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 be aware of.
Submission deadlines for the 2025 tax return
The tax return for 2025 must be submitted to the tax office by 31.07.2026 if there is a legal obligation to do so (§ 149 Abs. 2 AO). If submitted by a tax advisor, the deadline is automatically extended to 28.02.2027. For a voluntary submission (assessment upon application according to § 46 Abs. 2 Nr. 8 EStG), there is more time: the deadline is 31.12.2029. 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 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% in 2025. Higher tax rates will therefore 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 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 may 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 Nr. 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 are 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 Abs. 1 Satz 3 Nr. 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 |
additionally 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 applications 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 electronically from 2025.
New brochure: Tax tips for people with disabilities
The Federal Ministry of Finance has published a new free brochure providing a concise overview of tax benefits for people with disabilities. It includes information on allowances, travel expenses, extraordinary burdens and other relief options. The brochure can be found in the article „New tax tips for people with disabilities“.
Household savings for residential care increased
From 2025, household savings for residential care will increase to 10.500 Euro per year. Read the article
Capital gains
Saver's allowance remains at 1.000 / 2.000 Euro
The saver's allowance will remain unchanged in 2025 at 1.000 Euro for single persons and 2.000 Euro for married couples (§ 20 Abs. 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. The deduction of actual income-related expenses is still not possible.
Advance flat rate for accumulating funds 2025
For accumulating funds, an annual fictitious advance flat rate is taxed – regardless of the actual profit (§ 18 InvStG). For 2025, the base interest 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.
Pensions
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 will remove 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 – either online or by post. This certificate makes it easier to declare 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 in need, a maximum amount of 12.096 Euro applies in 2025, reduced by the recipient's own income over 624 Euro per year (§ 33a Abs. 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 assets if it is received in the new year. More on the ruling and the asset limit
Support only deductible from 2025 if transferred
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 deductible. Read the article: Support for relatives – monetary payments only deductible if transferred
When are relatives considered in need?
Maintenance payments to relatives can only be deducted for tax purposes if they are considered in need in the tax sense. Income, assets and living situation play a decisive role Read the article: Deducting maintenance for tax purposes – when relatives are considered in need
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 the article
Amend tax assessment retrospectively 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 salary notifications). Taxpayers no longer have to apply for such changes themselves, but should regularly check their electronic data. Read the article
E-invoice: FAQ on the new VAT regulation from 2025
The e-invoice will be gradually introduced for companies in the B2B sector from 2025. 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 the article
Energy efficiency: BMF catalogue of energy measures
The new BMF catalogue on energy-efficient renovations regulates which measures are eligible for tax support – with many examples. Read the article
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 the article
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 the article
No tax deduction for victims of fraud
Those who fall victim to fraud cannot claim the lost amounts for tax purposes – not even as extraordinary expenses. This has been decided by the Federal Fiscal Court. Read the article
Tax return 2025: What's new
Which types of income and forms are supported by SteuerGo in 2025?
Programme scope according to § 87c AO
The income tax return can only be prepared with this software for persons with unlimited tax liability in Germany. If you are subject to limited tax liability in Germany (§ 1 para. 4 EStG), it is not possible to prepare your income tax return with this application.
The latest version for the tax year 2025 supports you in preparing the tax return in the following areas:
- Main tax form - Income tax return for (unlimited) taxable persons
- Form Special Expenses
- Form Extraordinary Expenses
- Form WA-ESt - Further information and applications in cases with foreign reference
- Form Child - Information on the tax consideration of children
- Form VOR - Pension expenses
- Form AV - Riester pension (pension contributions as special expenses according to § 10a EStG)
- Form N - Income from employment
- including travel expenses/expenses for work away from home
- Form N - Double household (New from 2023)
- Form N-AUS - Foreign income from employment
- Form R - Pensions and other benefits from pension contracts
- Form R-AUS - Pensions and other benefits from foreign insurance / foreign pension contracts / foreign occupational pension schemes
- Form R-AV/bAV - Benefits from domestic pension contracts and domestic occupational pensions
- Form V - Income from renting and leasing
- Form V-FeWo - Income from renting and leasing of holiday homes and short-term rentals
- Form KAP - Income from capital assets (initially interest and dividend income)
- Form KAP-BET - Income and creditable taxes from participations
- Form KAP-INV - Declaration of investment funds not subject to domestic tax deduction
- Form S - Income from self-employment
- Note: Income from partnerships according to § 15 EStG and from venture capital companies cannot currently be recorded.
- Form G - Income from business operations
- Note: Income from partnerships according to § 15b EStG (tax deferral models), income from sales to a REIT-AG and income from commercial animal breeding, futures transactions or participations cannot be recorded.
- Form Corona - Corona emergency aid, bridging aid and comparable subsidies
- Form EÜR - Income surplus calculation
- The income surplus calculation (according to § 4 para. 3 EStG) is the simplest form of profit determination
- Form SO - Other income
- Form SO Part 1: Here you can record maintenance payments received, recurring payments, benefits and parliamentary allowances.
- Form SO Part 2: Here you can declare income from private sales transactions (real estate, assets).
- Form AUS - Foreign income (New from 2023)
- Note: Flat-rate taxed foreign income, addition taxation according to §§ 7 to 13 AStG, family foundations according to § 15 AStG, crediting of foreign taxes on special remuneration according to § 50d para. 10 sentence 5 EStG cannot be recorded.
- Form Maintenance - Maintenance payments to persons in need (as part of extraordinary expenses)
- Form FW - Tax relief for the promotion of home ownership and deduction of preliminary costs (according to §10e EStG)
- Form Energy Measures - Expenses for energy measures in buildings used for own residential purposes
- Form Mobility Premium - Information on the application for mobility premium
We will keep you regularly updated on the latest updates in our newsletter and on Facebook and X.
The following forms to the income tax return are not available:
- Form N-GRE - Cross-border commuters in Baden-Württemberg (workplace in F, CH, A)
- Form L - Income from agriculture and forestry
- Form Forestry - Income from timber use subject to preferential tax rates (to Form L)
- Form WEIN - Non-accounting wine-growing businesses (to Form L)
Which types of income and forms are supported by SteuerGo in 2025?
Am I required to save my data?
No, you do not need to save the data you enter in the tax return at SteuerGo again.
As soon as you leave an input field, it is automatically saved in the background. Once you have completed a page, click the "Next" button at the bottom right of the page to proceed to the next step. You can, of course, change any entries you have already made later. Simply use the navigation to jump to the desired section.
Am I required to save my data?
By when do I need to submit my tax return?
Submission deadlines for the 2025 tax return
Self-prepared tax return:
The regular submission deadline is 31 July 2026. There is no automatic extension for 2024.
Prepared by a tax advisor or income tax assistance association:
In this case, the deadline is automatically extended to 28 February 2027.
Submission deadlines for the tax return
Early request by the tax office
The tax office may request an earlier submission in individual cases. In this case, be sure to meet the individually set deadline to avoid late fees.
Application for extension
If you cannot submit the return on time, apply for an extension before 31 July 2026. Approval is at the discretion of the tax office and should be well justified (e.g. illness, stay abroad, missing documents).
Consequences of missing the deadline
After the deadline, you will usually receive a reminder with a new submission date. If you still do not submit, fines and penalties may be imposed.
Deadline for voluntary submission
For a voluntary tax return (without obligation), the deadline is 31 December 2029. However, early submission can lead to a faster tax refund.
By when do I need to submit my tax return?
Who is required to submit a tax return?
In some cases, submitting a tax return is legally mandatory.
The obligation to submit mainly affects employees with additional income or special wage tax situations.
Typical cases in which you must submit a tax return:
- You received wage replacement benefits of more than 410 Euro in the year – for example, parental allowance, sickness benefit or unemployment benefit.
- You had multiple employers at the same time (tax class VI).
- You and your spouse chose the tax class combination III/V or IV with factor method.
- In addition to your salary, you earned additional income over 410 Euro – e.g. from rental, pension or self-employment.
- You were requested by the tax office to submit a return.
What is the deadline?
If you are obliged to submit and you complete your tax return yourself, the following deadline applies for the tax year 2025:
Submission deadline: 31 July 2026
Tip:
If you are unsure whether you need to submit a tax return, it is best to ask your local tax office.
Who is required to submit a tax return?
Who is not required to submit a tax return?
Submitting a tax return is voluntary if you are not legally obliged to do so.
This applies to many employees, especially if:
- You are in tax class I and have only income from your employment.
- You are married and have chosen the IV/IV tax class combination (without the so-called factor procedure).
In these cases, your income is usually already fully taxed. You do not have to submit a tax return and the tax office will not ask you to do so.
Why voluntary submission is still worthwhile
Even if you are not obliged: In 9 out of 10 cases, there is a refund! This is because too much tax is often withheld during the year, which you can reclaim by submitting a tax return.
This means: The state owes you money – not the other way around. A tax refund is very likely!
Assessment on request – the voluntary tax return
If you voluntarily submit a tax return, this is referred to in tax law as assessment on request. You have plenty of time for this:
For the tax year 2025: You can submit the return until 31 December 2029.
This way, you can still secure a possible refund years later.
Who is not required to submit a tax return?
Who is subject to unlimited tax liability?
Fully liable to tax under Section 1 of the Income Tax Act (EStG) are:
- individuals who have a residence or their usual place of abode in Germany, and
- German nationals abroad who are paid from public funds. This includes, for example, members of a German embassy abroad.
While the second point is clear, the first point needs to be examined more closely:
- Individuals are basically all people, regardless of age.
- A person has a "residence" where they live (Section 8 of the Fiscal Code (AO)). It does not matter whether the residence is a suburban villa or just a furnished room in a shared flat. A taxpayer can also have multiple residences, for example in Germany and abroad.
- The term "usual place of abode" is used when someone stays in Germany for at least six consecutive months (Section 9 AO). Short interruptions during this period are possible.
Who is subject to unlimited tax liability?
Who is subject to limited tax liability?
Limited income tax liability under Section 1 (4) EStG applies to individuals who
- do not have a residence or habitual abode in Germany,
- have certain domestic income as defined in Section 49 EStG, and
- are not subject to unlimited income tax liability on application according to Section 1 (3) EStG (cross-border commuters) or
- extended unlimited income tax liability according to Section 1 (2) EStG.
For them, the tax is collected through tax deduction or by means of an assessment for limited tax liability.
Note: Special regulations apply to cross-border commuters from France, Austria, and Switzerland.
Numerous personal and family-related tax benefits are not taken into account in the assessment for limited tax liability, including:
- Spouse splitting (joint assessment) cannot be claimed.
- Widow's splitting in the year following the bereavement is not granted (Section 32a (6) EStG).
- Extraordinary burdens cannot be claimed for tax purposes (Sections 33, 33a, 33b EStG).
- A disability allowance and care allowance are not available to you (Section 33b EStG).
- Child allowance and allowances for care, education, and training are not granted (Section 32 EStG).
- The relief amount for single parents is not available to you (Section 24b EStG).
- The tax reduction for domestic help, household-related services, and craftsmen's services in a flat in the EU/EEA abroad has not been granted since 2009 (Section 35a EStG).
- Business expenses are generally only deductible if proven and if they are directly economically related to domestic income.
- However, the flat rate for business expenses of 1.230 Euro for income from employment is also taken into account if no higher business expenses related to the income are proven.
- For pension income, at least the flat rate for business expenses of 102 Euro is taken into account.
Who is subject to limited tax liability?
Ehegattensplitting for registered civil partnerships
The Federal Constitutional Court has ruled:
Registered civil partnerships are also entitled to joint tax assessment with the splitting tariff. The unequal treatment of same-sex marriages and "normal" marriages in spouse splitting is unconstitutional (BVerfG ruling of 7.5.2013, 2 BvR 909/06).
The legislator was obliged to amend the legal situation retroactively from 1.8.2001 - the day the Civil Partnership Act came into force. A new general clause was added to the Income Tax Act:
"The provisions of this Act for spouses and marriages also apply to civil partners and civil partnerships" (§ 2 para. 8 EStG).
The new regulation applies to all still open tax cases in which income tax has not yet been definitively assessed (§ 52 para. 2a EStG).
Further equalisation will take place from 1.1.2015 with the "Act to Revise the Civil Partnership Law" of 15.12.2004. This law further expands the legal equality of same-sex civil partners with spouses.
Please select "Same-sex marriage/civil partnership" as your marital status in SteuerGo.
Order for same-sex married couples
For same-sex married couples and registered civil partners who wish to submit a joint tax return (=joint assessment), the tax authorities have specified who should be entered as the taxable person:
- Enter the partner first in the tax return whose surname comes first in alphabetical order.
- If the surnames are the same, the alphabetical order of the first names decides.
- If the first names are also identical, the older partner should be entered as the taxpayer.
Ehegattensplitting for registered civil partnerships
Who is entitled to the widow's pension splitting (grace splitting)?
After the death of a spouse, many face financial and tax challenges. The so-called widow's allowance (grace allowance) helps during this difficult time by allowing the tax splitting rate in the year following the death. But who is entitled to the widow's allowance and how exactly does this special tax regulation work?
Conditions for the widow's allowance (grace allowance)
Who is entitled to the widow's allowance is clearly regulated. For the tax authorities to recognise the grace allowance, the following conditions must be met:
- At the time of death, the conditions for joint assessment must have been met. This means: Both spouses had their residence in Germany and were not permanently separated.
- A separation before the death of the spouse excludes the widow's allowance – even if a joint assessment was made for the year of death.
Important: Even the actual separation of the spouses before the death means that there is no entitlement to the widow's allowance. Mere joint assessment in the year of death is not sufficient (BFH ruling of 27.2.1998, BStBl. 1998 II p. 350; H 184a EStR).
How does the widow's allowance work in practice?
After the death of the spouse, the surviving spouse is assessed individually in the following year – in accordance with § 25 EStG.
However: Once and for the last time, the splitting rate is applied in the year after the death – even though it is formally an individual assessment. This is regulated in § 32a para. 6 no. 1 EStG.
Those entitled to the widow's allowance benefit from the more favourable tax classes and a reduced tax rate – and are thus not immediately financially burdened after the loss.
Purpose and advantage of the widow's allowance
The purpose of the widow's allowance (grace allowance) is to reduce the tax burden of the surviving spouse in the first year after the partner's death. Without this regulation, the switch to individual assessment would immediately lead to higher taxes – an additional hardship in an already stressful situation.
With the widow's allowance, the surviving spouse initially remains in a more favourable tax position, leaving more financial leeway for reorientation.
Conclusion: Who benefits from the widow's allowance?
In summary: Those entitled to the widow's allowance must have been in a legally recognised marriage at the time of death, without permanent separation. In the first year after the death, the splitting rate is granted for the last time – an important tax concession in a difficult phase of life.
Tip: SteuerGo automatically takes the widow's allowance (grace allowance) into account once the conditions are met. It is still worth checking the details in the tax assessment notice carefully.
Who is entitled to the widow's pension splitting (grace splitting)?
