German Tax Vocabulary: Expat Guide

General Core Terms

    Einkommensteuererklärung (Tax Return): The annual declaration of your income to the tax authorities (Finanzamt) to determine the final tax liability.

    Steuernummer (Tax Number): A local tax ID assigned by your city's tax office for processing your specific returns.

    Steueridentifikationsnummer / Steuer-ID (Tax ID): A permanent, lifelong 11-digit number for tax purposes in Germany (stays the same even if you move).

    Finanzamt (Tax Office): The regional government authority responsible for collecting taxes.

Income & Deductions (The "Big Three")


German Term                                     English Equivalent                                                     Explanation


Werbungskosten                              Income-related expenses                            Costs incurred to acquire, maintain, or secure your                                                                                                                                          income (e.g., commute, work equipment).


Sonderausgaben                                Special expenses                                  Private costs that are tax-deductible for social reasons                                                                                                                                    (e.g., health insurance, pension contributions, church tax).


Außergewöhnliche Belastungen      Extraordinary burdens                         Unavoidable, high private expenses (e.g., high medical                                                                                                                                       bills not covered by insurance, support for relatives).

Specific Professional Terms

  • Bruttoarbeitslohn (Gross Salary): Your total earnings before taxes and social security contributions.
  • Lohnsteuerbescheinigung (Annual Tax Statement): The document your employer provides at the end of the year summarizing your earnings and taxes paid.
  • Arbeitnehmer-Pauschbetrag (Employee Lump-sum Allowance): An automatic tax deduction of €1,230 (standard for 2024/2025). You only need to provide receipts if your expenses exceed this.
  • Entfernungspauschale (Commuter Allowance): Often called "Pendlerpauschale." You get a deduction for every kilometer of the one-way distance to work.
  • Verpflegungsmehraufwand (Per Diem / Meal Allowance): Fixed rates you can claim for meals when working away from your home or primary office (e.g., business trips).

Family & Status

  • Steuerklasse (Tax Class): A category (1 through 6) that determines how much monthly tax is withheld from your salary, based on marital status and children.
  • Kinderfreibetrag (Child Tax Allowance): An amount of income that is tax-free for parents, evaluated by the tax office against the "Kindergeld" (child benefit) you already received.
  • Kirchensteuer (Church Tax): A tax (8-9%) levied on your income tax if you are registered as a member of a recognized church (Catholic/Protestant).

The Final Result

  • Steuerbescheid (Tax Assessment Notice): The official letter from the Finanzamt stating whether you get a refund or owe additional taxes.
  • Steuerrückerstattung (Tax Refund): The money you get back after the Finanzamt processes your return.
  • Vorauszahlung (Prepayment): In some cases (like freelancers), the tax office requires you to pay estimated taxes quarterly.
Note on Professional Help: If your tax situation involves foreign income (Global Income Principle), it is often wise to consult a Steuerberater (Tax Consultant).