For employees and freelancers in Germany filing their first Steuererklärung and needing a plain-English walkthrough.
Your Steuererklärung (literally "tax declaration") is your annual German income tax return. You use it to declare all your income and deductible expenses to the Finanzamt (tax office) for the year. If you are an employee, your employer already withholds Lohnsteuer (wage tax) from each paycheck. The Steuererklärung simply reconciles what you should pay with what has been withheld, either leading to an extra payment or a refund (Erstattung). The system applies standard allowances (Pauschbeträge) for work costs and special expenses automatically. You do not have to attach receipts for these allowances, but you should keep them in case the Finanzamt asks.
All self-employed people (Freiberufler or Gewerbetreibende) must file a tax return. Employees only have to file if special rules apply (see below). Even if not required, many employees submit a voluntary return (Antragsveranlagung) because it often means getting money back. For instance, you can claim Werbungskosten (work-related costs like commute) or Sonderausgaben (deductible expenses like insurance and donations). The Finanzamt will apply flat-rate amounts for these expenses by default, which can boost your refund. Filing a Steuererklärung checks your tax situation and can recover overpaid tax, or ensure you pay any shortfall.
By law, you must file an income tax return in specific cases. If you earned more than 410 euros of income without wage-tax withholding (for example, rental income) or received more than 410 euros in untaxed replacement payments (such as unemployment or parental leave benefits), you are required to file. Also, if you and your spouse use the III/V tax-class combination, or IV with factor, or if one spouse files separately (Einzelveranlagung), both must file. Having multiple employers at once (with a second job taxed at class VI) also triggers a filing obligation. Retirees may need to file if their taxable income exceeds the allowance.
On the other hand, if you are only employed with one job and in a basic tax class, you are not automatically required to file. In that case, you have the option (Antragsveranlagung) to submit a voluntary return. Filing voluntarily can still be beneficial, for instance if your annual income varied or you have work or special expenses that exceed what was assumed by your payroll tax. Many employees find that the refund far exceeds any effort of filing.
Germany's official online tax portal is called ELSTER (Elektronische Steuererklärung). You use it to submit your Steuererklärung electronically. The ELSTER portal is free to use and secure. All tax declarations must be filed online. Follow these steps:
Paper tax forms are no longer used: the Finanzamt requires all Steuererklärungen to be filed electronically. If you prefer not to do it yourself, you have two main alternatives. First, you can hire a Steuerberater (tax advisor) or visit a Lohnsteuerhilfeverein (wage tax assistance association for employees). A Steuerberater will do the filing for you (for a fee, often a few hundred euros) and automatically gets the extended deadline in the following February. Second, you can use paid tax software or apps with step-by-step guidance. Some of these (for example Taxfix, WISO Steuer, and SteuerGo) operate partially in English and will submit to the Finanzamt on your behalf. Keep in mind that ELSTER itself is free and using it directly avoids extra costs.
If you go to a Steuerberater, you must provide all documents anyway. But the advisor will manage the details and may find deductions you missed. Without an advisor the 2025 return is due July 31, 2026. With a Steuerberater it can be filed by February 28, 2027. If you are an ordinary employee with a simple return, a paid app or filing yourself is usually enough.
Once you submit your Steuererklärung, the Finanzamt reviews it and issues a Steuerbescheid (tax assessment notice). This notice shows your final tax calculation. If you overpaid, the Bescheid will state an Erstattung (refund) and the money will be transferred to your German bank account. If you owe tax, it will show a Nachzahlung (payment due) and include instructions on how to pay. The Bescheid is usually sent by post or made available in ELSTER. If you filed late, it may also list a Verspätungszuschlag (late filing penalty).
Read the Steuerbescheid carefully. It lists your declared income, allowances, and tax results. If you disagree with any item, for example if you think a deduction was overlooked, you have one month from the notice date to file an Einspruch (objection) in writing. The notice itself gives instructions for how to do this. Keep the Bescheid and all your documents for at least a few years, as the Finanzamt may audit or ask questions later. Make sure your bank details are up to date to receive any refund. See our guide to banking in Germany for help opening and managing a German bank account.
Doing your first Steuererklärung can feel confusing because all the forms and letters are in German. Common mistakes include missing allowable expenses or misreading form fields. People often forget to fill in Anlage N for work expenses or skip deductibles like Sonderausgaben. Take your time to translate and double-check terms. If you ever need to write to the Finanzamt (for example, to ask for an extension or clarification), use a polite formal style. See our B1 Formal Writing Guide for tips on writing German letters and formal emails.
Save all relevant documents (salary slips, receipts) from the tax year as you go, because reconstructing them later is difficult. ELSTER can auto-fill a lot of information (salary, insurance, benefits) once you link your data. Do not ignore a notice from the Finanzamt. If they formally ask for a return, you must file or apply for an extension immediately. Missing the deadline without a good reason can lead to fines. Start early and use available resources if you feel uncertain.