Bank account, salary and taxes

For the payment of your salary you need a German bank account. A current account / checking account and a German EC card with which you can withdraw cash at ATMs are suitable. An overview of the financial institutions in the city of Hannover can be found on the Hannover city website. In addition to banks with branches, there are also online-only banks. To open a bank account, you usually need a passport or ID card and confirmation of your place of residence. It is often necessary to book an appointment to open an account in advance. Some banks also require a residence permit from the Foreigners’ Registration Office and/or also your German tax identification number (Steuer-ID). You can find more about taxes further down on this page.

You will receive a monthly payroll. You can view a sample MHH payroll on the MHH intranet.

Taxes and tax returns in Germany are not always easy to understand. Therefore, we have compiled a brief overview of the most important information for you. More detailed information and individual advice can be found on the website of Vereinigte Lohnsteuerhilfe. You find the link below this section.

Your tax identification number (Tax ID, Steueridentifikationsnummer) only applies to income tax and is required, for example, when you take up employment, for notifications to tax authorities, for certain applications and for your tax return. You will receive your tax ID (Tax Identification Number or TIN) by mail from the Bundeszentralamt für Steuern (Federal Central Tax Office) after registering with the Bürgeramt.

Income tax is automatically deducted from your gross salary each month. The tax rate depends on the amount of the salary and your tax bracket which depends mainly on your marital status. If both spouses in a household have taxable income, certain combinations of tax brackets may be appropriate. Every year, an income tax return (“Lohnsteuerjahresausgleich”) can be submitted to the tax office, this can also be done online, for example via Elster (only available in German). In this process, all income from the previous year is offset against the taxes paid to date. There are also so-called “allowances” and many other ways to “deduct” expenses from taxes. In some cases, you get money back from the tax office. As long as you have no other income (e.g. also interest and rental income) than your “normal” salary, the tax return is voluntary.

Church tax is paid by members of the Catholic and Protestant churches, and Jewish community members pay cultural tax. This is deducted directly from the salary via the employer in the same way as income tax. No tax is levied for all other religious communities.