The tax class (Steuerklasse) determines the amount of income tax withheld from your salary in Germany. Seven income tax classes are designed for specific personal and professional situations. This guide explains each class, who qualifies, and some circumstances for the proactive class change.

Tax class 1: For single employees

Tax Class 1 is the standard class for single, widowed, divorced, or permanently separated employees. This class applies to individuals without dependents or special tax considerations. The annual tax free income allowance in 2024 was €11.604.

Tax class 2: For single parents

Tax Class 2 is designated for single employees with a child or children who qualify for the Single Parent Relief Allowance. Applying for this class is required.

The annual basic allowance for Tax Class 2 includes the general basic allowance and an additional relief amount for single parents, which in 2023 stands at €4.260 plus €240 for each additional child.

Single parent relief

The relief was initially set at €1.908 annually in 2015 but increased to €4.008 in 2020 as part of economic relief measures. Starting with the second child, an additional €240 per child applies.

Tax class 3: Married with income disparity (paired with tax class 5)

Tax Class 3 suits married individuals where one partner earns significantly more than the other. The higher earner can apply for Tax Class 3 to benefit from reduced tax rates, while the other spouse is assigned Tax Class 5 automatically.

The annual basic allowance for married couples in this class is double the single allowance (€23.208). Note that this combination requires a joint tax declaration.

Tax class 4: Married couples with similar income

Tax Class 4 is the default class for newly married couples if both partners earn similar incomes, live in Germany, and are not separated. This class benefits couples who earn roughly the same amount, as income is taxed according to the marital splitting rule.

Tax class 4 with factor

The Tax Class 4 with Factor option allows couples to avoid tax underpayments. The tax office calculates an estimated annual tax burden, and income tax is withheld monthly. This class enables couples to benefit from marital splitting during the tax year and requires filing a joint tax return.

Tax class 5: Married with income disparity (paired with tax class 3)

In the 3/5 combination, one spouse in Tax Class 3 enjoys a higher allowance, while the lower-earning spouse falls under Tax Class 5, which has higher tax deductions. This combination can benefit couples with significant income differences despite higher deductions for the lower earner.

Basic Allowance: €0 and mandatory tax declaration required.

Tax class 6: For second jobs and side jobs

Tax Class 6 applies to employees who have multiple jobs. Since no allowances are provided, this class has the highest deductions. It applies to any secondary employment beyond the first job, while the main job remains in Tax Class 1.

Basic Allowance: €0 and mandatory tax declaration required.

Tip: Tax class change for higher parental allowance

Married couples expecting a child can strategically change their tax classes to increase their parental allowance (Elterngeld). Suppose both partners are in Tax Class 4. In that case, they can switch to a 3/5 combination, allowing the partner with fewer deductions to qualify for higher Elterngeld, calculated based on net income.

⚠️ Timing is critical. Parental allowance calculations consider the predominant tax class for the 12 months before childbirth, so the switch should be made at least seven months before the baby is due.

After the parental allowance period, couples can revert to their previous tax class combination, and any overpaid taxes by the other spouse can be reclaimed in the tax return. This strategy can also apply to unemployment benefits, which are based on net income.

How to change the tax class

Employees can change their tax class once a year. Married couples switching between the 4/4 and 3/5 combinations must complete the "Application for Change of Tax Class for Married Couples or Partners" form.

Single parents wishing to move from Tax Class 1 to Tax Class 2 can use the form "Declaration of Entitlement for the Single Parent Relief Allowance (Tax Class II)" available from the tax office.

Upon marriage, both partners are automatically assigned Tax Class 4. Under certain circumstances, more frequent tax class changes may be allowed, such as if the situation of a single parent changes or a spouse resumes work after a period of unemployment.

FAQ: Tax classes

How do I know which tax class I am in?

Your tax class is indicated on your payslip or your employer’s annual income tax certificate. Refer to this guide for a breakdown of the classes, or check with your HR department.

Who qualifies for which tax class?

Tax class designation depends mainly on marital status and dependents. Single parents can switch to Tax Class 2. Married couples can choose from three tax class combinations, and single, widowed, or divorced employees typically fall under Tax Class 1. Those with multiple jobs are assigned to Tax Class 6.

What is a tax class?

A tax class categorizes employees based on marital status and type of employment. It determines how much income tax is withheld, hence why they are sometimes called income tax classes.

When to choose tax class 3 and 5 vs. 4 and 4?

Married couples have three possible tax class combinations. The 3/5 combination is often beneficial when one spouse earns significantly more (over 60% of the combined income). In this case, the higher earner takes Tax Class 3, and the other chooses Tax Class 5. On the other hand, the 4/4 combination is recommended when both partners have similar incomes.

I am self-employed, do I need to care about tax classes?

No. Tax classes are used for net salary calculations by the employer. You tax class as self-employed won't change your total tax liability.