EinkommensteuerVoranmeldung

Einkommensteuer, or income tax, is a direct tax on the income of natural persons in Germany. It is governed by the Einkommensteuergesetz (EStG) and administered by the Finanzämter (local tax offices). Income subject to tax includes wages, salaries, self-employment, rents, and capital income, subject to reductions and allowances that lower the tax base.

The tax base is called zu versteuerndes Einkommen after deductions such as Werbungskosten (expenses for earning), Sonderausgaben (special expenses), and general allowances. The system applies a progressive rate structure, with higher incomes taxed at higher marginal rates.

Germany imposes a top marginal rate of 45 percent for very high incomes, with additional charges such as the solidarity surcharge and, in many cases, church tax depending on residence and religious affiliation.

Tax collection is initially via the employer through Lohnsteuer, a prepayment of the final tax. Many employees do not file a separate return unless they have additional income or deductions. Others file the Einkommensteuererklärung with the Finanzamt; after assessment, taxpayers may receive a refund or owe additional tax. The system also includes tax classes (Steuerklassen) that influence withholding, and allowances such as the Grundfreibetrag and Kinderfreibetrag.

Relation to other taxes: In Germany, corporate income is taxed under Körperschaftsteuer rather than Einkommensteuer; capital income may be taxed under Abgeltungsteuer; the Einkommensteuer interacts with social security contributions and other levies.