matters.
Lohnsteuerhilfeverein	Wage tax assistance association	Membership-based help for employees and pensioners.
Abgabefrist	Filing deadline	Last day to submit your return.

Need help in English?

Tax advisors (Steuerberater) can handle any case. Wage tax assistance associations (Lohnsteuerhilfevereine) are a cheaper option for employees and pensioners without business income. Our directory lets you filter for advisors who work in English.

Find an English-speaking advisor

General information only, not individual tax advice. Reviewed by the steuern.org editorial team. Last updated October 2026.

Who has to file a German tax return?

Germany taxes you because you live here, not because you hold a German passport. You are a resident taxpayer (unbeschränkt steuerpflichtig) if you keep a home (Wohnsitz) in Germany or stay here on a regular basis (gewöhnlicher Aufenthalt). A continuous stay of more than six months normally makes you fully liable to tax.

As a resident taxpayer you report your worldwide income, including foreign salary, rent from property abroad and money from foreign accounts. Without residency you pay German tax only on income that has its source in Germany.

Filing is either compulsory (Pflichtveranlagung) or voluntary (Antragsveranlagung). One job with no extra income usually means you may file, not must. A second job, wage replacement benefits or self-employment make it a duty. Background: Wer muss eine Steuererklärung abgeben?.

Tax class, rates and basic allowances

Your employer keeps wage tax (Lohnsteuer) from your pay every month. How much depends on your tax class. Class I fits single people, class IV fits couples with similar earnings, and classes III and V split the burden for couples with different incomes. A change in your situation can lower the monthly deduction: Steuerklassen I bis VI.

The rate rises with your income. In 2026 the basic allowance (Grundfreibetrag) leaves 12,348 € of income untaxed, in 2025 it was 12,096 €. The top rate of 42 % applies above 69,878 € of taxable income and 45 % above 277,826 €. For married couples the allowance doubles under joint assessment (Zusammenveranlagung).

The solidarity surcharge (Solidaritätszuschlag) adds 5.5 % of your income tax, but most employees stay below the free limit of 20,350 € in 2026, or 19,950 € in 2025. Jointly assessed couples get twice these amounts. Church members also pay church tax (Kirchensteuer), which you can claim as a special expense.

Key figures for German income tax
Figure	2025	2026
Basic allowance (Grundfreibetrag)	12,096 €	12,348 €
42 % rate from taxable income	68,480 €	69,878 €
45 % rate from taxable income	–	277,826 €
Solidarity surcharge limit, single	19,950 €	20,350 €

Joint assessment doubles the basic allowance and the solidarity surcharge limits.

Deductions that lower your tax bill

Costs you incur for your job are Werbungskosten. Every employee receives a flat allowance (Arbeitnehmer-Pauschbetrag) of 1,230 € without a single receipt. Everything above that you prove with documents, for example tools, professional literature, union fees or application costs. Details: Werbungskosten and Anlage N.

Your commute counts as well. In 2025 you claim 0.30 € per kilometre for the first 20 km and 0.38 € from the 21st km. From 2026 the rate is 0.38 € from the first kilometre. The yearly cap is 4,500 €, unless you drive your own or a provided car. If you work from home, the home office flat rate gives you 6 € per day for at most 210 days: Homeoffice-Pauschale.

Insurance and pension contributions belong in the Anlage Vorsorgeaufwand and reduce your taxable income. Special expenses (Sonderausgaben) cover donations, church tax and maintenance payments; the tax office deducts a flat 36 €, or 72 € for couples. Childcare costs follow separate rules: Kinderbetreuungskosten.

How to file with ELSTER

Almost every return goes online through ELSTER. You register once and receive a personal certificate that signs your submission. The guide Mein ELSTER registrieren walks you through it.

The main form (Hauptvordruck) holds your personal data, while the Anlage N covers income from employment. Your employer, health insurer and pension provider already send most figures to the tax office. The Belegabruf pulls them into your draft, so you only check the numbers: Belegabruf in ELSTER.

Couples may file together, which often lowers the total through income splitting. Mandatory returns are usually due by 31 July of the following year; voluntary returns can be filed for up to four years. A tax advisor has a later deadline. Deadlines and extensions: Abgabefristen and Steuererklärung für Paare.

Foreign income, double taxation and letters from the Finanzamt

Double taxation agreements (Doppelbesteuerungsabkommen) decide which country may tax which kind of income. If Germany taxes your foreign earnings anyway, tax already paid abroad is generally credited against your German bill. Keep foreign payslips, statements and foreign assessments for years.

When the tax office (Finanzamt) writes and asks for a return, it treats your filing as mandatory. Such a letter sets a deadline of its own. Do not let it pass: ask for an extension in writing or hand the case to a tax advisor (Steuerberater) or a wage tax assistance association (Lohnsteuerhilfeverein). You can find support at Steuerberater & Lohnsteuerhilfeverein finden.

If you miss the deadline, the office may charge a late filing penalty (Verspätungszuschlag), later a penalty payment (Zwangsgeld), and finally estimate your income (Schätzung) on assumptions that rarely favour you. You may object to any assessment: an objection (Einspruch) must reach the office within one month of the notice. The notice counts as delivered on the fourth day after it was sent; a deadline on a weekend or holiday moves to the next working day. More: Einspruch gegen den Steuerbescheid and Muster: Einspruch.

Frequently asked questions

Do I have to file a German tax return as an expat?

It depends on your income and your situation. If you are a resident taxpayer with one job and no other income, filing is usually voluntary. A second job, self-employment, wage replacement benefits or a letter from the tax office turn it into a duty.

How long do I have to answer a demand from the tax office?

The letter sets a deadline of its own. Ask for an extension in writing before that period ends. If a tax advisor takes over, the filing deadline is extended and the office deals with the advisor instead of you.

What happens if I ignore the letter from the Finanzamt?

The office reminds you first, then charges a late filing penalty (Verspätungszuschlag). After further reminders it can set a penalty payment (Zwangsgeld) and finally estimate your taxable income (Schätzung). Such estimates rest on cautious assumptions, so they usually cost you more than a proper return.

Can I file my German tax return in English?

The official forms and most of the ELSTER interface are in German. Many expats therefore work with an English-speaking tax advisor (Steuerberater) or a wage tax assistance association (Lohnsteuerhilfeverein). An overview is on Steuerberater & Lohnsteuerhilfeverein finden.

Do I have to declare my foreign income in Germany?

If you are a resident taxpayer, yes. Worldwide income includes foreign salary, rental income, dividends and pensions. A double taxation agreement usually stops you from paying tax twice, and foreign tax can be credited against your German bill.

When is the deadline for the German tax return?

Mandatory returns are normally due by 31 July of the following year; voluntary returns can be filed for up to four years. With a tax advisor the deadline is later. If the tax office has asked you to file, always answer within the period stated in that letter.