Income taxes

If you stay in Germany for a longer period of time, you must pay taxes on your income. Here you can find information about your rights and obligations regarding the payment of income taxes.

Income tax in Germany

What income is subject to tax in Germany?

• Do you live in Germany for more than 6 months? A continuous stay of more than 6 months establishes habitual residence in Germany. Habitual residence or a domicile in Germany results in you being subject to unlimited tax liability in Germany are and must tax your worldwide income there.
• Have you lived in Germany for a maximum of 6 months? If you have neither a residence nor your habitual abode in Germany, you only pay taxes in Germany on the income generated there. In this case, you are subject to limited tax liability.
• Do you receive income from other countries of the European Union (EU)? Make sure you do not pay taxes on the same income twice.

How much do you have to pay?

What remains of your gross income in Germany left over after tax deduction?

The taxable income is calculated from the sum of income from the various types of income, taking into account various allowances and deductions. The standard income tax payable thereon is determined based on the following key parameters:

• taxable income up to EUR 10,347, marginal tax rate in 2022 of 0 percent (2023: up to EUR 10,908
• from EUR 10,348 to EUR 14,926 taxable income, marginal tax rate in 2022 of 14 percent rising to 24 percent (2023: EUR 10,909 to EUR 15,999)
• from 14,927 EUR to 58,596 EUR taxable income, marginal tax rate in 2022 of 24 percent rising to 42 percent (2023: 16,000 EUR to 62,809 EUR)
• 58,597 EUR to 277,825 EUR taxable income, with a marginal tax rate in 2022 of 42 percent (2023: 62,810 EUR to 277,825 EUR)
• from 277,826 EUR taxable income, marginal tax rate in 2022 of 45 percent

In addition, above an exemption limit of EUR 16,956 (2022) or EUR 17,543 (2023) a solidarity surcharge in the amount of 5.5 percent Levied on your income tax.

If you are also a member of a church tax are a member of a religious community that collects taxes, you pay church tax. The church tax is also calculated on the basis of income tax and amounts to 8 percent in Bavaria and Baden-Württemberg respectively 9 percent in other federal states.

Certain deduction amounts are taken into account when calculating wage tax.

When and how do you pay as an employee?

Your Employer withholds the income tax to be paid on your wages one and pays this over to the tax office. With the Interactive wage and income tax calculator of the Federal Ministry of Finance, you can determine your estimated income tax liability.

In addition to the taxes due, the employee contributions due for statutory social security are also withheld directly from the wage by the employer. These include contributions for pension, nursing care, unemployment, and health insurance.

Is your salary your only source of income? In this case, you generally do not need to file a tax return. However, there are exceptions, for example, if you have received wages from multiple employers concurrently.

Do you want to file a tax return in order to take advantage of certain tax exemptions? Then send these to your responsible tax office before the deadline in the following year:

• Tax return 2023: until August 30, 2024
• Tax return 2024: until July 31, 2025
• Tax returns from 2025: by the end of July of the following year

Your tax office will inform you about your rights and obligations. Comprehensive advice can be obtained from tax advisors as well as lawyers, who can also legally assist you before authorities and courts.

Objections or lawsuits

You can appeal against your tax assessment within a month file an appeal with the tax office within notification. Against the decision on the appeal, you can bring an action before the fiscal court.

When and how do you pay as a self-employed person?

You may need to tax prepayments pay based on your previous year's income to balance your expected final tax liability once it has been assessed by the tax office.

You have a new company founded?

If you open an agricultural, forestry, or commercial business or a permanent establishment, you must register this with the Show municipality, in which the business or permanent establishment is opened. The municipality forwards the information to the competent tax office. If you start a freelance activity, you must do so immediately to the competent Notify the tax office.

In addition to the aforementioned notifications regarding the commencement of the activity, the tax office requires further information on the legal and factual circumstances relevant to taxation. This information is provided in the Questionnaire for tax registration requested, which you must submit to your tax office unsolicited within one month of commencing the activity.

Based on your information in the questionnaire, the tax office determines the Amount of advance payments determined regarding the taxes to be paid.

As long as your company exists, you must Your tax returns submit to the tax office responsible for you before the expiration of the respective applicable deadline:

• Tax return 2023: until August 30, 2024
• Tax return 2024: until July 31, 2025
• Tax returns from 2025: by the end of July of the following year

Your tax office will inform you of your rights and obligations. Comprehensive advice can be obtained from tax advisors or lawyers, who can also legally assist you before authorities and courts.

Objections and lawsuits

You can appeal against your tax assessment within a month file an appeal with the tax office upon notification and bring an action before the finance court against the decision on the appeal.

• Federal Ministry of Finance (BMF)

This support service assists you in exercising your rights and fulfilling your obligations within the European Single Market.

• Equal Treatment Office for EU Workers