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Over 12 million people in Germany don't bother filing a tax return. Most of them are leaving money on the table. The average refund is €1,063 — and for expats who moved mid-year, it's usually higher. We've filed our own returns every year since landing in Germany, and the worst we ever got was €480 back. The best? Over €2,100 in the year we relocated.
Here's the thing that nobody at the Ausländerbehörde tells you: if you're a regular employee in tax class 1, you're probably not required to file. But you absolutely should. The tax system overwitholds from your paycheck, and the only way to get that money back is to file a Steuererklärung (tax return).
TL;DR: If you earned money in Germany in 2025, you should file a tax return in 2026. Average refund: €1,063. Takes about 20-30 minutes with Taxfix (English, €39.99 — only if you get a refund) or free via ELSTER (German only). Deadline: September 1, 2026 for mandatory filers. Voluntary filers have 4 years.
You can still file for 2022, 2023, and 2024 if you missed those years. Each year you didn't file is likely another €1,000+ sitting at the Finanzamt.
Do You Need to File?
Germany splits people into two groups: those who must file (Pflichtveranlagung) and those who can file voluntarily (Antragsveranlagung). Most single expats with one employer fall into the voluntary category — but you'd be foolish not to file.
- You had income from multiple employers in the same year
- You earned freelance or self-employment income (even side income)
- You received government benefits: Kurzarbeitergeld, Elterngeld, Arbeitslosengeld, Krankengeld
- You and your spouse use tax class combination 3/5
- You had rental income from property
- You received a letter from the Finanzamt asking you to file
- You had capital gains above the €1,000 Sparerpauschbetrag and tax wasn't withheld
You should voluntarily file if: you're a regular employee in tax class 1, 2, or 4 with one employer. The tax withheld from your paycheck each month is calculated as if you'll earn that exact amount for 12 full months. If you had any deductions (commute, home office, moving) or didn't work the full year, you've been overtaxed. Filing gets that money back.
What You Can Deduct
This is where expats leave the most money behind. Germany's deduction system is generous if you know what counts. Every euro you deduct reduces your taxable income, which reduces your tax bill.
Werbungskosten (work-related expenses)
Everyone gets a flat €1,230 deduction automatically — the Arbeitnehmer-Pauschbetrag. You don't need receipts for this. But if your actual expenses exceed €1,230, you should itemize. Here's what counts:
| Deduction | Amount | Notes |
|---|---|---|
| Commute (Pendlerpauschale) | €0.30/km (first 20 km), €0.38/km (beyond) | One-way distance × 230 working days. Counts even if you bike or walk. |
| Home office (Homeoffice-Pauschale) | €6/day, max 210 days | €1,260/year max. Can't claim both home office and commute for the same day. |
| Work equipment | Actual cost | Laptop, monitor, desk, chair, phone. Items under €800 net deducted immediately. Above that: depreciated over useful life. |
| Professional development | Actual cost | Courses, conferences, certifications, books, professional subscriptions. |
| German language courses | Actual cost | If your job requires German or if you're taking integration courses. Keep receipts. |
| Moving costs (Umzugskostenpauschale) | €886 flat + actual costs | Only for work-related moves. Includes first move to Germany for a job. |
| Double household (doppelte Haushaltsführung) | Up to €1,000/month rent | If you keep a home in your origin country and rent in Germany for work. |
| Work clothing | Actual cost | Only clothes you can't wear outside work (uniforms, safety gear). Regular suits don't count. |
| Union dues / professional memberships | Actual cost | Gewerkschaft, professional associations, bar membership, etc. |
| Job application costs | Actual cost | Application photos, printing, postage, travel to interviews. |
Sonderausgaben (special expenses)
These include church tax paid (Kirchensteuer), private health insurance premiums beyond the basic coverage, donations to German-registered charities (get a Spendenbescheinigung), and alimony payments. Most of these are already reported by your employer or insurance, but double-check.
Tax Refund Estimator
Plug in your numbers and see what you'd get back. Adjust the sliders — even small deductions like a 15 km commute make a noticeable difference.
Tax Refund Estimator
Estimate your German tax refund based on your deductions
Answer simple questions in English. Taxfix fills in the forms and submits to ELSTER for you. Pay only if you get a refund.
Start My Tax Return → €39.99 · English interface · Only pay if you get money back · ~20 minTaxfix vs ELSTER vs Steuerberater
Three options. Each has a clear use case.
| Feature | Taxfix | ELSTER | Steuerberater |
|---|---|---|---|
| Cost | €39.99 | Free | €200–800+ |
| Language | English + German | German only | Depends on advisor |
| Time | ~20 minutes | 2–4 hours first time | 1 meeting + waiting |
| Payment model | Only if you get a refund | Free always | Charged regardless |
| Complexity handled | Employees, simple freelancers | Everything (if you know the forms) | Everything |
| Extended deadline | No | No | Yes — until May 2027 for 2025 returns |
| Best for | Expats, employees, first-timers | German speakers, straightforward cases | Complex cases, freelancers, high income |
Step-by-Step Filing
Whether you use Taxfix or ELSTER, the process follows the same structure. Here's what to prepare and what to expect.
Deadlines and Penalties
Miss the mandatory deadline? The Finanzamt charges a late filing penalty: 0.25% of your tax bill per month, minimum €25/month. After 14 months, they get really unfriendly. Voluntary filers have no penalty risk — you either file within 4 years or you forfeit the refund.
Pro tip for expats: If you've been in Germany for 2-3 years and never filed, do all previous years at once. Three years of unfiled returns could mean €3,000+ in refunds sitting at the Finanzamt with your name on them.
Tax Classes Explained
Your Steuerklasse (tax class) determines how much tax is withheld from each paycheck. It doesn't change your total annual tax — only the monthly withholding. The final tax bill is calculated when you file your return.
| Class | Who gets it | Monthly withholding | Notes |
|---|---|---|---|
| 1 | Single, divorced, or widowed | Standard | Most expats start here. Default for everyone who isn't married. |
| 2 | Single parents | Lower than class 1 | Extra allowance for single parents (Entlastungsbetrag). Must apply for it. |
| 3 | Married, higher earner | Much lower | Partner must take class 5. Good if one spouse earns significantly more. |
| 4 | Married, similar income | Standard | Both spouses get class 4. Fair split when incomes are close. |
| 5 | Married, lower earner | Higher than class 1 | The sacrifice class — you get taxed more so your class-3 spouse gets taxed less. |
| 6 | Second job | Highest | No allowances. Brutal withholding. Filing a return often gets money back. |
Married expats: The 3/5 combination maximizes your monthly take-home pay if one spouse earns more. But you're then required to file a tax return. If both spouses earn similar amounts, 4/4 is simpler and doesn't require mandatory filing.
Expat-Specific Situations
Arrived mid-year
This is the biggest refund opportunity for expats. If you arrived in Germany in July and started working, your employer withholds tax as if you'll earn that salary for 12 months. But you only earned for 6 months. Your actual annual income is half of what the withholding assumes — meaning you were massively overtaxed. We've seen refunds of €2,000+ for mid-year arrivals. File your return.
Income from your home country
Germany taxes worldwide income for residents. If you earned money abroad before moving, you may need to declare it. However, most double taxation agreements (Doppelbesteuerungsabkommen or DBA) mean you won't be taxed twice. The foreign income might just push your German income into a higher bracket (Progressionsvorbehalt). Taxfix handles this for EU income. For complex international situations, consider a Steuerberater.
Double household (doppelte Haushaltsführung)
If you maintain a home in your origin country and rent in Germany for work, you can deduct up to €1,000/month in German rent, plus one trip home per week (distance × €0.30/km). This is a massive deduction that many expats don't know about. You need to prove your "center of life" (Lebensmittelpunkt) is still abroad — things like paying rent or mortgage there, family ties, regular visits.
Common Mistakes
Takes 20 minutes. English interface. You only pay €39.99 if you get a refund. Average refund: €1,063.
Start My Tax Return → Works for all tax years from 2022 onwards · Pay only if you get money backFrequently Asked Questions
Do I have to file a tax return in Germany as an expat?
Q: What is the deadline for filing a German tax return in 2026? For the 2025 tax year filed in 2026: the deadline is September 1, 2026 if you file yourself. If you use a tax advisor (Steuerberater) or a Lohnsteuerhilfeverein, the deadline extends to May 31, 2027. For voluntary returns, you have 4 years — so you can still file for 2022, 2023, 2024, and 2025.
What can expats deduct on their German tax return?
Q: How much is the average tax refund in Germany? The average German tax refund is €1,063 according to the Federal Statistical Office (Statistisches Bundesamt). For expats who moved to Germany during the tax year, refunds are often higher because the tax withheld from your salary assumes you earned that rate for the full year.
Can I file my German tax return in English?
Q: Can I file tax returns for previous years? Yes. For voluntary filers, you can go back 4 years. In 2026, you can file for 2022, 2023, 2024, and 2025. Each year is a separate return. Many expats claim thousands by filing for all previous years at once.
What are the German tax classes?
Q: What documents do I need for my tax return? Essential: Lohnsteuerbescheinigung (annual tax certificate from employer — arrives by February). Helpful: receipts for deductible expenses (commute pass, work equipment, language courses, moving costs). You don't submit receipts with the return but keep them for 10 years.
Bottom Line
Filing a German tax return is the single highest-ROI thing you can do as an expat. Twenty minutes of your time for €1,063 back (on average) is a no-brainer. If you've been here multiple years without filing, go back and claim all of them — you're sitting on thousands of euros. Use Taxfix if you want the English, guided experience. Use ELSTER if you're comfortable in German and want to save €39.99. And seriously — don't forget your commute deduction.
Transparency note: ExpatNav may earn a commission if you file through our Taxfix link. This doesn't affect our recommendations — we compare all options honestly, including the free ones.
Last updated and verified: May 2026. Tax rules may change. Confirm current rates on the official BMF website.
Sources: §32a EStG (tax brackets) · Statistisches Bundesamt · ELSTER · Taxfix · BMF