If you are employed in Germany, income tax (Lohnsteuer) is paid every month – automatically through your employer. But that tax is only an estimate. With a tax return (Steuererklärung), the tax office works it out exactly, and especially in your first year in Germany you often get money back.
As of October 2026. This article is general information, not tax advice. Amounts and rules can change; for individual cases, ask the tax office (Finanzamt), a wage tax assistance association or a tax adviser.
In short: with tax class I, a tax return is usually voluntary but often worth it – especially if you started work mid-year, were taxed under class VI for a while, or commute. Since 2026 the commuter allowance (Pendlerpauschale) is 38 cents per kilometre from the first kilometre. You can file free of charge via ELSTER, and voluntarily up to four years back.
Who has to file a tax return
You are required to file if, among other things:
- you are married and have tax classes III/V or IV with factor,
- you had several jobs at the same time (tax class VI),
- you received more than €410 in wage replacement benefits, such as sick pay from your health insurer (Krankengeld), unemployment benefit or short-time work allowance,
- you had additional income of more than €410,
- the tax office asks you to file.
Single people with one job and tax class I are generally not required to file – but may do so voluntarily.
When it is especially worthwhile
- Starting work mid-year: tax is calculated as if you earned that salary all year. If you started in May, for example, you have often paid too much.
- Temporarily in tax class VI: for instance because your employer did not yet have your tax ID.
- Commuting: with the commuter allowance you quickly exceed the flat-rate allowance (see below).
- Moving to Germany for the job or keeping a double household.
- Unpaid breaks during the year, for example between two jobs.
Deadlines
| Case | Deadline |
|---|---|
| Mandatory return for 2025, without a tax adviser | 31 July 2026 |
| Mandatory return for 2025, with a tax adviser or Lohnsteuerhilfeverein | later, until early 2027 |
| Voluntary return | up to four years back – for 2022 until 31 December 2026 |
If you are required to file and do so late, you risk a late-filing surcharge (Verspätungszuschlag). There is no surcharge for a voluntary return – but after four years any refund is lost.
Which costs you can deduct
Work-related costs are called Werbungskosten. The tax office automatically deducts the employee flat-rate allowance of €1,230 per year (Arbeitnehmer-Pauschbetrag). It pays to list costs if your actual expenses are higher.
Commuter allowance (Pendlerpauschale)
Since 2026: €0.38 per kilometre of the one-way distance, from the first kilometre, for every working day you travel to work – by car, bike, bus or on foot.
Example: 15 km one way × €0.38 × 220 working days = €1,254. That alone takes you above the flat-rate allowance.
Important: for stretches on which your employer transports you free of charge on the company bus, there is no allowance.
Other typical work-related costs
- Work equipment and work clothing: safety shoes, work gloves and typical work clothing you paid for yourself. Ordinary everyday clothes do not count.
- Bank account fees: the tax office usually accepts a flat €16 per year without proof.
- Moving costs: if you moved for work, including for your first job in Germany. Keep receipts for transport, travel and estate agents.
- Double household (doppelte Haushaltsführung): your centre of life and own household are back home, and you have accommodation at your place of work. Then rent for the accommodation at your workplace (in Germany up to €1,000 a month), one trip home per week and, in the first three months, meal allowances can count. The tax office checks the conditions carefully. Accommodation provided free of charge cannot be deducted.
- Training: for example a forklift licence you paid for yourself and that nobody reimbursed.
- Job application costs: travel to interviews, photos, postage.
Supporting relatives abroad
If you support relatives in need back home, you may, under certain conditions, claim these payments as extraordinary expenses (außergewöhnliche Belastung). Reduced maximum amounts apply for countries with lower price levels, and the tax office requires strict proof. Bank transfer receipts are far better than cash – more in Sending money home from Germany.
EU citizens with family abroad
- Spouse in another EU/EEA country: an EU citizen who is fully taxable in Germany can apply to be assessed jointly with their spouse (§ 1a EStG). This can be cheaper and, under certain conditions, allows tax class III. If the spouse lives outside the EU, for example in Moldova or Ukraine, this rule does not apply.
- No residence in Germany: if you work here but do not live here, you can apply under § 1 (3) EStG to be treated as fully taxable – provided almost all your income is taxed in Germany.
- Child benefit (Kindergeld) is not claimed through the tax return but from the Familienkasse – see Child benefit for EU citizens.
These cases are complex. Help from a Lohnsteuerhilfeverein or tax adviser is worth it here.
Documents you need
- Tax ID (Steuer-ID) – in the letter from the Federal Central Tax Office and on your payslip.
- Annual wage tax certificate (Lohnsteuerbescheinigung) – your employer sends the data to the tax office; you usually get a printout by the end of February.
- Certificates for wage replacement benefits (e.g. sick pay).
- Number of working days and distance to work.
- Receipts for work equipment, moving, training and accommodation at your workplace.
- IBAN for the refund.
Keep your payslips – how to read them is explained in Gross and net.
How to file
- ELSTER: the official, free online portal of the tax authorities. You register once; the activation code arrives by post. The interface is mostly in German, but much of your employer’s data can be imported automatically (Belegabruf).
- Tax apps and software: providers such as Taxfix, WISO or Wundertax guide you step by step, some also in other languages. They usually charge a fee or a share of the refund. Naming them is not a recommendation.
- Lohnsteuerhilfeverein: for employees, it prepares your return for an annual, income-based membership fee. Good if you want personal advice.
- Tax adviser (Steuerberater): useful for complex cases, but usually the most expensive option.
After you file, the tax office sends a tax assessment (Steuerbescheid). Check it: you can object (Einspruch) to mistakes within one month.
Checklist: tax return
- Have your tax ID and Lohnsteuerbescheinigung ready.
- Note working days, distance and how you got to work (company bus or on your own?).
- Collect receipts for work clothing, moving, courses and accommodation.
- Check whether filing is mandatory or voluntary – and which deadline applies.
- Choose how to file: ELSTER, app, Lohnsteuerhilfeverein or tax adviser.
- Enter your IBAN and check the assessment when it arrives.
- Don’t forget earlier years: up to four years back.
Work with us
We pay from €15.33 per hour gross, and as a forklift driver (m/f/d) from €16.08 per hour gross – with an employment contract, full social insurance and the payslips you need for your tax return. How much is left net is shown in Warehouse worker net salary. New to Germany? Our first steps checklist helps. Our recruiters speak German, English and Russian.
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