German Tax Classes (Steuerklassen) Explained

Every employee in Germany is assigned a tax class (Steuerklasse) that determines how much income tax is deducted from their salary each month. There are 6 classes, and your class depends on your marital status, whether you have children, and whether you have multiple jobs.

Understanding your Steuerklasse helps you know what to expect on your payslip — and whether it makes sense to change it.

Calculate your net salary

All 6 German tax classes

Your Steuerklasse affects how much income tax (Lohnsteuer) is withheld from your gross salary each month. It does not change your total annual tax liability — that is settled at the end of the year through your Steuererklärung.

Class I

Steuerklasse I€12,096 Grundfreibetrag

Single, divorced, widowed (after 1 year), or married but permanently separated

The default class for most single employees. Standard deductions apply.

Class II

Steuerklasse II€12,096 + €4,260 Entlastungsbetrag

Single parents who live with and support at least one child

You must apply for Class II — it is not assigned automatically. Reduces tax noticeably for single parents.

Class III

Steuerklasse III~€24,192 (doubled allowance)

Married or registered partner — the higher-earning spouse

Significantly lower tax deductions. Always paired with Class V for the other spouse. Best for couples with a large income gap.

Class IV

Steuerklasse IV€12,096 each

Married or registered partner — both spouses have similar incomes

Default assignment for married couples. Both spouses are treated like single earners. Fairer when incomes are close to equal.

Class V

Steuerklasse VNo personal allowance

Married or registered partner — the lower-earning spouse (whose partner is in Class III)

Higher deductions than Class I. The household benefits overall from the III/V combination, but the Class V spouse pays more tax than they would in Class I.

Class VI

Steuerklasse VINo allowance

Anyone with a second or additional job

Highest deductions of all classes. Applied to any income beyond your primary employment. No Grundfreibetrag is granted.

How your tax class affects your net salary

Tax class controls how much income tax is deducted each month (Lohnsteuer). A higher allowance (Grundfreibetrag) means less tax withheld and a higher net salary. Class III has the highest allowance; Class V and VI have none.

For a gross salary of €4,000/month (single, no church tax, NRW):

Class I:~€2,650 net/month
Class III:~€3,050 net/month (married, higher earner)
Class V:~€2,200 net/month (married, lower earner)

Use the salary calculator to see exactly how each tax class affects your specific gross salary, including all social security contributions.

Try the salary calculator with your tax class

Tax class for new arrivals in Germany

When you start your first job in Germany, your employer assigns you Class I by default if you are single. Married couples arriving together should notify their employer and Finanzamt to switch to III/IV or III/V as appropriate — the default is Class IV for both spouses.

Your tax class is registered with the Finanzamt and linked to your tax identification number (Steuer-ID). Your employer accesses this automatically via the ELStAM system — you do not need to give your employer a paper certificate any more.

If you are moving to Germany for work, learning German is essential for navigating your first salary, tax return, and official communication.

Gross vs net salary in Germany Working in Germany — full guide

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 and register at the Finanzamt, your tax class is assigned based on your personal circumstances. Class I is the default for new arrivals and unmarried employees.
Can I change my tax class?: Yes, but only in certain situations. Married couples can switch between III/V and IV/IV once per calendar year by submitting an application (Antrag auf Steuerklassenwechsel) to their Finanzamt. Single employees are generally in Class I and cannot switch to other classes unless their personal circumstances change (e.g. becoming a single parent → Class II).
Is Class III always better than Class IV for married couples?: Class III gives the higher-earning spouse lower monthly tax deductions, but the total household tax burden depends on the combined income and the annual tax return (Steuererklärung). With the III/V combination, the lower-earning spouse (Class V) pays noticeably more tax. After the tax return, the difference is reconciled. Class III/V is beneficial when one spouse earns significantly more.
What happens at the annual tax return?: Your tax class affects how much income tax is deducted each month. At the year-end Steuererklärung, Germany calculates your actual tax liability. If too much was deducted (common in Class I and IV), you receive a refund. If too little (common in Class III), you may owe additional tax. Married couples with the III/V combination are required to file a joint tax return.
Does my tax class affect my unemployment benefit (Arbeitslosengeld)?: Yes, significantly. Arbeitslosengeld I is calculated based on your net salary in the 12 months before unemployment. A lower tax class (higher net salary, e.g. Class III) means higher unemployment benefit. Some couples intentionally switch to III/V before an expected job loss for this reason — but the rules around this are strict and the Agentur für Arbeit can investigate.

Calculate your net salary with your Steuerklasse

Enter your gross salary, tax class, state, and other details to see exactly what you will take home. Free and instant.

Open salary calculator