Efficiency Disparities Highlight Bureaucratic Challenges in German Tax System
New data reveals significant regional variations in the processing times for income tax returns across Germany, raising questions about bureaucratic efficiency and the potential for modernization within the national tax system. A recent analysis by the online tax portal Lohnsteuer-kompakt, reported by “Welt am Sonntag” indicates that Berlin’s tax offices are the fastest in the country, with citizens waiting an average of 46 days for their tax assessments last year. This contrasts sharply with Bremen, where the wait time averaged 74 days, reflecting a considerable disparity in processing capabilities. Hamburg and Saxony also experienced marginally longer wait times, one day exceeding Berlin’s average.
The study, based on the evaluation of approximately 400,000 tax returns submitted through the platform in 2025, highlights a national average of 50 days for processing, a slight decrease compared to the 51-day average in 2024 and a substantial improvement of seven days compared to 2023. The prior delays were largely attributed to the complex tasks associated with the COVID-19 pandemic and the anticipated property tax reform. While the backlog resulting from these factors appears to have subsided, the figures from 2021, with an average processing time of 49 days, suggest a pre-pandemic level of efficiency that is currently not universally replicated.
The Federal Ministry of Finance has largely corroborated the findings, projecting an average processing time of 51 calendar days for the entire country in 2025. Importantly, the Ministry has set a target of reducing the average processing time to 49 days for 2026, citing “optimized processes” and an increased “automation rate” as means to achieve this goal. However, critics argue these planned improvements are insufficient.
Florian Köbler, federal chairman of the German Tax Union, contends that the pace of improvement could be significantly accelerated. He advocates for a fundamental shift in approach, arguing that the ultimate goal should be to minimize the need for individual tax returns altogether, suggesting a broader move towards pre-filled assessments. Köbler places the onus on policymakers to drive this change, demanding substantial investment in digitalization and a simplification of the notoriously complex tax laws.
The taxpayer advocacy group, the Bund der Steuerzahler (Federal Association of Taxpayers), echoes this sentiment. Daniela Karbe-Geßler, Head of Tax Law and Tax Policy, calls for the implementation of a pre-filled tax return system, a standard practice in many other developed nations. She emphasizes the vast amount of citizen data already held by the tax administration, suggesting a more effective utilization of this information could drastically reduce processing times. The diverging processing speeds across Germany raise concerns about equitable service delivery and underscore the need for strategic, nationwide modernization efforts within the tax administration.
