German income tax is not THE topic that will spark excitement in your life in this country. Look elsewhere for that. However, understanding the difference between this system and the one you know at home is a necessary step.
At the end of this guide, you will be able to understand the basic factors impacting income tax in Germany, how to lower your taxable income & what it means for you as a foreigner.
Who is liable for German income tax
German income tax is known as “Einkommensteuer“. Anybody living in Germany has to pay income tax here. German residents have to declare their income, regardless of its geographical origin. It doesn’t matter if you are a German national or a foreigner. Whether you are an employee or self-employed also doesn’t play a role.
As a reminder, you are considered a German resident if you spend more than 183 days in the country during any given year. If you aren’t a German resident, you can still be liable for German income tax in some cases. Refer to this section for more details.
Income tax is levied thanks to your German tax ID, which is a unique identifier used by the local tax office (Finanzamt) & your employer.
Which types of income are taxed
The following types of income are liable:
- Income related to self-employment – (Private Einkommensteuer)
- Income related to employment – (Lohnsteuer)
- Income related to pension – (Private Einkommensteuer)
- Income related to businesses – (Gewerbesteuer)
- Income related to agriculture & forestry – (Gewerbesteuer)
- Income related to capital – (Kapitalertragsteuer)
- Income related to property – (Grundsteuer)
- Other types such as leasing, renting, inheritance or alimony.
The following types of income are not liable, but they may be used to determine your total taxable income:
- Unemployment benefits – (ALG 1)
- Social benefits – (ALG 2)
- Parental benefits – (Elterngeld)
- Child benefits – (Kindergeld)
- Lottery winnings
Income tax rates in Germany
German income tax follows a progressive system. This means that each “slice” of your income is taxed a different rate. Your tax burden increase with each bracket you reach, with each bracket applying a different rate. This is what it looks like if you are single:
| Income tax bracket – € (2023 – single person) | Tax rate |
|---|---|
| Up to 10 908 € | 0% |
| 10 909 – 62 809 € | 14 to 42% |
| 62 810 – 277 825 € | 42% |
| 277 826 & above | 45% |
This is how married couples & registered partners are taxed in Germany, if they do a joint tax declaration.
| Income tax bracket – € (2023 – married couple) | Tax rate |
| Up to 21 816 € | 0% |
| 21 817€ – 123 944 € | 14 – 42% |
| 123 945 – 555 650 € | 42% |
| Ab 555 650 € | 45% |
Please note: those tables are a simplification because there are many sub-brackets. Full table available here.
Employees can calculate their net versus gross salary thanks to this net salary calculator for Germany.
Solidarity & church tax surcharges
To paint a more complete picture, it’s important to look a 2 other factors that can impact your tax burden:
- Solidarity tax (Solidaritätzuschlag): this surcharge was initially applicable to all tax payers as way to finance former East Germany after reunification. Since 2021 however, only tax payers with income higher than 96 409€ (single person) are subject to it. Account for an additional 5.5% of your income tax.
- Church tax (Kirchensteuer): Germany is financing several mainstream churches directly through this surcharge. This is applied to the tax payer if they are part of one of them. Account for an additional 8-9% of your income tax. You can find a guide on how to stop paying Church tax here.
Please note that those surcharges are not calculated off of your total taxable income, but only off of your taxes to be paid.
When is German income tax due
As a private person, income tax in Germany is levied at different times:
- For employees: Wage tax (as well as solidarity & church tax) is levied directly by your employer on your paycheck at the source. Factors impacting that taxation are factored in: family status & tax classes for example. This means that your net salary is also your net income after taxes. All taxes on other income sources you might also have (rental income, capital gains, etc) are to be declared in your yearly tax return. They are then due on the year following by July, 31st. (eg: tax on income from 2022, to be paid in 2023), or later with a tax consultant.
- For self-employed: if you are a newly established freelancer in Germany, income tax is usually due the year after your first year of activity, based on tax assessment for that year. In the years after that, the Finanzamt will use that data to set quarterly prepayments. This is adjusted every year based on your financial results. As for employees: any tax due on other income sources are to be declared in yearly. They are then due on the year following by July, 31st (eg: tax on income from 2022, to be paid in 2023), or later with a tax consultant.
Taxation for foreigners
German income tax for non-residents
There are cases in which non-residents also need to pay income tax in Germany, albeit in a limited capacity on this particular type of income:
- Non-residents owning real estate in Germany: they have to pay property tax (Grundsteuer) on the rental income they get from their local investments. There is an obligation to submit a tax return every year. The local tax authorities (Finanzamt) might decide on prepayments throughout the year in form of quarterly installments.
- Public servants sent abroad: if you are on the payroll of a public entity while working abroad, your income is to be taxed in Germany.
- Non-resident employees of a German company: they have to pay tax on so called extraordinary income (außerordentliche Einkünfte as defined by § 2 Paragraph 1 of EStG). This is things like stock-options, severance packages, capital gains & bonuses. There is an obligation to submit a tax return too.
Avoiding double taxation
Numerous bilateral treaties exist between Germany and countries around the globe to ensure a fair taxation for citizens working across borders. Those treaties plan for relief mechanisms to avoid both countries apply income tax twice.
You can read how to use double-taxation avoidance agreements in this post.
How to lower your taxable income
There are few things you can do to pay less taxes:
- Get married: The German tax code is generous with families. It plans a tax relief system that’s particularly interesting if either one of you earns more than the other. This is controlled by your tax classes (Steuerklasse). How to make use of tax classes is explained here. You can potentially save thousands of euros that way.
- Have kids: Parents can benefits from tax relief when they have children. This is called a child allowance (Kinderfreibetrag), which is connected with child benefits (Kindergeld) in the overall calculation. In 2023, that amounts to 3012€ per parent, as defined by Einkommensteuergesetz (EStG) § 32. A lot of expenses related to your kids can be put off in taxes too (such as expenses for school or day care).
- Make use of tax-deductible expenses: there are plenty of expenses that can be put off in taxes. You can find a list of deductibles for Germany this way.
- Do a tax return every year: even if it’s not compulsory to make a tax declaration (Steuererklärung) every year for a lot of people, it’s often well worth because of how much taxes you can get back. Here is a guide on how to do a tax return in Germany.
German income tax – FAQ
Germany’s tax burden is one of the highest in the world which has led to a strong welfare system and a large budge surplus. This is surely motivated by the golden rule of politics in Germany: no policy should be left financed.
Total income tax is calculated based on your income as an employee or as a self-employed, with factors related to your marital status & your parental situation if applicable. On top of that, a supplementary church tax and solidarity tax may be applied. Finally, other types of income church as capital gains, rental income & more are taken into account as well.
In some cases yes. Typically, non-residents who own real estate in Germany must pay local property tax by submitting a compulsory tax return. If a non-resident is employed by a German company, extraordinary income such as bonuses or severance packages may be taxed in Germany too.
I hope this overview was a helpful introduction on the topic. Feel to ask questions in the comments.
Bastien
Hello, If a person is renting a flat in Germany together with someone and both are on the contract – but one have moved away from Germany many years ago but forgot to report that they are not working (having any income in Germany) or living any longer in Germany, how is it with tax, do they need to tax anything still?
Hey J. I don’t really understand the question. Why would a flatmate moving out would impact your own tax situation?
Hi Bastien!
Thank you so much for all the info, super useful!
A question related to self-employment registration and taxes: Do I have to register as a freelancer while I am making less than the stated 10 908 €/year minimum threshold? Or how does this work?
Hey Madara. Glad to read it was helpful. Yes you need to register that, regardless of the amount of money you make. You can read a full guide on how to do that here.
Hi, A question regarding claiming work from home space as a home office. We have a very large open space that has distinct ‘nooks’ that have three walls but open in to larger living area. one is a dining room, and the other we are using as an office. Can this nook be declared as a home office even though it does not have a physical wall or door? The space is soley used as an office with a desk and table. We could consider putting a curtain or movable room dividers between if that would help.
Thank you!
Hello again. It’s a tricky question because all documentation do talk about the physical space being separated from the rest of your private home by a door. Like here for example. Curtain is definitely a no-go. I don’t have a definitive answer. Hard to tell without the space too.
Hi, thank you for the information! Can you tell me how it might work if my spouse is an employee and I am self employed relative to how the total taxes for the family are calculated and the deductions we can take?
Hey Ginny. I cannot tell you a number. There are several parameters involved. That would be the job of a professional. Your spouse will pay wage tax directly off his/her payslip. As a freelancer, you will pay your income tax in installments throughout the year, based on the income you had last year (or forecasted, if it’s the first year). At the end of the year, you can do a joint tax declaration to deduct even more expenses related to your household, as well as declaring potential other income sources. Here is a list of what you can deduct in Germany.
Hi, Bastien,
First of all, that is one great article and very useful filled with other linked articles about living in Berlin. Now towards the main point, I’m currently doing a Bachelors in Physics from University of Leipzig however these days I am thinking of changing my program to business studies. I will be applying to a couple of programmes for summer 2021 in Berlin, any suggestions?? Plus what salary should I be earning after my studies if I want to have a good lifestyle (not extravagance) while living in Berlin??
Thanks!!
Hey Saif. Here is a post about salary in Berlin, it’s a good starting point, even though the figures are a bit older now.
Hi Bastien, thanks for sharing!
I have just got asked to pay 2k to the tax office. But my gross income is 10K less than what they calculate. In my form is correct but not in the letter they have sent back asking me to pay. Who’s mistake is that? One of my previous employers? Someone else using the tax number?
Thanks a lot for your advice
Best, Rita
Hey Rita. You can simply call for the Finanzamt for more explanation. You also have a right to protest this and prove that you are right.
Hello Bastien!
Thank you so much for all this information. I am about to move to Berlin as a British citizen. I will be working for a company in China so will not receive income from Germany. I will not be registered in Berlin for my first two months there while working. Does one need a freelance visa in such a circumstance? How quickly should I get this in process to be able to work legally in Berlin and prepare to pay tax?
Hey S. It’s a tricky one. You could theoretically still earn that income while being a british tourist in Germany, first registering when you can be officially employed by this Chinese company in Germany. Or am i confused here?
Hey Bastien, Thanks for sharing! I recently started a job in Berlin and I’m married my husband (we are both non German and non EU residents) is registered in Heilbronn. Are we allowed to have the couple tax? I’m worried because we are not registered in the same city. In this case which tax categorie I would have?
Hey Mira. As long as you are both German residents and both taxable here, it should not be a problem to be in 3/5 tax class setup.
Hi Bastien,
I am planning on working remotely from our company’s Frankfurt office for 3 months. Will I be subject to German income taxes? Based on my (at this point) very limited research, it sounds like I would need to be a resident for 6+ months in order to become subject to German income taxes, but if you could let me know your thoughts, I would greatly appreciate it.
Many thanks in advance,
SMF
Hey SMF, yes, in my opinion you are also right. You would not be considered a German resident. You’d pay your taxes like you would normally, unless there is some other agreement between your home country and Germany. Ask your HR department, in doubt.
Hey Bastian and thank you for all of the info 🙂
In 2019 I opened my freelancer account and I was working as an employee (12 payslips).
For example, I earned:
As a freelancer (Gross yearly): 3500
As an employee (Gross yearly): 17700
Any tip of how can I calculate my taxes?/Where should I apply to? Who can answer my questions?
By the way, I am married but didn’t update the tax and my husband’s gross salary is less than mine, but if I understand correctly I can not change my tax class for 2019 in retrospective)
Thanks 🙂
Hey. You can use the simulator i linked to in the article for an estimate.
Hello Bastien, I moved to Germany about a year ago as a Freelance IT professional. I have rental income in my home country (which goes into the local bank accounts) as well as rental income Germany. I have no professional income in Germany yet. Is the rental income in my home country (India) of consequence when calculating income here? Thanks in advance.
Hey Al Prab. Any and all income, regardless of its origin, should be declared in Germany if you are resident here. You might want to check if there are tax treaties to avoid double taxation though.
Hi I have a Question about GERMAN INCOME TAX.
I got employed in october 2019 on a rate 50,000. € until December 2019.
From January 2020 I will earn 60,000€
So in 2019 I earn for October, November and December 12,500 € GROSS
QUESTION: does this mean that for the 3 months I will only be taxed on the amount above the TAX- free allowance of circa 9,000 € ?
Thank yoou for advice!!
Hey Peter. The Finanzamt will look at your income for the whole year. So if that’s your total income of the year is that much, then that’s right.
That is interesting I have the same question ! But the taxes for the 3 months are paid as if you had made 50000 a year. So where is the money from overpaying the taxes collected ?
Hey Lukas. I’m not sure i get the question here…
Hi, Bastien
I am currently pursuing my masters at Otto Von Guericke Universität Magdeburg, so it goes without saying that I am registered at Finanzamt Sachsen Anhalt in Magdeburg. I would be moving to Berlin starting from September for 8 months since I have been offered an Internship in Berlin. The pay would be 700 € Gross. Now my question is, will I be taxed? If I will be, then how much would be my Net Income? I am wondering since it is just for 8 months, it definitely won’t be more than 8000€ per year.
Hey Rahul. You can use the calculator linked in the post to see how much you net income will be,
Hi Bastian,
Thanks for your post, I have worked in 2018 only for 3 months, is it okej to not declare taxes for that year
hey peter. yes.
Hi Bastein,
I have a question regarding the Fundraisers. I have started a campaign for one of my cousin living In India suffering from Chronic Kidney DIsease. Because the online fundraiser is not working for the Asian countries, I have to ask for the donation in my account here in Germany. My question is if this donation what I will receive in my account is tax-free or am I liable on it?? It should be somewhere around 7k to 8k EUR.
Hey there. That would require the opinion of a professional but donation falls under the normal income tax rate. It would be tax free if you were to donate that money to a charity, which could produce a receipt to let you put it off in taxes. (You earn the money by gathering it but give it to the charity right away)This source tells me that you can put donations off up to 20% of your yearly income.
Hi Bastien, thank you for your help. I am in a situation where I have been working full time for the whole year so far i.e. Jan-August (and the two years before that) but from end of August my contract ends. Then I have a type of scholarship from a university but unfortunately it appear that it is actually Honorarvertrag. It is only for two months and the total is 5000 euros which is obviously less than 8000 per year. But my question is: is the 8000 threshold you mentioned valid in my case? Or is it not because I was already receiving income/paying taxes from Jan-August? Thanks in advance for your help!
Hi Bastien,
Thanks for your website and for sharing this info. There is something i am not clear about: the first 8,004 € are not supposed to taxed. How does it work when being taxed at the source ? Do we receive your salary without paying taxes for the first 8,004 € OR is this exclusion not taken into account when the tax rate is applied (and I therefore will need to file a tax declaration to get some money back )?
Similarly for the tax church, I am not religious and therefore do not want to pay it. Will it be automatically withdrawn from my salary and I will have to claim it back in the tax declaration OR can it be taken into account by the tax authority when applying the tax rate at the source ?
And finally for the child allowances : are they paid directly by the employer and subject to income taxes OR are they separately received by the employees ?
I am also looking for a list of deductions (like educational cost, transport cost), with the maximum that may be deducted.. If you know where i could find this, that would be super helpful..
Thanks a lot for this additional info !
Hey Manou. No need to file a tax declaration, it will already be the right amount on the payslip. Tax Church: Take a look at this post on the topic. Child allowances: It doesnt go through your employer.
hi,
i had a job offer of which they will pay me 2000 before any deduction. is this fair? how much should I negotiate it for? I am an architect with 3 years experience.
Hey Malak. Maybe this post here would help?
Hi,
My salary includes a fixed and a variable component. I belong to tax slab 1. Will the same percentage of deductions apply even to the commission component? It’s sporadic and is contingent on how much sales I register in a month.
Hey Chandan. That’s an excellent question. From my quick research, it seems that the answer would be yes, as the contract defines the result of both components as the salary. Source.
Hi Bastien,
Thank you for your post.
We just moved to Germany and my fiance started working as a doctor. She received her first payslip and we assumed that first 9000eur will be a tax-free allowance. However, she got taxed (lfd.lohnsteuer) around 20% in her first month. I assume you can get the refund at the end of the year when you file the tax return. But is it possible to do some changes now and receive the next salary untaxed until you reached the 9000 eur threshold?
Thank you in advance for your answer.
Hey Arnold. Is the difference simply not the gross salary after income tax and obligatory health insurance contributions? I don’t really understand the question here.
Hello. I work as a Tragwerkspläner ful time in Frankfurt. My monthly gross salary is 3500 Euros and my net salary is 2200 Euros . I am planning to make some extra cash and thinking of working a Mini job. I want to know if this is allowed ? And will I come under Tax class 6 ?
Hey Sathya, yes you are allowed to take on a mini-job aside from your main job. Tax class 6 yes. More info here.
Hi I worked in Germany 3 months ,from March -1-2018 to may_26_2018.
And my monthly salary is 6000EUR
But my take home salary is 3900EUR, after deducting Tax around 1400Eur per month and 900 EUR for my accommodation etc .
My question is how much should I get tax refund ?
Hey Bheema. That’s not possible for me to say as there are many parameters involved. It’s probably worth it to apply for one though. See this post for more info.
Hi Bastien. Thanks a lot for sharing your knowledge! I’ve recently moved to Berlin and am wondering how the tax free allowance works in practise when working as an employee. Checking my payslip for my first two salaries I appear to have been taxed at the normal rate without a tax free allowance. Will this over-payment be reimbursed to me at the end of the tax year? Or will I need to discuss this with my employer to adjust this? In addition to this, is the Steuererklärung something I will just receive or do I need to file this myself?
Hey Nick. As an employee, it’s not an obligation to file a tax declaration. If you want to do it, more info on how to this way. As for the rest, it’s not really possible to say based on this brief description. Getting in touch with your HR department is a good idea here.
Hello,
Thank you for sharing the tax knowledge.
My husband and I are both British, and we live in London at the moment. I recently received a job offer from a Berlin- based company and I am really keen to take the job.
I did some reasches and found that we have to live together for me to pay the reduced tax rate in Germany. My husband is unlikely to relocate with me to Berlin as he is on full-time employment in England, and my future employer doesn’t mind me only coming to Berlin occasionally. My new pay package will be about 60% more than his.
I’m wondering if registering our resident address in the UK will help with the tax rate? Or registering both of our resided in Germany will be better ( but he’ll still be on an English payroll)
Thank you in advance.
Hey Yuko. If i understand things well, it doesn’t look like you are going to a German resident so it’s probably going to be the british system applying here.
Hey, I am a German PHD resident in Australia (possibly forever if things go to plan). I receive a small scholarship from an Australian University. This amount is below the amount you need to pay on tax on in Australia. I filled in my German Tax return recently as I thought I needed to complete it and they now want to tax me on the amount of money I am earning in Australia. Even though this amount is very low due to a high cost of living in Australia. Is this right? There is a Double tax agreement between Australia and Germany but can this amount slip through because it is so low it is not taxed in Australia (but is more than 9000 euros).
Have I done something wrong, is there some kind of non resident declaration I need to do so I don’t pay tax on this money in Germany. I don’t live there anymore. I may never live in Germany again if I am able to find work after my study.
Hello. I have written a whole post about how to avoid double taxation here. Basically, it all boils down to your residency for that year. where have you spent more than 180 days?
Hi! I’m sorry to bother but I’ve been looking like crazy and I haven’t find and answer yet so I thought I might just ask here. I have a work permit that’s connected to the company I’m working for and on it it says I can also do freelance work (as long as this doesn’t become my main income).
I’m not sure how to sign up as a web designer (or maybe just designer?) freelance. I know there’s a form that I can fill online, but do you happen to know where I can find the exact category I should apply for?
Also, if I’m working full time and sign up as a freelancer, would I be paying more taxes? Will this “second job” as a freelancer be under the Category 6 of taxes?
Thanks, your blog is awesome ♥
Hey Natacha. You can find a detailed guide on how to become a freelancer in Germany on this page. You will be paying more taxes yes, since you make more money.
Taxation is THEFT. Simple.
Hi
I would like to ask some question about my german husband who is working as a seaman in a cyprus registered vessel. Should he still need to pay tax here in hamburg even he is not employed directly here in germany.
Hey Gracy. If he is GErman resident, he needs to declare and pay his taxes in Germany.
I am in the process of negotiating salary for a company in Hamburg. I used the tax calculator and 47000 has higher net pay than 48000. I am more concerned of the net pay than the gross. Is there like an added advantage for having a higher tax rate? What I mean is I am trying to get advice if I should ask for 47k salary or 48k salary
Hey Gen. Your logic holds. I don’t see anything else that would speak against it. Those salary levels are in between 2 tax brackets so that’s definitely a clever thought.
Hi, I just started to receive my German pension in May of this year, it is the only income I have in Germany and it is a small amount between
350-400 dollars
Do I have to fill out a tax-return?
Hey Jurgen. Can’t possibly say with so little details.
Hi!
I am an american citizen and come to germany for months at a time but less than 6 months. While here I do some freelance teaching. I’m trying to figure out the 19% Mwst (Brutto) that studios take out automatically would apply to me being a non-taxable individual. There isn’t much clear info on that and it would seem then I’m paying taxes here in Germany and then again back in the U.S. at full rates which doesn’t seem right from what I’ve been reading.
Clarifying it be very helpful and appreciated. I earn FAR below the $100,000 that becomes taxable as well for additional info.
Thank you!
Hey Jung. I am no expert but logic would tend to tell me this: you are not a German resident. Therefore your income is not taxed in Germany, only in the US. Concerning how you hand VAT, i guess the US system/rules apply; definitely no expert there. 🙂
Hi buddies,
I’ve a few questions about tax refund, I hope you can help me 🙂
– I’m EU citizen, and my wife as well. We are currently living in Finland and I’m moving there in less than one month to start a new job, but my wife will remain in Finland (at least for the first 6 months or year). So what’s my situation with the tax office? Is it possible for me to decrease the taxes?
– Any experience about the compensation for the commuting?
Hey Ivan. Your wife also has to be a German resident as well for you to be able to use the tax class system to your advantage. See here for more info. You can put commuting costs off in taxes.
Hello everyone,
I just wanted to ask something regarding my situation. I am working in Germany (Blue Card) since Jan 2018 but my wife still hasn’t received the reunification visa approval – should come in the next 2 weeks finally (since she was waiting for 8 months for the appointment in the Embassy). I forgot to mention that we come from Serbia (non-EU country).
I am in the class category I still since she is not registered in Germany
So this is the question: if she moves in in 2019 is it possible to claim retroactively my tax return also for the 2018 as well (class to be changed from I to III) since we are married for the last 4 years.
Thank you all in advance.
Best regards!
Hey Marko. In my opinion, i don’t think it will be the case since your wife probably needs to be a German resident first.
Hi Marko,
Yes, once your wife comes to Germany and together you change your tax class to III, you can claim back tax return for 2018.
My colleague also had the same situation and they got all cumulated tax class difference at once.
Cheers
Hi FAIK, are you sure? Can you please double check? From information which I have from my colleague, both spouses need to be registered to live in Germany in order to apply for tax return for relevant year. If his wife come after 31.12.2018. I think they will not be able to apply together for 2018 tax return. I would be so happy that I am wrong, since I am in same situation like Marko. Can you please double check?
Hey, I just want to share a bit of my experience: I live in another EU country(country number 2), I am originally from another EU country(country number 1) and I am searching for a job, given that I have recently graduated from country number 2. It is my first & longest visit in Berlin(6 days) and I kind of grew found of it. I was considering moving here and I even spoke to some companies and they showed interest in me. Of course, in my opinion & experience, I went to Jobcenter. They not only did not speak anything but German, but they were also telling me that I need to register and wait 3 months. I was constantly repeating that I want informations, not benefits, but they did not get it. I asked them for a website where I can get the laws and they said there is none(is this 1018 or what?). Nevertheless whenever you are in doubt in the country, go to the police. So this afternoon I was in Alexanderplats and asking the police information(where do I find information about tax system, salaries and accomodation?). They were clueless!
So thank you very much for this website! As a person coming from outside, this is very helpful!
Hi I’m a student doing working student in company(900/month) and in restaurant ( 250€/month). For my main job I don’t have tax to be paid. But my total income is 1150€ will my tax category change from 1 to 6. Can someone help me with this. I’m quite worried if I’ll fall into category 6. Could you explain me. Thanks in advance.
Hi!
I´m a student in Portugal, and I´m right now taking one voluntary internship in Frankfurt for 6 months. I will receive the minimum wage (8,84/hour) for 35h/week. My category is the I (1st) but I don´t know if I will have to pay any wage tax.
Am I considered non-resident? (I register already in the city and I ´ll pay the heath, nursing, pension and unemployment insurances).
After the time I will be in germany, is it possible to receive the tax return?
Hey Ines, you are considered a German resident if you spend more than 6 months in the country. You will pay wage tax yes.
Hi guys!
I work here in Berlin full time and planning to do a photoshoot for which I get about 400 Euro in cash. Not sure if I should inform the tax office about this income or just keep silent? Any recommendations?
Thank you!
Hey Jaroslav. It seems that you are aware of the rules and that you should declare all income.
Thanks Bastien! Would you know by any chance how to do so? Is it a long crazy paper filling process?
I suppose this means you aren’t a freelancer?
Hello,
I am not a Tunisian citizen (married Status) and I am not a resident or hold an European nationality. I own an apartment in Germany which I rent for 454 Euro/month, which is wired into my German bank account. I know that the annual income is below the taxable amount, but do I have to do a tax declaration anyway?
Thank you for your answer.
Hey Alex, you pay your taxes here if you are a resident in Germany.
Hello,
I m a non-EU student having one mini job paying me 450 euros per month and another mini job paying me less than 450 euros so is it legal if i do two mini jobs? And what will be the tax situation? Please explain.
Hey Jigar. Aren’t mini-jobs always 450€ flat? It is legal to have mutiple mini-jobs yes. Tax situation doesn’t differ from a normal job.
Hello,
I am Here in Germany temporary, I will be participating in Shows making money I have my business license from my country and I pay tax there, Do I need to pay tax here in Germany as well?
Hey Xia. You won’t be German resident, so no.
Hi,
I came from India in the month of july and earning 60K per year in Berlin.
I just wanted to know about my tax class?
My wife came here after one month and she is not earning.We don’t have any child.
I got a reply by saying that ‘Your tax code is 4 and you do not have a tax code’
Can you please explain what does it mean?
Hey Hare. Have you had a look at this post already? It has more details about tax classes.
Hello,
I’m a full time employee, but i do some crafts as a hobby and sell online. Was not earning much till recently. But i’ve started making around 600-700€ per month now and I was wondering if i should include it for my tax. If so any idea how/where?
Thanks
Hi Paviash. You should definitely declare all income and if that amount is stable, you should probably register as a Gewerbe (Einzelunternehmer), which you can still have next to your full-time job. More info there.
Hello,
I am working as a student in two places,
The first job = 450 euro tax category 1 I don’t pay taxes from this one
The second job = 450 euro tax category 6 I am paying taxes from this one
According to my calculations, I will reach totally 9000 euro till the end of the year,
My question is 14% tax is related for the whole amount of more than 9000 for example if I earn 10800 euro I must pay 10800*14% = 1512 or
it is related to (10800-9000)*14% = 252 euro only.
That is an important question to me, because in the first case it is better to me, to quit one of my jobs and don’t exceed 9000
Thanks in advance,
Hey there. Income tax is already paid when you receive you payslip.
Hello Bastien,
Thank zou for this great platform.
I am a NON-EU Student and I am emplozed in Self emplozment contract. I am earning around 150 euros per month or 1500 euros per zear.In this case, I want to know if i have to file the tax since the income is less gthan 9000 euros per zear which is taxable.
Thanks in advance!
hi roger. yes, you need to file but you are below the taxable income threshold.
Hi
I live in Hamburg and I am expecting to receive a “fixed term” work offer soon in Berlin for either 6 months or 1 year.
My wife will join me here in Germany starting next month.
I will need a new apartment in Berlin, but me and my wife want to keep our place here in Hamburg as our main residence as I have spent quite some money to make it our home.
Is that an adequate reason for us to claim our living expenses in Berlin as Doppelte Haushaltsführung for the period of the work contract?
P.S: we’ll keep paying the rent for our apartment here in Hamburg and will come back every few weeks to see our friends.
Hey Mario. You’d be better off asking that to a Steuerberater.
Hello ,
Thank you for your explained tax topic ,
I would like to ask about a non-European student who is married but live in Germany without his wife and will work for only 4 months at amazon , is he going to pay tax and if he does under which category ?
Thank you ,
Hi Mo. Yes, he has to pay income tax, probably under class 1. See more here.
Hey Mo. Yes, everybody pays income tax. They will put you in the right category based on the information they have.
Hi,
I should move to Berlin from 01.08. Wife and kids will stay at home, outside EU, until they got a papers. Am I need to declare tax category 1 or 3? In case category 1, have I some opportunities for smaller tax amount because I have wife and kids outside EU?
Thanks
Hi Aleksandar. The Finanzamt will put you in the most appropriate category when you register. No need to worry about that for now. You can change the category when you partner registers here and your partnership is made official here too, if you want.
Hello over there .
Me and my boyfriend are blue card holders and we just got a full time job in Munchen . Me the woman earn 42000€ brutto per year and my boyfriend 45000€ per year . So we will get married this month so can you tell me please which categories should we choose after we get married and how much we will earn netto per both because I really don’t get it how much we will earn with these salaries neto . Thank in advance
Hi Emilie, have a look at this post about tax classes in Germany for your answers.
Hello all, I have a question regarding the Classes of Salary. Has I was investigating if I’m marryed I might drop for Class3 from Class1, meaning more money, ok. I’m Portuguese, if I get marryed here and my wife stays in Portugal making the discounts but I discount to Germany, I get to class3? Or my wife should be also discounting to Germany? Dunno if you understood my question.
Thanks
Hi Paulinho. I am not not sure. Have a look at this post here for more info. If both people are German resident, it would make most sense that one of you in on class 3 and the other is 5.
Hi,
I’m currently doing a master program in Germany. I do not work as my schedule is super packed this semester. However, I found a way to make some extra cash, it’s called domain flipping: basically, i buy domain names and then sell them at a higher price. Do you have any idea about whether there is a tax rate on the profit i make from this? assuming i do this just twice a year(a side hustle) and i make 2000 euros in total this year from selling 2 domain names.
Thank you in advance.
Hi Nina. You need to declare any income you have while being a resident in Germany. For any income below 8.600€ per year, there is no income tax applied.
Hello,
I paid tuition fees in 2014 & 2015 but started a full time job only from Jan ‘2017. Can the tuition fees be tax deductible for the income in year 2017?
With no income from 2014-16 it seems logical that I can claim tax deduction in 2017 when I actually started a full time job.
Appreciate your time in reading & replying to this…
Hi Raulph. You can do a tax return for 2017 and i believe put some or all of the tuition fees for that year, as “Ausbildung/Weiterbildung kosten” can be put off up to 3 or 4 years after the year the fees were paid. Better check that yourself but that would be possible in my opinion.
I am working as a werkstudent on student visa in an IT company and posses a student visa. In my allowed legal working hours, I am paying taxes and pension out of my salary (it gets automatically deducted). Does it count as taxes to apply for german settlement permit?
Hi Waqas. This goes beyond my knowledge i’m afraid.
I’m a US citizen who teaches yoga and does massage. I’ve been invited to teach in a German Yoga Studio for a limited engagement. I expect I’ll make 1000 € or
less. Am I required to pay into German taxes? I will be required to claim my income on my US taxes.
Hi Michelle. You are not a German resident and i suppose you will bill from your US business, so no is probably is the answer.
Hi, I am trying to send my taxes through Steuergo.de online submission and I am told that my pin isn’t right. I don’t really remember ever creating a pin. Do you know anything about this.
Hi Mary. Get in touch with their customer support about this.
Any idea on the tax rules if you own a property abroad (within EU) which is rented out.
What happens if you sell it, do you pay tax to germany?
Hi Mel. You should probably get in touch with an expert about this. If you are a German resident, you need to pay income tax, regardless of the income’s source or location.
Any income that you receive no matter from where in the world, is taxable in Germany if you spend more than 181 days on German soil. If you already paid taxes in the place where your property is located, you need to contact the tax office and check if there is a double-taxation agreement between Germany and this country. If there is one, you can either be exempted or claim the double-paid amount back. Otherwise things will get complicated and you leave money on the table.
Is it correct that the steuerklass is important just for the monthly paid tax that is being deducted from the paycheck every month (like pre payments), and that at the end of the year after reporting the actual income to the finanzamt, they will calculate how much tax we were supposed to pay according to the real income? If it’s true, how can I know how much tax me and my wife have to pay at the end?
HI Aaron. The statement at the end of year allows you to adjust the total taxable income by declaring tax relief items, or else additional income. You can see the difference in taxable income by using simulation apps like this one here for example.
I live actually in Berlin and I’m rich. I’m doing privately online also, occasionally, for free art consultings. Comes eventually who can feel, voluteer donations. The donations comes in my german bank account. Do I have to pay taxes on this donations that comes from artists?
Hi there. Donations are still considered an income and must be declared as such, probably as results of a “Liebhaberei/Hobby”. Source
Respected sir/madam,
Could you help me please, I want to know about tax class I am married and I have 4th class. I have one part time job if I do one more part time job then my tax class would be changed or not?
Thanks in advance!
Hi Iqbal. It depends who is the biggest earner (3/5) is your couple, or if you are eearning the same (4/4 for each)
Thanks so much sir for replying.
Hi, I have a question too, if you can help me out 🙂
I will be working in Berlin for 6 months next year, as a Erasmus student.
I will work full time for 1550 Eur, personal insurance and liability insurance will be covered by me, and accident insurance by my company.
As I understood from researching, I will belong to the 1st class of taxes, but I am interested if students have some special procedure for taxing?
Thank you in advance,
Hi Meggie. Students can apply for a tax return the same way as employees.
Hi ,
My question is realted to tax class change .
Currently I am liviing in Munich
I am married person having one child.
My family will join me in the next month i.e. Dec 2017.
I will apply for tax class change from tax class 1 to 3.
If i change my tax class to 3 , am I eligible for tax refund according to tax class 3 or tax class 1 for year 2017?
Hi Amit. No, your tax rate will be different for that one month only.
Hello,
there are some interesting questions here and I would like to get involved as well.
I am currently living and working in Munich and I am a British citizen. I am thinking about buying an apartment in Munich and I want to rent it out.
As soon as I buy the apartment I want to move back to the UK and rent out the apartment.
Let’s say for argument sake that my monthly rental income is 1000 Euros. How much tax would I have to pay annually?
Hi Tsvet, there are so many factors impacting this; impossible for me to say. Depends on your situation as a tax payer and the local tax laws in Bayern.
Hey,
I have a question, can you please answer as soon as possible, it’s really important….I am currently working a mini job (30 hours a week), that will end on 14.01.2018. And I just found a new job (full-time job, 40 hours a week). I plan to stop the mini job after the expiration of the contract.
My question is, can I do both jobs at the same time? what will my tax situation be?
Thank you for anticipated answer and suggestion.
Best regards
Hi Emma. Yes, you can have both occupations at the same time as long as both employers know and agree to the other job in the contract. From a tax perspective, it doesn’t change your tax class but you have to make sure you are allowed to work these many hours.
But if you are taking pay from two jobs at a same time , You will be in tax class 6 ?
Hello,
I need to understand Rentenversicherung concept. I have started to deduct from my salary every month as I have the Blue card and they asked me that I should pay Rentenversicherung which i had started. But how and when i can get this money back ?
Will i get back whole money ? or German rules deduct something. please explain in detail.
Thanks
SS
Hi Sabah, this is not income tax although it is deducted from your salary also. This money goes to your public pension scheme. You can transfer these rights to your home country’s scheme if there is an agreement between both countries.
Hello,
I have a question,
I am working right now in a social year Freiwilligensocialjahr – bethel and they pay my taxes, so my question is if I finish it or stop working, do I need to pay tax or not?
If yes how do I inform myself about it?
Max
Hi Max, you won’t need to pay extra income taxes if that’s what you ask. Inform yourself about it by googling it or by asking your whoever employs you.
Hi, I moved to Berlin in July 2016 and was officially registered in the same month. I’m on a part time contract with an employer outside of Germany and that’s my only source of income. So when am I supposed to pay my first instalment of income tax?
As a German resident, you will need to declare this income as part of your Steuererklärung. To avoid double taxation, you will need to submit a “Doppelsteuerabkommen”; a bilateral agreement with whatever country where your employer is.
Hi,
I have question.
I work on a cayman island registered vessel as a seaman.
And I live in germany.
The company that pays me is from outside Germany.
And I want to get paid into my german bank account.
Will I just have to pay regular income tax
over that?
Best
Yon
Hi Yon. That would a question for an expert, especially if work on international waters registered under a cayman island pavillon. You might have to prove that you paid your income tax already. Ask a Steuerberater.
Hello,
What would be the expected tax over a received severence payment? My employer might compensate me with up to 3 yearly salaries for a mutual cancelation of my working contract, but I am not aware how much tax over the gross amount I will have to pay.
Thanks in advance!
Hi Ina. This would account for an extra-ordinary income. A quick search uncovered this tool to calculate what would be left from your severance payment (“Abfindung”).
Your website is really really helpful. Well explained , with humour and lightness….just what this topic needs.
Thank you very much.
Yasmines
Hi,
I have a question regarding changing tax category, but as I didn’t found a more a appropriate place in this internet site I’m posting it here.
I have been in Berlin from almost 3 month, and at the end of this month I got married. My wife has not joint me yet as her reunion visa will be ready only in September. My question is if I can already change my tax category so that I can reduce my taxes?
Thanks in advance
Hi Mandi. It would only make sense if you were to wait for your wife to be here to change your tax class. Having a different tax class than your wife is only cutting your taxes if you married in the eye of the German law, and if she has a much lower income than you. When those 2 conditions are fulfilled, then you can switch.
“tax-level between 14 % to 42 %” is totally useless if one wants to calculate the income tax.
+1
Thank you …..
Hi. Usualy, Germany will not tax your Pension when it is already taxed in the UK. But it will take it into consideration when determining the tax rate on any other income taxable in Germany (like employment income). This functionality is called ‘progression clause’. The actual effect on the German taxes will depend on the amount of your income taxable in Germany and, of course, the annual total of your income from the UK Pension.
Please note, the answer is just based on the rough facts of your questions. I agree with the general advise: ask a professional tax advisor with some experience on expat or international tax. Best, Alexander
Hello
What happens if you are living on a uk pension that is already taxed in the uk and is worth thruppence?
Cheers Sooty
The best might be to ask a Steuerberater. Whenever you have more than one income source, it’s best to go with a professional.