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Summary: in Germany, income tax for employees is deducted directly from salary, and the amount depends on the tax class (Steuerklasse). By filing a tax return (Steuererklärung), most employees get back part of the tax they paid. In 2026 income up to €12,348 (the Grundfreibetrag) is tax-free, and the deadline for the 2025 tax return without a tax advisor was 31 July 2026.
Tax numbers: Steuer-ID and Steuernummer
- Steuer-ID (Steuerliche Identifikationsnummer): a permanent 11-digit number that is mailed to your address after Anmeldung. Your employer needs it to pay your salary.
- Steuernummer: the number the local tax office (Finanzamt) gives you for the tax return or a freelance business.
Tax classes (Steuerklassen)
- Class I: singles, divorced people and spouses whose partner does not live in Germany.
- Class II: single parents (Alleinerziehende) living with a child – with an additional allowance.
- Class III: married couples where one earns much more or the other has no income.
- Class IV: married couples with similar incomes (the IV/IV combination, or IV with the “Faktorverfahren”).
- Class V: the second spouse in the III/V combination.
- Class VI: a second job; the highest tax deduction.
Important note for Iranians: if your spouse is still in Iran, you are usually in class I. After your spouse arrives and you register a shared address, you can apply to change to III/V or IV/IV by presenting your marriage certificate (with an official translation). This can make a difference of several hundred euros per month.
What other deductions are taken from your salary?
In addition to income tax, the following are deducted from your gross salary (Brutto): pension insurance, unemployment insurance, health insurance and long-term care insurance (Pflegeversicherung), and, if you are a church member, church tax (8 or 9 percent of income tax). Net salary (Netto) is usually about 60 to 70 percent of gross. Read about health insurance here.
The tax return: why is it worth it?
For most employees filing a tax return is voluntary, but the average tax refund in Germany is several hundred euros a year. Filing is mandatory in these cases: the III/V tax class combination, having a second job (class VI), receiving more than €410 of “replacement income” (such as Elterngeld, Kurzarbeitergeld or unemployment insurance), and additional freelance income.
Expenses you can deduct
- Work-related expenses (Werbungskosten): €1,230 is automatically applied without receipts; if your costs were higher, declare them with receipts.
- Commuting costs (Pendlerpauschale): from 2026, 38 cents per kilometre of the one-way distance from home to work for each working day.
- Working from home (Homeoffice-Pauschale): €6 per day, up to a maximum of €1,260 per year.
- German language classes and training courses related to your job.
- Job-related moving costs, including in some cases the cost of migrating for a job.
- Costs of translating and evaluating documents for work.
- Charitable donations, childcare costs and household services.
Deadlines
If filing is mandatory for you, the deadline is 31 July of the following year; with a tax advisor or an income tax assistance association (Lohnsteuerhilfeverein) the deadline is extended to the end of February or early March of the year after. If it is not mandatory, you have four years; that is, you can still file the 2022 return until the end of 2026.
Tools
- ELSTER: the tax office’s free official portal (requires registration and an activation code sent by post).
- Tax software and apps: step-by-step guidance, some with an English interface.
- Lohnsteuerhilfeverein: for employees, with an annual membership fee based on income.
- Tax advisor (Steuerberater): for complex cases, foreign income or freelance business.
Child benefit (Kindergeld)
In 2026 Kindergeld is €259 per month per child and is applied for through the Familienkasse of the employment agency. To receive it, both the parent and the child need a Steuer-ID, and a non-European parent usually needs a residence permit that allows work.
Frequently asked questions
Which tax class am I in if my spouse is in Iran?
Usually class I. As long as your spouse does not reside in Germany or the EU, class III cannot be chosen; however, in some cases there are allowances for supporting a spouse or family abroad.
Can I deduct the cost of supporting my parents in Iran?
Under certain conditions yes, as “Unterhaltsleistungen” with a fixed cap and according to the country factor. Proof of money transfers and of the recipient’s financial need is required; check with a tax advisor.
How much income is tax-free in 2026?
€12,348 per person (the Grundfreibetrag) and double that for couples filing jointly.
In which language must I write the tax return?
The official language of the tax office is German. Foreign documents may need translation.
Looking for a Persian-speaking tax advisor? Search the directory of Iranian businesses in Germany.
This article is not tax advice. The figures are for 2026 and may change. Last updated: September 2026.
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