All you need to know about paying taxes in Germany

Do you need to file taxes in Germany?

Not all employees and residents are required to file taxes in Germany. In fact, in most cases you’ll only need to file a tax declaration if you’re hoping to get a return.

There are two examples of situations in which you might be able to forego the yearly stress of dealing with filing a declaration for your income tax in Germany.

• If you’re earning less than 9,000 EUR per year, or 18,000 if filing jointly, you’re not required to submit a tax declaration* (numbers as of 2018).
• If you’re an employee and your sole source of income is from one employer. 

Identify which German tax bracket you belong to

There are six possible classifications for your income tax in Germany. These classes will determine the tax rate you’ll pay on your salary each month. Check the table to see which one applies to you.

1. Single, widowed, divorced
2. Single parent
3. Married, the higher-earning spouse
4. Married, earning the same as your spouse
5. Married, the lesser-earning spouse
6. Working two jobs

For married expats, the Steueramt (Tax Agency) will usually classify both partners in Tax Class 4 by default, if no salary information is provided. However, it might be in your best interest to clarify which spouse earns more; you could be eligible for a larger tax rebate by adjusting your tax classes.
The majority of single expats paying taxes in Germany will be registered in Tax Class 1. However, if you’re earning money from more than one source, you’ll be in Tax Class 6.

Registering your income tax in Germany

Today, there are plenty of tools and resources to help expats file their taxes in Germany. If you’re the DIY type, try your hand at ELSTER, Germany’s online tax declaration tool. Like TurboTax or other self-service tax products, this is the simplest tool used by Germans to get their tax declaration filed. But if your German is a little rusty, you may prefer other programs. Check out Wundertax for an English solution – they offer a tool to make taxes for expats in Germany a little simpler. Taxfix.de offers the same.

If you’re not sure about filing them on your own, never fear. You’ve got two other options: you could get a private tax advisor (Steuerberater) or join the Lohnsteuerhilfeverein.

A tax advisor can offer you a more tailored solution but will often cost a bit more. However, if you have more specific questions, multiple sources of income or a complicated case, you might consider finding a Steuerberater to help you get your taxes filed.

If you’d like to have someone in your corner to answer your questions year-round, the local Lohnsteuerhilfeverein can get your taxes in Germany sorted and address all of your concerns. It’s an organization that helps its members with all sorts of tax-related issues, and you can become a member by paying a monthly fee based on your annual income. This option might be attractive if you’d like more support at a lower price.