Income tax refund in Germany (Steuerrückerstattung)
An income tax refund (Steuerrückerstattung) is a sum of money you receive back from the tax office (Finanzamt) if, over the course of the year, you have paid more income tax (Einkommensteuer) than you actually owe.
Income tax is deducted from your salary every month automatically via wage tax (Lohnsteuer). At the end of the year, when you file your annual tax return (Steuererklärung), your actual tax liability is recalculated and compared to the tax already paid.
If it turns out that you paid too much → you get the difference refunded.
Often you get money back because certain deductions were not automatically taken into account, such as:
Commuting costs to work (Pendlerpauschale)
Insurance contributions (health, pension, long-term care)
Donations (Spenden)
Costs for studies or vocational training
Special medical or therapeutic expenses
Childcare costs
An unfavourable tax class (e.g. Steuerklasse 5)
Periods of unemployment during the year (you paid tax for months in which you did not work)
Changes in your family or employment situation (marriage, divorce, birth of a child, relocation, etc.)
Ways to file:
Online via the ELSTER portal (elster.de)
Using tax software (e.g. WISO Steuer, Smartsteuer, etc.)
Through a tax adviser (Steuerberater)
Lohnsteuerbescheinigung (annual wage tax certificate from your employer)
Your bank details (IBAN)
Information on your income and deductible expenses
Insurance documents, job-related expenses, rental contracts, if applicable
Typically within:
6–12 weeks after submitting your tax return
(sometimes faster or slower depending on the federal state and the workload of the tax office)
On average in Germany:
Around 1,000 euros per year per employee
(according to figures from the Federal Ministry of Finance)
Until 31 July of the following year
(example: tax year 2024 → return due by 31 July 2025)
If you use a tax adviser: usually until the end of February of the year after that
(in this example: until February 2026)
| German term | English meaning |
|---|---|
| Steuerrückerstattung | Tax refund |
| Steuererklärung | Tax return |
| Lohnsteuerbescheinigung | Annual wage tax certificate |
| Finanzamt | Tax office |
| Werbungskosten | Deductible work-related expenses |
The editorial team has prepared this information carefully and based on several sources. However, errors or changes in the law cannot be completely ruled out. Therefore, this text is intended only as initial, non-binding guidance. For binding and personalised advice, please contact your local tax office or a qualified tax adviser.
