German tax classes (Steuerklassen) explained

In Germany your Steuerklasse (tax class) decides how much wage tax (Lohnsteuer) your employer withholds from each paycheck. It does not change the total tax you owe for the year — that is settled by your annual return — but it has a big effect on your monthly net pay. There are six classes, and picking the right one (where you have a choice) can move hundreds of euros a month.

The six classes

• Class I— single, divorced, or widowed without the special allowances. The default for most single employees.
• Class II— single parents, who get an additional relief amount (Entlastungsbetrag).
• Class III— for the higher earner in a married couple; the lower earner then takes Class V. Class III withholds little, Class V withholds a lot.
• Class IV— for married couples where both earn roughly the same; each is taxed like a single person, optionally with a “factor” to fine-tune it.
• Class V— the partner of someone in Class III (see above).
• Class VI — applied to a second job; it has no tax-free allowance, so withholding is heaviest here.

The III/V vs IV/IV choice for couples

Married couples are the ones with a real decision. The III/Vcombination front-loads more take-home to the higher earner each month, which can suit a single-income or very unequal household — but it often leads to a tax bill at year-end because the withholding understates the true liability. The IV/IVcombination (with or without the factor method) spreads withholding more evenly and tends to avoid surprises. The total annual tax is the same either way; only the monthly cash flow and the size of any final settlement differ. Germany has been moving toward making IV/IV-with-factor the default for couples — check the current rules for your situation.

What the class does not change

Your Steuerklasse affects withholding, not your final tax. Two single people with identical income pay the same annual income tax regardless of monthly timing, because the progressive schedule (the Grundfreibetrag tax-free allowance, then rising rates up to the Spitzensteuersatz) is applied to the year as a whole. On top of income tax sit the solidarity surcharge (now only for high earners) and, if you are a registered member, church tax.

See it for your salary

The Germany take-home pay calculatormodels Steuerklasse I and the full national schedule, so you can see brutto → netto for any gross — for example a €55,000 salary. For the deductions that come after tax, read German social-security contributions. Class rules are individual and change — confirm yours before acting.