Tax Class (Steuerklasse)
Germany's 6 tax classes determine how much income tax is deducted from your payslip each month. Choosing the right one for your situation can save hundreds of euros monthly.
See how much each class saves you
Use our Salary & Tax Calculator to compare your net income across different Steuerklassen.
The 6 Tax Classes at a Glance
| Class | Who it applies to | Deductions | Ideal for |
|---|---|---|---|
| Class I👤 | Single (default) | Basic allowance only | Unmarried employees, single earners |
| Class II👤👧 | Single parent | Basic + Entlastungsbetrag (single parent relief) | Single parents with at least one child living with them |
| Class III💰 | Married, higher earner | Double basic allowance (€24,696) | Higher earner in a couple. Partner must be in Class V. |
| Class IV⚖️ | Married, similar income | Standard allowance (same as Class I) | Both partners earn similar salaries (within ~20%) |
| Class IV+Faktor🔢 | Married, proportional | Proportional to income split | Avoids large annual tax payments; recommended over III/V |
| Class V🔻 | Married, lower earner | Minimum deductions | Lower earner whose partner is in Class III |
| Class VI💼 | Second job | No basic allowance at all | Applied to any secondary job (Nebenjob) |
Note: The monthly deduction is not your final tax, it is an estimate. The Finanzamt settles the exact amount at year-end via your tax return.
Which Tax Class Are You?
Follow the questions to find your Steuerklasse for your current situation.
→ Apply for Class II
(+€4,260/year tax relief)
★ IV+Faktor gives each partner proportional deductions with no year-end surprise bill, the safest choice for dual-income couples.
Default after marriage
Both spouses are moved to Steuerklasse IV by the Finanzamt automatically, based on your Anmeldung marital status. You do not need to do anything, but you can change if the combination does not suit your situation.
III/V combination
The higher earner takes Class III (double basic allowance = lower monthly tax deduction = more take-home pay). The lower earner goes to Class V (very high monthly tax deduction). At year-end you file a joint return (Ehegattenveranlagung) and settle any difference. Best when income split is at least 60/40 or more extreme.
IV/IV — when income is similar
Best when both partners earn similar salaries (within ~20% of each other). Monthly deductions are balanced and the year-end settlement is usually small.
IV+Faktor, the smart choice
Also called Faktorverfahren. The Finanzamt calculates a personalised multiplier so your monthly deductions are proportional to your actual income split. No large year-end bill. Recommended for couples who want to avoid the III/V underpayment problem.
How soon to change
You can apply as soon as you are registered as married. The change applies from the month the Finanzamt processes it (usually 2–4 weeks). Retroactive changes within the same tax year are possible.
Kinderfreibetrag 2026
€9,756 per year per child (€4,878 per parent). Applied automatically at year-end tax assessment — you do not need to do anything if you receive Kindergeld. The Finanzamt checks which is more beneficial (Kindergeld or Kinderfreibetrag) and applies the better one.
Kindergeld amount
€259 per month per child (as of January 2026). Apply to the Familienkasse (Family Benefits Office) at the Bundesagentur für Arbeit. Apply as soon as the child is born, Kindergeld is not backdated beyond 6 months.
Class change for single parent
If you are unmarried or divorced and your child lives with you, you may qualify for Steuerklasse II (single parent class) which gives you additional relief (Entlastungsbetrag für Alleinerziehende = €4,260/year). Apply at the Finanzamt with birth certificate.
Parental leave (Elterngeld)
Elterngeld is 65% of your net salary for up to 14 months (when both parents take leave). It is tax-free but counted as income in the Progressionsvorbehalt, which can push up your marginal tax rate. File a tax return in your Elterngeld year — you may owe tax.
Indian parents tip
Register the child at the Standesamt (registry office) immediately after birth. This triggers the Kindergeld eligibility and registration with the Meldebehörde. Bring both parents' passports and the Geburtsurkunde (birth certificate from the hospital).
The problem with III/V when incomes equalise
If your spouse is in Class V and earns similar to you, they lose a large portion of each payslip to tax. The year-end refund comes back — but it is a monthly cash-flow problem. Switch to IV/IV or IV+Faktor as soon as incomes are similar.
When to switch
Apply to change by 30 November of the current year for the change to apply to the following year. Alternatively, you can apply for an immediate change during the year with Finanzamt approval.
Recommended combination
IV+Faktor (Faktorverfahren) is the most accurate option, your monthly deductions match your actual income contribution and there are no year-end surprises.
If spouse earns much less
III/V still makes sense — the higher earner benefits from Class III's lower deductions month-to-month. Just be prepared to pay extra at year-end tax filing (mandatory for III/V couples).
If spouse stops working entirely
The working spouse switches to Class III (the working partner keeps Class III; non-working partner gets Class V, which applies only to income, and with €0 income, deducts €0 tax). Or the working spouse moves to Class I if they prefer no joint assessment.
Elterngeld period
During Elterngeld leave, the non-working spouse is effectively earning €0 from employment. Their Steuerklasse does not directly affect Elterngeld amount, but changing to III/V helps the working spouse retain more monthly income.
Impact on Elterngeld
Elterngeld is calculated from your last 12 months' net income before leave. Changing to a more favourable class before taking leave increases your net salary reference point — and therefore your Elterngeld. Change at least 7 months before leave starts to benefit from a full 12-month higher-income period.
Via ELSTER (online)
Log in to elster.de → "Formulare & Leistungen" → "Antrag auf Steuerklassenwechsel". This requires a prior ELSTER account with a digital certificate. Recommended for ongoing use, also needed for annual tax returns.
Paper form (Antrag auf Steuerklassenwechsel)
Download the form from your Finanzamt website or pick it up in person. Both spouses sign. Submit to your local Finanzamt by post or in-person. Both spouses must apply together — one partner alone cannot change the combination.
What the Finanzamt sends back
They update the ELStAM database (electronic payroll tax deduction characteristics). Your employer is notified electronically, you do not need to tell your employer separately. The new class appears on your next payslip.
Deadline for changes within the year
Changes submitted by 30 November apply from 1 December of that year. Changes after 30 November apply from 1 January of the following year. For retroactive changes in the same year, apply at the Finanzamt.
For Class II (single parent)
Apply at the Finanzamt with your child's birth certificate and confirmation that the child lives primarily with you. The Entlastungsbetrag is automatically considered in your deductions.
Key Rules to Remember
Once per year
Each spouse can request a class change once per calendar year. Exception: if there is a major life event (marriage, birth, separation), additional changes are possible.
III/V → mandatory return
If you use III/V, you must file a tax return every year. There is no opt-out. The Finanzamt will contact you if you do not file.
Class does not change your total tax
Your annual tax liability is the same regardless of class. The class only changes how much is deducted monthly. The year-end return settles the difference.
ELStAM, automatic notification
When the Finanzamt updates your class, your employer is notified automatically via the ELStAM system. You never need to tell your employer about class changes.