What happens if you miss the tax deadline?
The tax office levies a fine if you miss the deadline to file the tax return. However, the penalty only applies to you if you are required to file the tax return.
If you don’t file the voluntary tax return on time (i.e., within four years), you don’t pay any fine. However, you lose your chance of filing the tax return for that tax year.
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Here are the different penalties the tax office may impose based on the level of escalation and delay.
- Late fee (if you miss the regular deadline)
- Penalty in addition to the late fee (if you miss the new deadline set by the tax office)
- The tax office estimates your taxable income (last step)
1) Late fee (Verspätungszuschlag)
Firstly, the tax office sends a letter warning you to file the tax return and the new deadline.
In this first step, the tax office MAY levy a penalty if you submit your tax return after the regular deadline but within 14 months of the tax year. However, the tax office MUST levy a penalty if you file the tax return 14 months after the tax year.
For the tax year 2025, the tax office MAY charge a late fee if you miss the regular deadline of 31 July 2026. However, the tax office MUST charge the late fee if you file after 28 February 2027 (14 months after tax year 2025).
The late fee is 0.25% of your tax debt, but at least 25€. You must pay this fee for each month of delay in tax filing.
Example: Suppose you delayed filing the tax return by 4 months. In this case, you pay at least 100€ (25€ * 4 months) in late fees on top of any tax payments.
NOTE: The late fee applies regardless of if you have to make a tax payment or you’ll receive a tax refund. So, always file the tax return within the deadline.
2) Penalty (Zwangsgeld)
If you miss the new deadline set by the tax office in their first letter, you may have to pay a penalty (Zwangsgeld) and the late fee (Verspätungszuschlag).
The penalty amount depends on the following factors:
- Your financial situation
- How cooperative you have been with the tax authorities so far
- Whether you’ve submitted your tax return late on several occasions.
If you’ve failed to file a tax return for the first time, the penalty is usually between 100€ and 500€. However, the tax office may charge you up to 25,000€.
3) The tax office estimates your taxable income
You still haven’t filed the tax return after receiving a penalty notification from the tax office. In this case, the tax office estimates your taxable income.
You have one month after receiving the estimate to file an objection. After that, it becomes final.
Furthermore, the tax office charges interest of 1.8% on the tax due. The interest period begins 15 months after the end of the calendar year in which the tax was incurred.
Example: For tax year 2025, the interest period begins on 1 April 2027, 15 months after the end of 2025.
Fun fact: Suppose filing a tax return is not mandatory for you. So, you decided to file the tax return voluntarily and expect a tax refund. In this case, you can file the tax return late to have the tax office pay interest on your refund.
What can you do if you missed the tax filing deadline?
Don't worry if you missed the 31 July deadline. Just file your taxes now.
You have three options.
- File it yourself using tax software. (Cheapest option) - Check24, SteuerGo*, and WISO Steuer* (German). In this case, you may pay a fine, but it won't be much.
- Get Lohsteuerhilfeverein membership and let a tax advisor file your tax return (the most affordable way to hire a tax advisor). In this case, you pay no fine. We have collaborated with a tax advisor of a Lohnsteuerhilfeverein. You can request a quote here.
- Hire a business tax advisor to file the tax return (most expensive). In this case, you pay no fine.
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