Kassel's tax office carries out tax filings independently
In the heart of Hesse, the city of Kassel is spearheading a pioneering initiative in tax administration. As of August 2025, the local tax office is proposing automated tax assessments to a select group of citizens for the 2024 income tax year [1].
This marks the first program of its kind in Germany, where the tax office proactively calculates and communicates tax liabilities to taxpayers, eliminating the need for them to file declarations [2]. The aim is to simplify tax administration and reduce the burden on taxpayers.
The project has garnered attention, with initial reactions suggesting positive interest [3]. However, more specific feedback from taxpayers and tax associations is yet to be reported. Traditionally, such automated declaration systems receive mixed reactions: taxpayers appreciate the convenience, yet concerns about data privacy and accuracy may arise, and tax associations may call for careful implementation and safeguards [4].
The pilot project in Kassel is not limited to just simplifying the process. It also aims to relieve citizens and make administration more efficient [6]. In fact, if the test run for the 2024 income tax is successful, the state plans to expand the program [7].
The chairman of the Hessian Taxpayers' Association, Joachim Papendick, has voiced his support for the project, demanding more digitization and simplification of the tax declaration process [8]. Similarly, the federal chairman of the German Tax Union, Florian Köbler, highlights the potential for tax administrators to focus on complex cases in a fully digitalized environment [9].
Citizens participating in the pilot project receive a proposal for setting their income tax. They only need to check the proposal and agree for the tax office to issue an income tax assessment [5]. However, if someone is not satisfied with the proposed income tax assessment, further steps or actions may be required [10]. After a four-week deadline, the tax office will issue an income tax assessment without further action from citizens [11].
Additionally, citizens can claim additional expenses within the deadline using the Elster software without submitting a separate tax declaration [12]. The number of tax audits in companies has dropped due to the state waiving billions [13].
As the pilot project continues, it will be interesting to see how it evolves and whether it sets a precedent for other cities and regions in Germany. The potential for streamlining the process by automating the creation of simple tax returns could significantly reduce the burden on taxpayers and offer a more efficient tax administration system.
- The automatic income tax assessment program in Kassel, Germany, not only streamlines the tax process but also enables vocational training for its participants, providing an opportunity for them to familiarize themselves with the latest technology in finance and business.
- As the digitalization and simplification of the tax declaration process gathers momentum, finance experts envision a future where vocational training programs could become integrated components of community policy, fostering an educated workforce equipped to handle the complexities of modern business and technology.
