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Tax in Germany

Your personal tax guide for Germany

The content in this tax guide is provided by EY.

Going to or leaving Germany

Local tax information for Germany

Local information Details

Tax authority

Federal Ministry of Finance, Local German tax office

Website

www.bundesfinanzministerium.de

Tax year

1 January to 31 December

Tax return due date

31 July.  Extension due to COVID-19 from 31 July 2021 to 31 October 2021 for 2020

Is joint filing possible?

Yes, subject to election (for German residents only but with special rules for EU citizens and citizens of EEA countries)

Are tax return extensions possible?

28 or 29 February following (if the return is prepared with the help of a German tax adviser). Longer extensions given only in very exceptional cases

Local tax information for Germany

Local information

Tax authority

Details

Federal Ministry of Finance, Local German tax office

Local information

Website

Details

www.bundesfinanzministerium.de

Local information

Tax year

Details

1 January to 31 December

Local information

Tax return due date

Details

31 July.  Extension due to COVID-19 from 31 July 2021 to 31 October 2021 for 2020

Local information

Is joint filing possible?

Details

Yes, subject to election (for German residents only but with special rules for EU citizens and citizens of EEA countries)

Local information

Are tax return extensions possible?

Details

28 or 29 February following (if the return is prepared with the help of a German tax adviser). Longer extensions given only in very exceptional cases

2020 income tax rates

2020 taxable income bands

Taxable income band EUR National income tax rates for individuals

0 to 9,408

0%

9,409 to 57,050

14 - 42%

57,051 to 270,500

42%

270,501 +

45%

2020 taxable income bands

Taxable income band EUR

0 to 9,408

National income tax rates for individuals

0%

Taxable income band EUR

9,409 to 57,050

National income tax rates for individuals

14 - 42%

Taxable income band EUR

57,051 to 270,500

National income tax rates for individuals

42%

Taxable income band EUR

270,501 +

National income tax rates for individuals

45%

A 5.5% solidarity surcharge is imposed on the income tax liability of all taxpayers.

If a German tax resident is a member of a church entitled to impose church tax, church tax is assessed at a rate of 8% or 9% on income tax liability, depending on the location.

Investment income is tax-free in an amount of EUR801 per year for a single taxpayer (EUR1,602 per year for a married couple filing jointly). Investment income is taxed at a flat tax rate of 25%, which must be withheld at source by the payer.

Certain income that is not taxable is taken into account in determining the tax rate on German taxable income. This inclusion rule is known as the "tax exemption under progression clause". For example, individuals who move to or leave Germany within the calendar year must take into account foreign income earned either before becoming a German resident or after leaving Germany in determining the tax rate on their German taxable income.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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