July 8, 2025, 3:15 pm | Read time: 3 minutes
Not everyone in Germany is required to file a tax return, but for many, it is mandated by law. Key factors include specific types of income, tax brackets, or professional circumstances. TECHBOOK explains who is affected, when filing becomes mandatory, and what deadlines apply.
Whether voluntary or mandatory, failing to submit your tax return on time risks significant penalties. A mandatory assessment may apply, especially with wage replacement benefits, multiple employment relationships, or registered tax allowances. Retirees and self-employed individuals are also affected under certain conditions.
Overview
Who is Required to Submit a Tax Return
In Germany, there is no general obligation for all taxpayers to submit a tax return. However, the Income Tax Act mandates a so-called mandatory assessment for certain groups. This applies in the following situations:
- Receiving wage replacement benefits (such as unemployment benefits, parental allowance) over 410 euros
- Additional income from rentals, capital gains, or pensions over 410 euros
- Simultaneous employment with multiple employers (tax class VI)
- Application of tax class combinations III/V or IV with a factor
- Registered tax allowances on wage tax
- Changing employers with additional payments like Christmas or vacation bonuses
- Received severance payments where the one-fifth rule was applied
- Loss carryforwards or carrybacks from previous years
- Unlimited tax liability despite residing abroad
Self-employed individuals and business owners are generally required to submit a tax return every year, regardless of their income level.
Also read: How to Request and Renew the Elster Certificate
Tax Return for Retirees and Pensioners
Retirees are required to submit a tax return if their taxable income exceeds the basic allowance. For 2024, this is set at 11,784 euros. This includes statutory pensions, rental income, or capital gains. A pension allowance can remain tax-free if established at the initial retirement entry.
Pensioners, whose benefits are considered income from non-self-employed work, must also submit a return—especially if they receive benefits from multiple employment relationships.
Also read: Income Tax 2025 – Changes for Private Households
Exceptions and Voluntary Submission
Additional income up to 410 euros annually remains tax-free. Between 410 and 820 euros, a so-called hardship compensation applies, leading to reduced taxation but potentially resulting in a submission obligation.
Even if not required, submitting a voluntary tax return can be beneficial. Refunds are often possible, especially when claiming work-related expenses, special expenses, or extraordinary burdens.
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Deadline for Tax Return Submission
During the pandemic years, citizens had more time to submit their tax returns to the tax office. However, this extension no longer applies. Those required to submit a tax return annually must do so by July 31 of the following year. For the 2024 tax year, the deadline is July 31, 2025.
The tax return can be submitted digitally via the Elster portal or using tax software. We have a list of good apps in a separate article. Those needing assistance can also turn to tax advisors or income tax assistance associations, which extends the deadline. For the 2024 tax year, the deadline is April 30, 2026, unless the tax office explicitly requests an earlier submission. Voluntary submissions can be made up to four years later—by December 31, 2028, for the year 2024.
Late submissions may incur late fees of at least 25 euros per month or fines up to 25,000 euros. If no submission is made, the tax office may estimate the tax—usually to the taxpayer’s disadvantage.