Financial Offices Prepare Tax Returns Automatically – Strong Support for Pilot Project in Central Germany
Date: January 12, 2026, 17:30
In a pioneering development aimed at easing the annual tax declaration process, a pilot project in the German state of Hessen is testing a system where the financial office (Finanzamt) prepares tax returns on behalf of citizens. This initiative has garnered widespread approval from policymakers in Central Germany, particularly in the states of Thuringia, Saxony, and Saxony-Anhalt. The project promises to relieve taxpayers from the burden of manually filling out often complicated paperwork and aims to modernize interactions between citizens and tax authorities.
The Hessen Pilot Project: How It Works
Since August 2025, the Finanzamt in Kassel, Hessen, has been implementing a model where it compiles income tax assessments for a select group of taxpayers using data already available to the authorities. Under this approach, taxpayers receive a proposed tax return from the finance office, which they only need to review and approve. If a taxpayer agrees without contest, the tax office formally issues the tax assessment after a four-week review period. However, individuals retain the option to submit additional expenses or documents within this period if they wish.
Enthusiastic Response from Central German States
The concept, referred to by tax officials as "Amtsveranlagung" (official assessment), is being closely watched and well received in Central Germany.
-
Thuringia: The Thuringian Ministry of Finance has expressed strong interest and favors introducing the automated tax filing system during 2026, contingent on establishing the necessary technical and organizational frameworks. It recognizes the potential for this approach in areas such as pension and wage tax assessments. However, the ministry emphasizes the importance of nationwide coordination between federal and state governments to enable a fully digital, streamlined process. Integration through the Elster platform—a federal tax portal—is envisioned, where the tax return is automatically created, authorized, and submitted digitally with minimal effort from the taxpayer. Tax notices would be sent digitally as well.
-
Saxony: The Saxon Ministry of Finance has also conveyed support for simplifying the taxation process and follows the Hessen pilot with keen interest. While reviewing the project’s applicability within Saxony, the ministry underscores the necessity to carefully evaluate technical, organizational, and legal requirements before any rollout.
-
Saxony-Anhalt: The governing coalition comprising CDU, SPD, and FDP regards automated personal income tax assessments as a significant step toward a modern, efficient, and citizen-friendly tax administration. Policymakers here advocate for a uniform national implementation to ensure consistency and usability across all regions.
Potential Benefits and Considerations
Maik Kowalleck, a CDU budget policy expert in Thuringia, highlighted the practical advantages of this innovation: "If the state already holds the necessary data, it should utilize it to benefit citizens. Such a procedure would relieve people of a real burden and simultaneously improve administrative efficiency."
Currently, about 80 percent of taxpayers in Thuringia already submit their tax returns digitally via the Elster portal or other online services, signaling a readiness for more advanced digital solutions.
From the perspective of tax administration personnel, the German Tax Union (Deutsche Steuer-Gewerkschaft), which represents civil servants in the finance sector, has voiced approval of Hessen’s pilot project. The union’s federal chairman, Florian Köbler, noted that automating routine cases would free up staff to focus on complex and critical cases, improving overall service quality.
Outlook: Steps Toward a Digital Tax Future
While the pilot offers promising prospects, authorities acknowledge several challenges remain. These include aligning federal and state digital infrastructures, legal frameworks, and ensuring data privacy and security. In addition, gauging how many taxpayers will opt for this automated process in practice is still uncertain.
Nonetheless, the momentum in Central Germany indicates a shared commitment to reducing bureaucratic hurdles and leveraging technology to simplify tax compliance. If successful, this model may soon mark the end of manual form-filling for many taxpayers in Germany.
Additional Resources:
-
For an expert guide on filing tax returns independently, including tips and deadlines, see the ARD Mittagsmagazin video with finance expert Hermann-Josef Tenhagen: Link to video
-
Listen to the Deutsche Steuer-Gewerkschaft discussion on possibly abolishing tax returns for employees and pensioners, with insights from chairman Florian Köbler: Audio link
Reported by MDR AKTUELL with contributions from dpa.