Below are some other examples which you may claim as tax-exempt: I paid for their flight cost from Hong Kong to Germany and I could actually claim this cost as tax-exempt. They took care of our kid while we were at work. For example, I invited my parents to come to visit me for a month in August last year as the nursery was closed. I am sometimes surprised about the types of expenses I can claim as tax-exempt. Read also: Having a baby in Germany – From pregnancy to postnatal care Tax deductions in GermanyĮven though the tax rate in Germany is very high, the good news is that you can also claim a lot of different payments as tax-exempt. If you want to change your tax class, you can request the change at your local tax office. The best would be to use tax class 3 once you know you are pregnant, or even better, when you are planning to be pregnant. Note that you need to be in tax class 3 very early during your pregnancy because the amount of parental allowance is based on your net salary seven months before your maternity leave. Therefore, you may get a higher parental allowance (Elterngeld) later on, since the calculation of this allowance is based on your net salary. Your net salary will be higher because of the lower rate in tax class 3. Your tax class may also affect the social benefits that you may getįor example, a tip would be to use tax class 3 once you know that you are pregnant. The total amount of tax you have to pay in the end as a married couple will be the same no matter which tax class you choose.
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The choice of your tax class impacts your free cash flow. If both of you have a similar income, you can both choose to be in tax class 4.
This implies that your partner needs to have tax class 5, where a higher rate will apply. The tax class is important especially for married peopleįor example, if you earn significantly more than your partner, you can choose to be in tax class 3, where a lower rate will be taxed on your income. Married with a lower income than the partner. Married with a higher income than the partner. Below is a brief description of the different tax classes. If you are not sure about which tax class you are in, you can have a look at your annual wage and tax statement “Lohnsteuerbescheinigung” provided by your employer. A tax class defines the amount of tax to be deducted from your salary. When you first registered in Germany, you will be assigned a tax class.
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Actually, people who work in Germany on average get back around 1,000 EUR tax refund. You can possibly claim back quite some tax back by filing a tax return in Germany. As you probably know, Germany has a high income tax rate. Welcome to Germany!Įven though it can be stressful and annoying, in many cases, it is worthwhile to submit a tax return in Germany. I went to the local tax office and was given a lot of tax forms which I couldn’t read as everything was only in German. Honestly, I had no idea how I could do it. I did an internship during my master studies in Germany and later on, I realized that I had to submit a tax return (Steuererklärung). Tax is not a fun topic, especially when you are in a foreign country.