Taxes Between Germany and Poland: Tax Classes, Tax Refunds, and Double Taxation (2026)

Good news to start: Poland and Germany have one of the most favorable tax treaties for employees. German salary is exempt from tax in Poland (exemption with progression method – the MLI convention of this treaty has not changed, contrary to what some guides state), and if you have no Polish income, you do not file any declaration in Poland. On the German side, specific money is waiting for Poles to recover: tax class III with a spouse in Poland, family travel, double household – typical refunds amount to thousands of zlotys. This guide covers everything with the 2026 parameters verified in German legal texts – including a fresh change that most Polish sources miss: the mileage allowance is 0.38 euros from the first kilometer starting in 2026.

Basic Principle: You Pay Where You Work

• PL-DE Agreement of May 14, 2003: income from employment is taxed in the country where the work is performed – salary from Germany is subject to German tax.
• In Poland: exemption with progression. Official interpretation from podatki.gov.pl: foreign income is excluded from the tax base in Poland, only affecting the rate on Polish income. If you have only German income → you do not file a Polish declaration at all. PIT-36 with attachment ZG is only needed when you also have Polish income on the scale (or if you file jointly with your spouse).
• Myth-busting: the MLI convention did not cover the agreement with Germany (there is no MLI annotation in the official list of agreements with Germany) – the method has not changed to proportional deduction, as in the case of the UK or the Netherlands. The limit for the abatement relief does not matter here. General residency rules are described in the guide on tax residency and PIT for the Polish diaspora.

Tax Classes: III with a Spouse in Poland – Yes, It's Possible

The German income tax depends on the Steuerklasse (I–VI). A married person with a spouse living in Poland can – upon request – obtain class III (lowest prepayments) and joint assessment (Splitting): § 1a EStG treats a spouse from the EU as unlimitedly taxable. Practical conditions: at least 90% of the family's income is subject to German tax or income from outside Germany does not exceed double the exemption amount (2026: 2 × 12,348 = 24,696 euros); a certificate of the spouse's income on the “Bescheinigung EU/EWR” form with the stamp of the Polish tax office is required. Beware of the classic trap: the combination of classes III/V (and just III on this path) means mandatory submission of an annual Steuererklärung (§ 46 EStG).

Deductions That Poles Leave on the Table

German Parameters 2026 (from legal texts)

• Exemption Amount (Grundfreibetrag): 12,348 EUR; rate 42% from 69,879 EUR, 45% from 277,826 EUR; the Solidaritätszuschlag is paid only by ~10% of the highest earners (tax threshold 20,350 EUR tax/person).
• Minimum Wage: 13.90 EUR/h from January 1, 2026 (14.60 from 2027) – note, many Polish sites provide outdated 12.82 EUR.
• Minijob: up to 603 EUR per month in 2026 (limit increases with the minimum wage) – tax-free for the employee; details in the guide on minijob in Germany.
• Deadlines for Steuererklärung: for 2025 – by July 31, 2026; with an advisor or through Lohnsteuerhilfeverein – until the end of February 2027. A voluntary declaration (when you are not obligated) can be submitted up to 4 years back – and given Polish realities (commuting, family in PL) it is almost always worth it: commercial intermediaries report average refunds for Poles around 3400 PLN.
• How to Submit: ELSTER – free "online tax office" (registration for Steuer-ID). A cheap alternative for employees: Lohnsteuerhilfeverein – annual fee depends on income (from about 39 to 399 EUR in the largest association VLH), full service of the declaration and representation before the office; from June 2026, limits on secondary income for members have been lifted. Many advisors near the border and in Polish diaspora areas speak Polish.

Commuters: Living in Poland, Working Across the Oder

• Tax: in Germany (country of work) – the PL-DE agreement does not have a special cross-border clause. The most favorable path: apply for treatment as unlimitedly taxable (90% rule – a commuter with only German salary automatically meets it) → full deductions and Splitting. In Poland: exemption with progression, no declaration without Polish income.
• Health: normal employment in Germany = insurance in the German Krankenkasse (A1 is not needed – it is a delegation instrument). Take the S1 form from Krankenkasse and register it with NFZ: you can then receive treatment on both sides of the border, and your family is co-insured.

Returning to Poland?

The year of departure is settled in Germany normally (by July 31 of the following year). Regular savings and ETFs are not affected by the German "exit tax" (it only applies to shares of 1% in companies), and the transfer of money within the EU is unrestricted. On the Polish side, there is a return relief: exemption from PIT up to 85,528 PLN per year for those returning after at least 3 years abroad – it covers work, contracts, and business. The entire relocation is described in the guide on returning to Poland after years, and the coordination of pensions from both countries is covered in the guide on pension from Germany and ZUS.

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