SteuerGo FAQs

Tax return 2025: What's new

Each year, tax changes and new regulations come into effect. Below, we present the key updates for your 2025 tax return that you should keep in mind.

Submission deadlines for the 2025 tax return

The tax return for 2025 must be submitted to the tax office by 31 July 2026 if there is a legal obligation to do so (§ 149 para. 2 AO). If submitted by a tax advisor, the deadline is automatically extended to 28 February 2027. For a voluntary submission (assessment upon application according to § 46 para. 2 no. 8 EStG), there is more time: The deadline is 31 December 2029. Within this period, a tax return can be submitted retroactively without the risk of late fees.

Tip: Find out if you are obliged to submit a tax return here.

Basic allowance 2025: Minimum subsistence level increases

The tax basic allowance ensures that the minimum subsistence level is not taxed (§ 32a EStG). As of 01.01.2025, the amount has been increased to 12.096 Euro.

Income tax rate 2025

To avoid a gradual tax increase due to inflation, the income tax rate will be adjusted by 2.5% for 2025. This means higher tax rates will only apply to correspondingly higher incomes.

Family support 2025

Child benefit

Child benefit will be increased to 255 Euro per child from January 2025 (previously: 250 Euro). Payment is made regardless of income. The child's tax ID must be provided.

Child allowance

As part of the more favourable assessment, the child allowance is considered as an alternative to child benefit. The child allowance in 2025 is 6.672 Euro per child (3.336 Euro per parent). The BEA allowance remains unchanged in 2025 at 2.928 Euro.

 

Further relief

• Training allowance: Unchanged at 1.200 Euro (since 2023)
• Relief amount for single parents: 4.260 Euro plus 240 Euro for each additional child (§ 24b EStG)

New tax benefits for children living abroad

From 2024, tax benefits such as the child allowance, the BEA allowance (care, education, training) and the training allowance will no longer be reduced if the child lives in an EU or EEA country. A reduction will only apply to children in non-EU countries. Depending on the country, the allowance can be reduced by up to three-quarters. This change is based on a ruling by the European Court of Justice (ECJ) to prevent discrimination in family benefits within the EU.

Employees

Flat rate for income-related expenses remains at 1.230 Euro

The employee allowance will also remain at 1.230 Euro in 2025 (§ 9a no. 1 EStG). It is automatically taken into account if no higher income-related expenses are proven. No proof is required.

Meal allowances (domestic & abroad)

Meal allowances can be deducted as income-related expenses for business trips or reimbursed tax-free by the employer:

• Domestic:
  • From 8 hours: 14 Euro
  • From 24 hours: 28 Euro
• Abroad: Country-specific allowances according to BMF letter dated 02.12.2024 (valid from 2025).

Overnight allowances can only be reimbursed tax-free by the employer. Own income-related expenses only possible with actual proof.

New overnight allowance for truck drivers

Truck drivers who sleep in the lorry can claim 9 Euro per day (§ 9 para. 1 sentence 3 no. 5b EStG) as income-related expenses in addition to the meal allowance.

Job-related relocation

For job-related relocations, various costs can be deducted as income-related expenses, e.g. transport, rental or estate agent costs. The following allowances apply for other relocation expenses (from 01.03.2024, also valid in 2025):

Group of persons	Allowance
Person moving	964 Euro
Each additional person (e.g. spouse, child)	643 Euro
Unfurnished flat	additional 193 Euro

Tutoring costs for children can be deducted up to 1.286 Euro if they were necessary due to the move.

Mini-job limit 2025

The mini-job limit will rise to 556 Euro per month in 2025 (previously: 538 Euro). The reason is the higher minimum wage of 12.82 Euro per hour, which has been in effect since 01.01.2025. The limit is dynamically adjusted to the minimum wage.

People with disabilities

Disability allowance: Only digital application from 2025

The disability allowance can only be applied for electronically from the 2025 tax year. A paper copy of the assessment notice is no longer required – the data is either automatically transmitted or entered directly in the ELSTER portal. Read more in the article Disability allowance only digital application from 2025.

New brochure: Tax tips for people with disabilities

The Federal Ministry of Finance has published a new free brochure providing a compact overview of tax benefits for people with disabilities. It includes information on allowances, travel expenses, extraordinary burdens and other relief options. You can find the brochure in the article “New tax tips for people with disabilities”.

Household savings in residential care increased

From 2025, household savings in residential care will increase to 10.500 Euro per year. Read more

Capital gains

Saver's allowance still 1.000 / 2.000 Euro

The saver's allowance will also remain unchanged in 2025 at 1.000 Euro for singles and 2.000 Euro for married couples (§ 20 para. 9 EStG). Existing exemption orders have already been automatically adjusted. If you have not yet issued an order, you should do so to avoid unnecessary tax deductions through capital gains tax. A deduction of actual income-related expenses is still not possible.

Advance flat rate for accumulating funds 2025

For accumulating funds, an annual notional advance flat rate is taxed – regardless of the actual profit (§ 18 InvStG). For 2025, the base rate set by the Bundesbank is 2.56 %, resulting in an advance flat rate of 1.792 % of the fund value as of 01.01.2025. Taxation only occurs if there is an actual increase in value and does not apply if there is a tax exemption order or losses. Further information can be found in the article Advance flat rate for accumulating funds – applicable in 2024 and 2025.

Pension

Pensions: Taxation 2025

For new pensioners from 2025, 84% of the statutory pension is taxable. An income-related expenses allowance of 102 Euro is automatically deducted. Pensions remain fully taxable. The pension allowance for new pensioners will be reduced to 12.8%, maximum 960 Euro, plus a decreasing supplement.

The Federal Constitutional Court has dismissed the constitutional complaints regarding double taxation. As a result, the BMF is lifting the provisional status in tax assessments for pension taxation from 2025. More on this in the article “Pension taxation 2025: BMF removes provisional status in tax assessment”.

Tax certificate from the pension insurance

The German Pension Insurance issues an annual free certificate with all tax-relevant data on the pension – available online or by post. This certificate makes it easier to enter pension income in the tax return. Read more in the article Pension certificate for the tax return.

Additional income limits for pensioners

Pensioners can also earn unlimited additional income in 2025 – there is no legal limit on additional income. Restrictions only apply to disability pensions. Further information can be found in the article Earn more in retirement.

Support for dependants

For maintenance payments to dependants, a maximum amount of 12.096 Euro applies in 2025, reduced by the recipient's own income over 624 Euro per year (§ 33a para. 1 EStG). The recipient must also not have more than 15.500 Euro in assets. According to a BFH ruling (VI R 21/21), an advance payment does not count as an asset if it is received in the new year. More on the ruling and the asset limit

Support from 2025 only deductible by bank transfer

From the 2025 tax year, the tax office will only recognise maintenance payments made by bank transfer. Cash payments – even within the family – will then no longer be tax-deductible. Read more: Support for relatives – monetary payments only deductible by bank transfer

When are relatives considered needy?

Maintenance payments to relatives can only be deducted for tax purposes if they are considered needy in the tax sense. Income, assets and living situation play a decisive role Read more: Deduct support for tax purposes – when relatives are considered needy

Digital administration & tax assessment

Digital tax assessment mandatory from 2026

From 01.01.2026, tax assessments will be sent electronically – postal delivery will be discontinued. Find out what changes due to the new legal situation and how to keep track of your appeal deadlines in this article. Read more

Amend tax assessment with e-data

Since 2025, § 175b AO allows the tax office to automatically correct tax assessments retrospectively based on transmitted e-data (e.g. pension or wage notifications). Taxpayers no longer have to apply for such changes themselves, but should regularly check their electronic data. Read more

E-invoice: FAQ on the new VAT regulation from 2025

The e-invoice will be gradually introduced from 2025 for companies in the B2B sector. This particularly affects the electronic transmission of structured invoice data for VAT. The FAQ explains who is affected, what transition periods apply and how businesses should prepare.

Further tax changes

Health insurance bonuses: New 150 Euro rule from 2025

From 2025, health insurance bonuses are tax-free up to 150 Euro – with proof of health-promoting measures. Read more

Energy efficiency: BMF catalogue of energy measures

The new BMF catalogue for energy-efficient renovations regulates which measures are eligible for tax support – with many examples. Read more

Donations from 2025: Only deductible with register entry

Donations are only tax-deductible from 2025 if the organisation is listed in the recipient register. Read more

Purchase price allocation: New BMF tool for 2025

The BMF offers a new tool for determining building and land shares – particularly relevant for landlords and buyers. Read more

No tax deduction for victims of scams

Those who fall victim to fraud cannot claim the lost amounts for tax purposes – not even as an extraordinary burden. This has been decided by the Federal Fiscal Court. Read more