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Germany Tax Classes Guide (Steuerklassen I–VI)

Germany's six Lohnsteuerklassen (tax classes) determine how much wage tax (Lohnsteuer) is withheld from your monthly salary. Classes I–VI assign different tax-free allowances and rates for singles, single parents, and married couples, while the Ehegattensplitting ensures married couples are taxed fairly on their combined income.

Your Steuerklasse is set by the Finanzamt (tax office) and stored in the electronic payroll system ELStAM (Elektronische LohnSteuerAbzugsMerkmale). Your employer reads your class from ELStAM to calculate monthly Lohnsteuer, Solidaritätszuschlag, and Kirchensteuer withholding. Choosing or changing your class can significantly affect your monthly net income. For related reading, see our Personal Income Tax Guide → and Tax Return Guide →.

Tax Classes Explained (Steuerklassen I–VI)

  • Steuerklasse I (Single): For unmarried, divorced, or permanently separated individuals. Applies the basic Grundfreibetrag of €12,348 (2026) and the standard progressive rate table (Grundtabelle).
  • Steuerklasse II (Single Parent): For single parents with at least one child claiming Kindergeld or Kinderfreibetrag. Includes an additional Entlastungsbetrag (relief amount) of €4,260 per year (plus €240 for each additional child) to reduce the tax burden.
  • Steuerklasse III (Married — Higher Earner): For married couples filing jointly. The higher-earning spouse uses class III, which applies nearly double the basic allowance and lower progressive rates. Class III is combined with class V for the lower-earning spouse.
  • Steuerklasse IV (Married — Equal Earners): For married couples where both earn similar incomes. Both spouses use class IV, which applies standard rates to each. The Faktorverfahren (factor method) is an optional refinement for class IV couples.
  • Steuerklasse V (Married — Lower Earner): Used together with class III. The lower-earning spouse in class V has a minimal tax-free allowance, resulting in higher withholding. This combination optimises the higher earner's net pay but may require a tax return.
  • Steuerklasse VI (Second Job): For employees with multiple simultaneous jobs. The main job uses classes I–V; each additional job is mandatory class VI with no tax-free allowance, resulting in the highest withholding rate.

Ehegattensplitting (Married Couple Splitting)

  • How it works: Married couples are taxed jointly on their combined income using the Splittingtabelle. The tax is calculated as twice the tax on half the combined income: 2 × T(½ × combined income). This significantly reduces the tax burden when spouses earn different amounts.
  • Changing classes: You can switch between III/V and IV/IV any time, even retroactively for the current year. Changes are made through ELStAM at your local Finanzamt or online via the ELSTER portal. Many couples change after marriage, childbirth, or when one spouse reduces working hours.
  • Mandatory tax return: Couples in combination III/V must file a Steuererklärung (tax return) each year because the monthly withholding does not precisely reflect the final tax liability. Couples in IV/IV with Faktor or IV/IV without Faktor do not have a mandatory filing requirement.

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