How much tax refund in Germany? Calculation and necessary conditions

15/04/2025
Hong Hanh
News study abroad in Germany
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How much tax refund in Germany? This is a familiar question for many Vietnamese people living and working in Germany, especially when starting to learn about the complex tax system here. In fact, tax refunds are not only a legal right but also help you optimize your personal finances if you know how to exploit them properly. Let's join SHD Academy Learn more about the regulations, calculations and tax refund procedures in Germany in the following article!

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What is a tax refund in Germany?

In Germany, personal income tax in Germany (Einkommensteuer) is one of the main sources of government revenue, collected directly from employees and legal residents. Whether you are a full-time employee, freelancer or student, when you earn income in Germany, tax is usually deducted automatically every month from your salary.

However, in many cases, you can get some or all of the tax you paid back. A tax refund occurs when your total income for the year is below the tax threshold or if you have eligible expenses that are tax deductible, such as travel expenses, education expenses, insurance, etc.

To understand better, you need to distinguish between the following two concepts:

Tax declaration (Steuererklärung): This is the step where you declare to the tax office (Finanzamt) all your income and eligible expenses for the year. Tax declaration can be voluntary or mandatory depending on your personal situation.
Tax refund (Steuerrückerstattung): Based on the information you declared, the tax office will recalculate and refund the amount of tax you overpaid (if any). The amount of this refund depends on your actual income and allowable deductions.

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Thực tế hoàn thuế ở Đức được bao nhiêu — *Tax refund is the amount of money the tax authority refunds to taxpayers whose income is below the tax threshold (Source: Collected)*

Taxes applicable to workers and students

To be able to file your taxes and get your refunds effectively, it is essential to understand the common taxes. In Germany, common taxes include:

Personal income tax (Einkommensteuer): This is the main tax that applies to anyone earning above the tax-free threshold — around €11,784/year (as of 2024).
Solidarity surcharge (Solidaritätszuschlag): This is a surcharge equivalent to 5.5% of income tax. However, most students who work part-time with low income are usually exempt from this.
Religious tax (Kirchensteuer): If you declare yourself a member of a religious organization, you'll have to pay an additional $8–$91T in income tax, depending on your state of residence.

Tax refund conditions in Germany

Who can file a tax refund claim?

Any individual with taxable income in Germany can apply for a tax refund if they meet the legal requirements. Here are some common groups:

Full-time employees: Income tax is usually deducted directly from your monthly paycheck. If you have eligible expenses, you may be able to get a refund of some of the tax you paid.
Part-time students: If their annual income does not exceed the tax-free limit, students will usually receive a refund of almost all of the tax withheld.
Freelancers: As long as you have legal income and complete tax declarations, you are also entitled to claim a tax refund.

Conditions on residence time and income

To qualify for a tax refund, you must meet the following criteria:

Residing in Germany for 183 days or more during the year: This is to determine whether you are a tax resident in Germany.
Have a valid source of income: Including salary, self-employment income, scholarships or taxable grants.

Note: Make sure you have been resident for a sufficient period and have fully declared your income, as any omissions in these elements may result in difficulties in claiming a tax refund or even having your tax refund refused.

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Vấn đề hoàn thuế ở Đức được bao nhiêu — *To apply for a tax refund in Germany, you need to reside for at least 183 days and have a valid source of income (Source: Collected)*

Documents required for tax refund

When carrying out tax refund procedures, you need to prepare the following documents:

Salary certificate (Lohnsteuerbescheinigung): Income tax certificate issued by the company or workplace.
Receipts and invoices for related expenses: Such as housing costs, study equipment, travel for work, etc.
Personal tax identification number (Steuer-ID): Issued when you first register as a resident in Germany and used for tax management throughout your stay here.

Instructions for submitting tax refund applications in Germany

Filing a tax refund requires accuracy and completeness in preparing the necessary documents. Here are the basic steps you need to follow:

Step 1. Collect necessary documents:

Invoices and receipts demonstrating valid expenses.
Salary certificate issued by the company.
Register for a tax account via the ELSTER online system (Germany's electronic tax portal).

Step 2. Declare valid income and expenses:

Use the standard tax return form (Einkommensteuererklärung).
Fill in your financial information and select items to deduct expenses.

Step 3. Submit the tax refund application by submitting it directly to the tax office (Finanzamt) or submitting it online via:

ELSTER: This is Germany's official and free tax portal, widely used for filing tax returns.
Tax support software (Taxfix, WISO Steuer): These software make tax calculation and declaration easy thanks to their user-friendly interface and automatic features.

How to calculate tax refund amount

To know How much tax refund in Germany?, you need to rely on factors such as total taxable income, eligible deductible expenses and how the progressive tax rate applies. Here is a specific example to help you visualize the calculation better:

Determine total taxable income: This is the income you receive after tax exemptions have been deducted. For example, if you are a single worker, the personal tax exemption is 11,784 Euros/year (as of 2024).
Note: If your total income is below this tax-free level, you will receive a full refund of the tax you paid.

Calculate actual tax payable: Based on your income after all eligible deductions, you apply progressive tax rates to calculate the amount of tax you owe.
Compare deducted tax and actual tax: The refund amount will be the difference between the tax withheld during the year and the actual tax you paid.

Alternatively, you can calculate your expected income tax rate using income tax and payroll calculator provided by the German Federal Ministry of Finance.

Example of freelancer:

Annual income: 15,000 Euros
Tax deducted: 1,800 Euro
Deductible expenses (working tools, business expenses): 3,000 Euros
Taxable income: 12,000 Euros
Actual tax payable: 1,200 Euro
Tax refund amount: 1,800 Euro – 1,200 Euro = 600 Euro

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Giải đáp hoàn thuế ở Đức được bao nhiêu — *Based on taxable income, eligible deductible expenses and progressive tax rates to calculate the tax refund amount (Source: Collected)*

Some questions regarding tax refunds in Germany

How do I know the deadline for filing a tax refund?

The deadline for filing a tax refund in Germany is usually July 31 of the following year. Specifically, the tax return for 2025 must be filed by 31/2025. If you cannot file on time, you can apply for an extension, up to September 30. However, you may be fined by the tax authorities for late filing.

How long does it take to receive a tax refund in Germany?

The time it takes to receive a tax refund in Germany ranges from 6 weeks to 6 months, depending on the complexity of the file and the amount of work the tax office is processing. To minimize the waiting time, you can consider using a tax consultancy service in Germany.

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Understanding the regulations and taking advantage of tax refund benefits not only helps you save money but is also an important step in managing your personal finances when living and working in Germany. SHD Academy Hope this article has partly answered the question "How much tax refund in Germany??” and provide you with the necessary information on the procedure and how to calculate the tax refund amount. Don't forget to visit the section News belong to SHD Academy to update more useful shares about the program vocational training in Germany and life in this beautiful country!

I passed the university entrance exam in Vietnam but chose Germany because I felt this was the direction I wanted to take. Thanks to studying at SHD, I can communicate in German fluently...