German Tax Class — What It Is, How to Choose, How to Change. For expats in Germany — married couples, family reunification, 2026 edition.
Every employee in Germany is assigned one of six tax classes. Your Steuerklasse determines your monthly net take-home pay — wrong class means overpaying every month.
| Class | Who it applies to | Key feature |
|---|---|---|
| Class I | Single, separated, widowed, divorced | Default class. Also for non-resident spouses living abroad. |
| Class II | Single parent (Alleinerziehend) with child | Extra tax relief of EUR 4,260/yr (2026). Must receive Kindergeld. |
| Class III | Higher-earning spouse | Lowest deduction rate. Best when income split is 60/40+. |
| Class IV | Both spouses earn similarly | Each taxed as if single. Can add Faktor method for precision. |
| Class V | Lower-earning spouse (paired with III) | Highest deduction rate. Annual return mandatory. |
| Class VI | Second job / additional income | No tax-free allowance. Highest withholding. Cannot be avoided. |
Key fact: Steuerklasse only affects your monthly withholding — not your total annual tax owed. The final tax is settled in the annual Steuererklärung. But choosing the right class means more money in your pocket each month.
| Your situation | Optimal class | Why |
|---|---|---|
| Single, no children | Class I | Default. No choices to make. |
| Single parent, child in household | Class II | Apply for Alleinerziehend. Extra EUR 4,260 relief/yr. |
| Married, you earn 60%+, spouse earns 40% or less | Class III / V | Maximises your monthly net pay. |
| Married, both earn similar amounts | Class IV / IV | Equal treatment. No mandatory annual return. |
| Married, both earn similar, want precision | Class IV + Faktor | Most accurate monthly withholding. |
| Second job | Class VI | Mandatory for 2nd contract. No choices available. |
| Non-EU spouse living abroad | Class I | Until spouse arrives and registers in Germany. |
This single choice affects your monthly take-home pay every month. Get it right.
Class III / V
Very low monthly withholding for higher earner. Higher net pay each month. Annual return MANDATORY. Best when salary ratio is 60/40+.
Class IV / IV
Each taxed as if single. Balanced monthly pay. No mandatory return (usually). Can add Faktor for precision. Best when salaries are similar.
Real example: Salary EUR 4,500 (Partner A) + EUR 2,500 (Partner B)
| Scenario | Partner A net/mo | Partner B net/mo | Combined |
|---|---|---|---|
| Both Class IV/IV | ~EUR 2,985 | ~EUR 1,778 | ~EUR 4,763 |
| Class III (A) + Class V (B) | ~EUR 3,380 | ~EUR 1,520 | ~EUR 4,900 |
| Class IV + Faktor (both) | ~EUR 2,990 | ~EUR 1,790 | ~EUR 4,780 |
Class III/V gives the higher earner significantly more take-home pay each month. The total annual tax bill is the same either way — the difference is only in monthly timing. Choose III/V for maximum monthly cash flow. Choose IV/IV for balanced monthly pay and no mandatory return.
Only married or registered life partners can choose their class. Single people are automatically in Class I or II.
Available at finanzamt.de or your local Finanzamt. Free. Both spouses must sign it.
Name, address, Steuer-ID, employer, desired class. Your Steuer-ID is on any previous tax correspondence.
In person, by post, or via ELSTER (online at elster.de). ELSTER is the fastest — confirmation same day.
Submit in March → new class applies from April payroll. Your employer is notified electronically via ELStAM. Nothing extra for you to do.
Important: You can only change Steuerklasse once per calendar year since 2020 — except in case of death, divorce, separation, or one spouse becoming unemployed.
Married abroad? Foreign marriage certificates must be apostilled in the country of issue AND officially translated by a sworn German translator (beeidigter Übersetzer) before the Finanzamt will accept them. Allow 2–4 weeks.
Every month you delay = money lost. For a couple earning EUR 4,500 + EUR 0 (non-working spouse), switching to Class III saves approximately EUR 350–450/month in withholding. Over a year: EUR 4,200–5,400.
As soon as your spouse arrives, register at the Einwohnermeldeamt within 14 days of moving in. This is the trigger for Steuerklasse eligibility.
Do not wait. Submit the same week. The sooner you submit, the sooner your monthly net pay increases.
EUR 255/month per child (2026). Apply at the Familienkasse as soon as children are registered. Not income-dependent.
EUR 6,612 per child per year (2026). Applied in the annual return. The Finanzamt calculates which is more beneficial for you.
The average German tax refund is EUR 1,095/year. For expats with deductible expenses, refunds of EUR 1,500–3,000 are common. Always file — even if not mandatory.
Monthly gross vs estimated net pay by Steuerklasse (2026 estimates, single, no church tax, statutory health insurance):
| Gross/month | Class I | Class III | Class IV | Class V |
|---|---|---|---|---|
| EUR 2,500 | ~EUR 1,680 | ~EUR 1,980 | ~EUR 1,680 | ~EUR 1,310 |
| EUR 3,000 | ~EUR 1,960 | ~EUR 2,340 | ~EUR 1,960 | ~EUR 1,510 |
| EUR 3,500 | ~EUR 2,230 | ~EUR 2,690 | ~EUR 2,230 | ~EUR 1,700 |
| EUR 4,500 | ~EUR 2,740 | ~EUR 3,380 | ~EUR 2,740 | ~EUR 2,060 |
| EUR 6,000 | ~EUR 3,430 | ~EUR 4,330 | ~EUR 3,430 | ~EUR 2,560 |
Estimates only. Use bmf-steuerrechner.de for exact figures.
| Mistake | Cost | How to fix |
|---|---|---|
| Not switching from I to III after spouse arrives | EUR 300–500/mo | Submit Antrag immediately after spouse's Anmeldung |
| Staying in IV/IV when income split is 60/40+ | EUR 100–200/mo | Switch to III/V for the higher earner |
| Not filing annual return as III/V couple | Penalty fine | File by July 31 — mandatory for III/V |
| Missing November 30 deadline | 1 year delay | Submit as early as possible |
| Not applying for Kindergeld after children arrive | EUR 255/child/mo lost | Apply at Familienkasse immediately |