Elster Surpasses Commercial Tax Software for the First Time

The trend of filing tax returns electronically continues to rise in Germany, with a significant 65% of taxpayers opting for digital submission methods. This marks a 7 percentage point increase from the previous year, where 58% chose electronic means. Meanwhile, only 20% of individuals resorted to traditional paper methods, a decrease from 25% in 2024. This data comes from a representative survey conducted by Bitkom involving 1,003 participants aged 16 and older.

In a notable shift, the Elster platform, which is managed by the tax authorities, has emerged as the most utilized option among taxpayers. According to the survey, 31% of respondents used Elster directly, up from 23% in 2024. This development places Elster ahead of commercial tax software programs, which were utilized by 27% of users. Meanwhile, mobile applications accounted for 7%, a slight decline from the previous year's 9%. Additionally, 15% of respondents sought assistance from professional tax advisors.

A significant portion of taxpayers, approximately 51%, expressed a desire for the tax office to pre-fill forms with existing data, requiring only approval from the taxpayer. This preference was especially pronounced among younger individuals aged 16 to 29, with nearly 62% supporting this idea. A pilot project aimed at exploring this initiative is currently underway at the Kassel tax office.

Moreover, there is a growing interest in the use of artificial intelligence for tax preparation, with 27% of respondents indicating they would consider allowing AI to handle their tax returns. This interest is even higher among younger participants, reaching 38% among the 16 to 29 age group. Additionally, 37% of those surveyed support the implementation of mandatory electronic tax filings for all taxpayers.

Despite the increasing digitization of the tax filing process, the majority still view tax returns as a burdensome obligation. Approximately 63% of respondents admitted to procrastinating on their tax filings until the last minute, while only 10% reported enjoying the process. The survey was conducted between August and September 2025, shortly after the deadline for submitting income tax returns for 2024.

According to Bitkom's managing director, this shift toward electronic tax filing reflects a successful digital transformation within the German administration, highlighting that the public is embracing these changes. The next step, he emphasizes, is to leverage digital technologies so that taxpayers can simply review and submit pre-prepared tax returns.