German Tax Classes
(Steuerklassen) Explained
Every employee in Germany is assigned a Steuerklasse that determines how much income tax is deducted each month. There are 6 classes — which one you get depends on your marital status, children, and whether you have multiple jobs.
Calculate your net salaryAll 6 German tax classes
Your Steuerklasse affects monthly withholding only — not your total annual tax. Everything is reconciled at year-end through your Steuererklärung.
Class I
Steuerklasse I
Who this applies to
Single, divorced, widowed (after 1 year), or permanently separated
The default class for most single employees. Standard deductions apply. If you just moved to Germany for work, this is almost certainly your class.
Class II
Steuerklasse II
Who this applies to
Single parents who live with and support at least one child
Must be applied for — not assigned automatically. Includes a €4,260 relief allowance (Entlastungsbetrag) on top of the standard Grundfreibetrag. Noticeably reduces monthly tax for single parents.
Class III
Steuerklasse III
Who this applies to
Married or registered partner — the higher-earning spouse
Significantly lower monthly tax. Always paired with Class V for the lower-earning spouse. Best when one partner earns substantially more. The III/V combo benefits the household overall.
Class IV
Steuerklasse IV
Who this applies to
Married or registered partner — both spouses with similar incomes
The default for married couples. Each spouse is treated like a single earner. Fairest option when both partners earn roughly the same. Avoids the III/V reconciliation headache at year-end.
Class V
Steuerklasse V
Who this applies to
Married or registered partner — the lower-earning spouse (whose partner is in Class III)
Higher deductions than Class I. The household benefits from the III/V pair, but the Class V spouse takes home less than they would in Class I. Always file a joint tax return to reconcile at year-end.
Class VI
Steuerklasse VI
Who this applies to
Anyone with a second or additional job
Highest deductions of all classes. No Grundfreibetrag. Applied automatically to any income beyond your primary employment. Deductions are steep — many people find it barely worth having a second job below a certain salary.
Net salary by tax class
Approximate net take-home pay on a €4,000 gross salary (single, no church tax, NRW). Use the salary calculator for your exact figures.
* Percentages are approximate (net ÷ gross). Church tax, health insurance contributions, and state (Bundesland) affect the exact amount.
Try the salary calculator with your tax classNew to Germany?
What to expect when you start your first job
Your employer assigns Class I by default if you are single. Married couples should notify the Finanzamt to switch to III/IV or III/V — the default is IV/IV for both spouses.
Your Steuerklasse is linked to your Steuer-ID (tax identification number) and accessed electronically via the ELStAM system. You no longer need a paper Lohnsteuerkarte.
Frequently asked questions
- How do I know which tax class I am in?
- Your tax class is shown on your payslip (Gehaltsabrechnung) and your annual income tax assessment (Steuerbescheid). When you start a new job, your class is assigned via the ELStAM system based on your Steuer-ID. Class I is the default for unmarried new arrivals.
- Can I change my tax class?
- Married couples can switch between III/V and IV/IV once per calendar year by submitting an Antrag auf Steuerklassenwechsel to their Finanzamt. Single employees in Class I generally cannot switch unless their circumstances change (e.g. becoming a single parent → Class II).
- Is Class III always better than Class IV for married couples?
- Class III gives lower monthly deductions for the higher earner, but the total household tax is the same at year-end. With III/V, the lower-earning spouse (Class V) overpays monthly and must file a joint return to reconcile. Class III/V works best when there is a large income gap between spouses.
- What happens at the annual tax return?
- Your class determines monthly withholding, not your final tax liability. At the Steuererklärung, Germany recalculates what you owe. Class I/IV filers typically get a refund. Class III/V couples may owe extra if the Class V spouse underpaid. The annual return evens everything out.
- Does my tax class affect unemployment benefit (Arbeitslosengeld)?
- Yes, significantly. Arbeitslosengeld I is based on your net salary in the 12 months before unemployment. Class III (higher net) means higher benefit. Some couples switch intentionally before a planned job loss — but the Agentur für Arbeit can investigate this and has strict rules.
See exactly what you take home
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