When are you required to file a tax return in Germany?

You must file an income tax return (Einkommensteuererklärung) if:

1. You have more than one source of income

For example:

• you have a salary job plus additional income from

  • renting out property,

  • self-employment / freelancing,

  • investments (interest, dividends),

• or you have two jobs at the same time (e.g. side job / Nebentätigkeit).

2. You received state income-replacement benefits (Lohnersatzleistungen) of more than €410 in one year

Examples of such benefits:

• Arbeitslosengeld (unemployment benefit)

• Elterngeld (parental allowance)

• Krankengeld (sickness benefit)

• Mutterschaftsgeld (maternity benefit)

• Kurzarbeitergeld (short-time work benefit)

These payments are tax-free, but they are subject to the Progressionsvorbehalt –
meaning they increase the tax rate applied to your other taxable income.

3. You have income from self-employment, rentals or investments

For example:

• rental income from a flat or shop,

• profit from shares, funds or interest above the tax-free allowance (Sparerpauschbetrag).

In such cases, filing a tax return is mandatory.

4. You and your spouse use an “unbalanced” tax class combination

For example:

• Tax class 3 + 5

In this case, married couples are obliged to file an income tax return,
so that the tax burden can be fairly adjusted between both partners.

5. The tax office (Finanzamt) has classified you as obliged to file

For example:

• due to previous corrections of your tax assessments,

• because the tax office has requested a review of your case,

• or because of previous types of income that require a return.

If this applies, you will usually receive a notice from the Finanzamt.

6. Your annual income exceeds the basic tax-free allowance

If your total income is above the basic tax allowance, you must file.

7. You have applied for a tax allowance (Freibetrag) in advance

For example:

• you requested a Steuerfreibetrag from the tax office
  so that less tax is deducted from your monthly salary.

In that case, you are obliged to file a tax return at year-end,
so the tax office can calculate your actual tax liability.

When is a tax return not compulsory?

You are usually not required to file if you:

• are an employee with only one source of income (one employer),

• have not applied for any Freibetrag,

• have not received any Lohnersatzleistungen,

• and your income does not exceed the annual basic tax-free allowance.

→ Then filing is voluntary (Freiwillige Veranlagung).

However, submitting a voluntary tax return often leads to a tax refund (Steuerrückzahlung).

Deadlines for filing

Useful terms

The editorial team of our website aims to provide accurate information based on thorough research and multiple sources. Nevertheless, errors may occur or some details may not be fully confirmed. Please treat the information in this article as an initial guide only and always contact the competent authorities or a qualified tax advisor for binding and up-to-date advice.