Germany · Tax basics
German tax classes explained for expats
In Germany your employer withholds income tax from every payslip. Your tax class (Steuerklasse) tells them how much. It does not change how much tax you owe for the year in the end, only how much is taken each month. For married couples, though, the choice can make a difference of several hundred euros a month in cash flow.
The six classes
| Class | Who it is for |
|---|---|
| I | Single, divorced or separated, and married people whose partner lives abroad (in most cases) |
| II | Single parents who live alone with their child. Adds a relief of €4,260 a year, plus €240 for each further child |
| III | Married or in a civil partnership, when the other partner is in class V or has no income |
| IV | Married or in a civil partnership, both partners earning. The default after marriage |
| V | The partner of someone in class III. High withholding, because the class III partner gets both allowances |
| VI | A second or third job, alongside your main job. No allowances, so the most tax is withheld |
How you get your class
You do not apply for class I. When you register your address (Anmeldung), the tax office gives you a tax ID and your employer pulls your class electronically. When you marry, both partners are moved to class IV automatically. To switch to III/V or IV with factor, you file a short form (Antrag auf Steuerklassenwechsel) with your tax office, or online through ELSTER.
Couples: IV/IV, III/V or IV with factor?
Married couples are taxed together on their combined income (joint assessment, or Ehegattensplitting). The tax is calculated as if each partner earned half of the total. When incomes are very different, this saves real money. When they are equal, it saves nothing.
| Couple’s salaries | Tax if assessed separately | Tax if assessed jointly | Saving per year |
|---|---|---|---|
| €60,000 + €0 | €9,399 | €4,830 | €4,569 |
| €70,000 + €30,000 | €14,485 | €13,600 | €885 |
| €50,000 + €50,000 | €13,592 | €13,592 | €0 |
Income tax and solidarity surcharge, no church tax, no children, 2026 rules.
Your tax classes only decide when you get this saving:
- IV/IV withholds as if you were both single. If your salaries differ, you usually get a refund after filing your return.
- III/V gives the higher earner most of the saving every month. Often too little is withheld overall, and you must file a return and may have to pay extra tax.
- IV with factor spreads the saving fairly between you each month, close to your real annual tax. It needs a new application every year with your expected salaries.
German governments have long planned to replace the III/V combination with the factor method. If you choose III/V, check each year whether the rules have changed.
Why class V can be a trap
Unemployment benefit, parental allowance (Elterngeld) and sick pay are based on your net pay. In class V your net pay is low, so these benefits are low too. If one partner plans parental leave, it can pay to switch that partner to class III in good time: the new class must apply for at least seven months before maternity protection starts to count for Elterngeld.
Do you have to file a return?
In class I you usually don't have to, though it is often worth it. With III/V, IV with factor, or a second job in class VI, filing is mandatory.
Check your saving from joint assessment →
Sources
This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email contact@expatcents.com.