German Tax Classes (Steuerklassen) Explained for Employees

Tax classes (Steuerklassen) determine how much income tax is deducted from your salary in Germany. Understanding which class applies to you can help you optimize your take-home pay and avoid overpaying taxes.

The Six Tax Classes

Class I (Klasse I): Single or Divorced

• Most common for single workers
• Standard tax allowances applied
• Largest tax deductions

Class II (Klasse II): Single Parents

• Higher allowances than Class I
• Requires proof of single parenthood
• Best rates for single parents

Class III (Klasse III): Married, Higher-Earning Spouse

• Lower tax deduction (more take-home pay)
• Paired with Class V for spouse
• Benefits the higher earner

Class IV (Klasse IV): Married, Both Earn Similarly

• Both spouses get standard deductions
• Most common for married couples
• Fair when incomes are equal

Class V (Klasse V): Married, Lower-Earning Spouse

• Higher tax deduction
• Paired with Class III
• Benefits the lower earner (tax on spouse)

Class VI (Klasse VI): Second Job

• No tax allowances
• Automatic for additional jobs
• Highest tax rate

How to Choose or Change

Automatic classification:

• Based on marital status and employment
• Changed automatically at employer

Manual change:

• Request at local tax office (Finanzamt)
• Required for: marriage, divorce, birth of child
• Can also request change anytime

Impact on Net Salary

Example (annual income €50,000):

• Class I: ~€3,000 tax/year
• Class III: ~€2,200 tax/year (higher earner)
• Class V: ~€3,800 tax/year (lower earner)

Actual amounts depend on other factors

When to Request a Change

• After marriage or divorce
• Birth or adoption of children
• One spouse significantly earns more
• Spouse becomes unemployed

Year-End Tax Return

• Tax class doesn’t determine final tax
• Employer withholds based on class
• File tax return (Steuererklärung) to settle differences
• Many people receive refunds after filing

Useful Resources

• Bundesfinanzministerium
• Local Finanzamt finder