What is the wage tax certificate and what information does it contain?

At the end of the year, every employee in Germany should receive a wage tax certificate from their employer. This document enables verification of the annual income as well as the taxes and social security contributions paid. The form also contains various other details that are relevant for preparing the annual income tax return in Germany. What exactly is the wage tax certificate? What other information can be found in it? When is the wage tax certificate issued? The present article summarizes the most important information regarding the German wage tax certificate.

German Wage Tax Certificate – What Exactly Is It?

The wage tax certificate (LSB) is an official document issued by the employer that provides a summary of annual income, taxes withheld, and social security contributions. It is among the most important documents for the annual tax return and is essential for the settlement with the tax authority.

Every employer is obligated to issue this certificate once per year and to provide it to the employee. This applies solely to employees with an employment contract who are subject to social security contributions.

Other Important Documents to Consider

Alongside the wage tax certificate, numerous other documents are required for a complete tax declaration. A detailed overview of which documents are necessary for the tax return is provided by the comprehensive guide. It also explains which additional evidence can help increase a potential tax refund.

Important: The wage tax certificate is issued separately by each employer. This means that individuals employed by several employers during the year will receive a separate certificate from each employer.

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The wage tax certificate cannot be equated with a standard certificate from the employer. It serves as the basis for tracing the actual amount of tax and social security contributions withheld in Germany. It is generally advisable to verify the information immediately upon receipt—particularly in the event of a change of employer within the year, as certificates from all employers are required in such cases.

Wage Tax Certificate in Germany – By When Must It Be Issued?

It applies that without a wage tax certificate, it is not possible to submit a tax return to the German tax authority, and therefore no tax refund from Germany can be expected. The following explains further key aspects, in particular the issuance date of the wage tax certificate and the applicable deadlines.

Employers must comply with the statutory deadlines and have until the end of February of the following year at the latest to issue the wage tax certificate. However, it may happen that the certificate is only handed over at the beginning of March, for example when the deadline falls on a Sunday or a public holiday.

An example of this is the year 2021, when 28 February fell on a Sunday and thus the electronic transmission of the wage tax certificate was postponed to the next working day, namely 1 March.

Electronic Wage Tax Certificate 2026 – When Will It Be Provided?

When can the paper version of the electronic wage tax certificate for 2025 be expected? In this case, there are no changes due to public holidays, so the wage tax certificate should be available no later than 28 February. In some cases, it is issued earlier, occasionally even before the end of the year (usually in December).

Wage Tax Certificate in Germany – Explanation of the Field Numbering in the Document

Now to the core of the article, namely, the contents of the wage tax certificate. The certificate discloses the level of previous year’s income and the amount of wage tax actually withheld. However, it offers considerably more than merely an annual certificate.

The document contains far more than just a summary of earnings—it also provides information on social security contributions, tax class, and religious affiliation, among other things. The following explains the most important components of the wage tax certificate, which can be used to determine the actual tax situation of the employee.

• Column 1: Certificate period/duration of employment – these are details relating to employment in Germany. It should be noted that the number of workdays is relevant, among other things, for determining tax liability (tax rules for residents or non-residents).
• Column 3: Gross wage – the total taxable income for this year is shown here. This includes wages, bonuses, and other monetary benefits. Important: The German tax system distinguishes between three types of taxes: wage tax, solidarity surcharge, and church tax. Information regarding taxes withheld is provided in columns 4, 5, and 6 of the wage tax certificate.
• Column 4: Wage tax withheld – amount of advance tax payment on income tax.
• Column 5: Solidarity surcharge – paid solidarity surcharge.
• Column 6: Church tax – advance payment on church tax. If no information on religious affiliation is available, this tax is not levied; in such cases, field 6 remains blank.
• Column 16: Tax-exempt wage due to double taxation agreement – income from employment that, based on a double taxation agreement, is tax-exempt. This applies, for example, to employees who are posted abroad, such as Poland, by a German employer. In such cases, both German and foreign income earned in the relevant year must be substantiated.
• Column 17: Tax exemption for commutes between residence and first place of work – this field contains information on tax relief for commutes between place of residence and place of work.
• Column 20: Tax exemption for business travel (additional meal allowance) – this point applies to persons who undertook domestic business trips (within Germany) in the course of their employment. Here, details are provided on the fixed, lump-sum tax amount, which can have a significant impact on the potential tax refund.
• Column 21: This tax exemption applies to employees who maintain a secondary residence for professional reasons because their workplace is located elsewhere. This may apply both domestically and abroad, for example, when the main residence is in Poland and the place of work is in Germany. The prerequisite is that the center of vital interests remains at the main residence and the dual household is work-related. Certain professional sectors may have further specific deductions reflected in the wage tax certificate. Particularly in construction, roofing, scaffolding, as well as gardening and landscaping, the winter employment contribution is relevant. This is deducted from the gross wage and should be declared as work-related expenses in the tax return.
• Columns 22a and 23a: Employer and employee contributions to the statutory pension insurance – both fields contain pension insurance contributions from employer and employee. These contributions can be claimed in the annual tax return.
• Columns 25 and 26: Employee contributions to statutory health and social long-term care insurance – this field contains contributions to health and long-term care insurance. These expenses also affect the tax calculation and the potential tax refund.
• Column 28: Contributions to private health and compulsory long-term care insurance or to the statutory minimum flat amount for insurance – contributions to private health insurance and to statutory long-term care insurance.

Electronic Wage Tax Certificate in Germany – Additional Information Included

As previously mentioned, the income tax certificate is not a simple document. In addition to the information described above, this document also contains basic data such as:

• Date of birth,
• Tax class,
• Tax identification number,
• Address and telephone number of the employer,
• Granted family allowances.

How are data from the wage tax certificate entered into ELSTER?

For correct entry of the data into the ELSTER system, registration via the ELSTER certificate is required. Subsequently, in the Annex N form, the details from the German wage tax certificate must be transferred—particularly columns 1–28, which include, among other things, gross income, taxes withheld, as well as social security contributions. 

The next step involves taking into account the deduction amounts claimed, such as the commuter allowance (Entfernungspauschale) or costs associated with professional activity (advertising expenses). Finally, it is recommended to conduct a thorough review of all details—especially the total wage tax, as this largely determines the maximum possible tax refund (if applicable, minus church tax and solidarity surcharge).

What action should be taken if no income tax certificate is available or the document contains errors?

There are cases in which employers fail to fulfill their obligation and do not issue a wage tax certificate. Which measures are appropriate in such cases? If the wage tax certificate is unavailable or has been lost, the employer or the company’s human resources department responsible for the employment must first be contacted. It should also be noted that data from the wage tax certificate are also transmitted electronically by the employer directly to the tax office (via the ELStAM system), so the tax office has this information regardless of whether a paper document exists. 

This also applies to incorrect information. In such cases, the employer is to be informed by telephone and the errors should be noted on the wage tax card. These must be reported to the tax office.

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