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 is settled 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 Hamburg. Formally leaving the church is possible but 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
Many employees need not file, but a return frequently refunds — commuting costs, work equipment, relocation expenses, professional training and double-household costs are all deductible. The relocation year is especially likely to produce a refund.
OnlineWho: YouBy 31 July following the tax year
5
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
6
Get help for the first year
A Lohnsteuerhilfeverein handles salaried returns for a modest income-based fee and is used routinely by Germans. Anything with foreign income or self-employment needs a Steuerberater.
In personWho: You

Documents you’ll need

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

Things most newcomers don’t know

Church tax is 9% here, and you opt in at Anmeldung.

Declaring membership of a recognised church during a short registration appointment triggers automatic deduction of 9% of your income tax in Hamburg — a percentage point more than Bavaria. Most newcomers do not realise the question has a price attached, and leaving later requires a formal appointment and fee.

Source: Hamburg Finanzbehörde

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

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

Source: Bundesministerium der Finanzen

A Lohnsteuerhilfeverein is the cheap way to file.

Employee tax assistance associations prepare salaried returns for an annual membership fee scaled to income, far below a Steuerberater's rate. They cannot handle self-employment, but for a salaried newcomer with relocation expenses they are the obvious route.

Source: Bundesverband Lohnsteuerhilfevereine

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

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.
Assuming a 3/5 tax class choice changes the annual liability — it changes monthly cash flow only.

Some of this may be out of date.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