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Our blog has basic information to get you started to understand tax items related to your situation.

Tax Rates on Income In Germany

Annual income of less than 9,984 € is not taxed at all. Income tax starts with 14.00% and gradually goes up to 42.00% (top tax rate applies to taxable income of more than 58,597 €). The amounts double for married couples filing joint returns. As your income goes up, the tax rates go up. This…


How Does Marriage Affect Taxes in Germany for Expats?

In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to…


How to Obtain and Use A “Lohnsteuerkarte” Tax Card

The “Lohnsteuerkarte” tax card was disposed at the beginning of 2013 and replaced by the “ElektronischeLohnsteuerAbzugsMerkmale” (ELStAM). ELStAM contains information whether you are married, what tax class you are in, whether you have children and whether you are paying church tax. Each employer has monthly access to this information to be able to work out…


How the New US Tax Plan Impacts You

On December 20th, 2017, the United States Congress approved sweeping new changes to the US Tax Code. While many of the changes impact taxes for the 2018-2019 tax filing season, there are a number of changes that took effect even before. As an expat, understanding these upcoming changes is the key to help you better…


Can I Get German Pension Contributions Refunded After I Leave Germany?

The most frequent situation we come across for the purposes of getting German pension contributions refunded is the following: – You have worked in Germany as a regular employee for less than 60 months – You have paid into the German pension system during this time – You do not hold an EU citizenship – You…


When Are Taxes Payable in Germany?

Income tax is paid by employees on a monthly basis at the source through a withholding mechanism. Self employed individuals need to make a projection of their income for the tax year. Based on this projected figure, the tax office will work out a preliminary tax bill. This tax bill is then paid in four…


Foreign Income

Is Foreign Income Taxed in Germany? If you live and work in Germany you are usually taxable in Germany on your foreign income worldwide. All your income needs to be reported to the German authorities.  If you have income outside of Germany the Double Taxation Treaty between Germany and the country where your income comes from…