German tax classes (Steuerklassen): what they are and which to pick

Steuerklassen I-VI: which class you get, why married couples choose III/V or IV/IV with factor, how to change class and what it does to net salary.

Last updated: July 13, 2026

What are the German tax classes?

Germany sorts employees into six tax classes that set monthly payroll withholding: I (single), II (single parent), III/V (married, unequal incomes), IV/IV (married, similar incomes, optional factor), and VI (second job). Classes change only your monthly withholding, not your final yearly tax - the tax return settles the true amount.

What this guide covers

The one thing to internalize The six classes Expat-specific notes III/V vs IV/IV in one example

The one thing to internalize

Steuerklasse is a cash-flow dial, not a tax discount. III/V couples keep more net during the year but often owe at filing; IV/IV-with-factor tracks reality closest. Your true tax is fixed by income and the return.

The six classes

Class	Who	Effect
I	Single, divorced, widowed	Standard withholding
II	Single parents	Extra relief (Entlastungsbetrag)
III	Married, higher earner (partner takes V)	Much lower withholding
IV	Married, both default	Like I but for married
IV + Faktor	Married, precise option	Withholding matches expected true split
V	Married, lower earner (partner has III)	Heavy withholding
VI	2nd+ job	Highest withholding, no allowances

⚠️ VERIFY at build: the legislated III/V abolition (planned migration to IV+factor around 2030) - state current status.

Expat-specific notes

You are auto-assigned I on registration; married couples get IV/IV once the marriage is registered locally (foreign certificates may need apostille/translation).
Spouse still abroad? You typically stay I until the spouse is registered in Germany/EU rules apply - this changes net pay materially; plan for it.
Change class online via ELSTER or at the Finanzamt; multiple changes per year are now allowed ⚠️ VERIFY current rule.
Class VI on a second job is normal and refunds at filing - don't panic at the first payslip.

III/V vs IV/IV in one example

Couple, €75k + €30k: III/V front-loads maybe €150-250/month extra net to the household but commonly triggers a back-payment; IV+factor lands near zero at filing. Rule: need monthly cash → III/V knowingly; hate surprises → IV+factor. Both file returns (III/V makes it mandatory).

Frequently asked questions

Does tax class change my actual tax burden?

No - only timing. The return equalizes everyone.

We're both expats, married abroad. Which class?

After both are registered here with the marriage recognized: IV/IV automatic, III/V or factor on request.

Which class as a single parent?

II, but only on request with a qualifying child in your household - many miss it.

New job asks my tax class?

It's pulled digitally (ELStAM) via your tax ID; you don't hand anything over.

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