Before you start

Steuer-ID, issued automatically after Anmeldung
Understanding of your tax class
Records of foreign income and foreign accounts
An ELSTER account, if filing yourself

Step-by-step

1
Give your employer your Steuer-ID as soon as it arrives
Until they have it, payroll applies the least favourable class and a large amount comes off your pay — recoverable but painful in your first months.
Via employerWho: YouAs soon as issued
2
Understand your tax class
Steuerklasse determines monthly withholding: class 1 for single people, 3/5 or 4/4 combinations for married couples. Choosing 3/5 where incomes are uneven reduces monthly withholding, though the annual liability settles at filing either way.
OnlineWho: You
3
Check your church tax position
If you declared church membership at Anmeldung, 9% of your income tax is deducted automatically in NRW. Leaving formally requires an appointment and a fee, taking effect from the following month rather than retrospectively.
In personWho: You
4
File a return even if not required
A return frequently refunds — commuting costs, work equipment, relocation expenses, professional training and double-household costs are all deductible. The relocation year especially.
OnlineWho: YouBy 31 July following the tax year
5
Claim the commuting allowance if you use the Rheinschiene
The Entfernungspauschale allows a per-kilometre deduction for the distance between home and workplace, regardless of how you travel. If you live in Bonn or Düsseldorf and work in Cologne, this is a genuinely substantial annual deduction that many people never claim.
OnlineWho: You
6
Report foreign accounts and income
German tax residents are taxed on worldwide income subject to treaty relief, and foreign accounts must be declared. Germany participates in automatic information exchange.
OnlineWho: You

Documents you’ll need

Steuer-ID
Lohnsteuerbescheinigung — the annual employer certificate
Records of deductible expenses, including the move and the commute
Foreign income and account records
Certificate of tax residence from your home country, for treaty claims

Things most newcomers don’t know

The commuting allowance is worth real money on the Rheinschiene.

The Entfernungspauschale is a per-kilometre deduction for the distance between home and work, claimable regardless of how you travel — so it applies even if the Deutschlandticket already covers your train. Anyone living in Bonn or Düsseldorf and working in Cologne is accumulating a substantial annual deduction, and a great many people never file to claim it.

Source: Bundesministerium der Finanzen

Church tax is 9% in NRW and you opt in at registration.

Declaring church membership during the Anmeldung triggers automatic deduction of 9% of your income tax. It is decided in a short appointment most newcomers do not realise has a price, and leaving later requires a formal appointment and fee.

Source: Finanzverwaltung Nordrhein-Westfalen

Relocation costs are deductible and the moving-year return usually refunds.

Costs of a work-related move — transport, travel to view flats, double rent during transition, and a flat-rate incidentals allowance — are deductible. New arrivals frequently do not file in their first year and leave a refund unclaimed.

Source: Bundesministerium der Finanzen

Social security is deducted on top and it is substantial.

Pension, health, unemployment and long-term care contributions come off gross pay in addition to income tax, split with the employer. A German gross salary converts to net considerably less favourably than in low-social-charge countries — compare offers on net.

Source: Deutsche Rentenversicherung

Common mistakes to avoid

Not claiming the commuting allowance when you travel the Rheinschiene daily.
Declaring church membership at Anmeldung without realising it triggers 9% church tax.
Not filing a return in the relocation year and forfeiting a likely refund.
Comparing a German gross salary against a foreign one without accounting for social contributions.
Delaying giving your employer the Steuer-ID and losing cash flow to emergency withholding.

Some of this may be out of date. Spotted something inaccurate? Help us keep it right for the next newcomer.