Taxes and the Finanzamt

The Steuer-ID (Steueridentifikationsnummer) is your permanent personal tax ID. It arrives by post after your Anmeldung and never changes.

The Steuernummer is issued by your local Finanzamt for filing and can change if you move, start a business, or file a joint tax return with your spouse. Employers need your Steuer-ID, while the Finanzamt uses the Steuernummer on its letters.

Your tax class (Steuerklasse) affects how much wage tax is withheld from your salary each month. It changes your monthly take-home pay, not your final tax, which is settled when you file.

• Class I: single with no children.
• Class II: single parents.
• Classes III and V, or IV and IV: married couples, depending on their incomes.
• Class VI: a second job.

If your spouse lives outside Germany, you are often placed in class I at first.

Depending on your situation, and especially if your spouse lives in the EU or EEA, you may be able to apply for more favourable treatment when you file. This is a common case worth checking with a tax adviser (Steuerberater).

Not everyone must, but many people benefit from filing. You generally must file if you had more than one employer, certain wage-replacement benefits (such as Elterngeld, Kurzarbeitergeld, or Arbeitslosengeld), rental income from a property you own, self-employed or freelance income, income from abroad, specific tax-class combinations (such as III and V), or if the Finanzamt asks you to.

Even when filing is optional, employees often receive money back. The normal deadline is during the following year, and it is later if a Steuerberater files for you.

Common deductions include commuting costs, work equipment, some insurance, moving for work, and, in some cases, support you send to close family.

If you own and rent out an apartment, you can also deduct rental-related costs, such as repairs and maintenance and loan interest, and some of the costs from buying it, which are usually deducted over time through depreciation (Abschreibung).

You can file online through the official Elster portal or with a Steuerberater. Keep your receipts and your Steuer-ID handy.

If you registered as a member of a tax-collecting religious community, often noted during your Anmeldung, the Finanzamt adds church tax, usually 9 percent of your income tax, or 8 percent in Bavaria and Baden-Württemberg.

It mainly applies to members of the Catholic Church, the Protestant (Evangelical) Church, and some Jewish communities. Many other groups do not levy it, including Muslim, Orthodox, and Buddhist communities and most free churches, and you pay nothing if you have no religious affiliation.

If you are not a member and it still appears, check what you entered at registration. You can formally leave the church (Kirchenaustritt) to stop it, which takes effect going forward.

Many Finanzamt letters need action, so check each one for a deadline. A tax assessment (Steuerbescheid) has a one-month window to object (Einspruch) if something is wrong. A request for documents needs a reply.

If you are unsure whether a letter needs action, treat it as if it does, and note the date.

In your final year you usually still file a German return for the time you were resident here. After you leave, income from German sources can still be taxable in Germany.

Tax residency and double-taxation rules depend on your situation, so if you have income in two countries, it is worth getting advice before you file.