Tax Classes in Germany: Tax Class, Deductions, and Changing Your Class

The tax class in Germany, Steuerklasse, affects how much Lohnsteuer is withheld from your paycheck each month. It does not determine the final annual tax amount: the total Einkommensteuer is calculated after filing your annual tax return. However, your monthly net pay depends on your tax class, as do, in some cases, the amounts of benefits calculated based on your net pay.

For an employee, the tax class is important in three situations: when starting their first job in Germany, after marriage or divorce, after the birth of a child, and when planning for benefits such as Elterngeld, Mutterschaftsgeld, Arbeitslosengeld, or Kurzarbeitergeld.

Key Points at a Glance

In Germany, there are tax classes 1 through 6.
Single employees are usually assigned tax class 1.
Single parents can switch to tax class 2 if they meet the requirements for the tax relief amount.
Spouses and registered partners typically use combinations of 4/4, 3/5, or 4/4 with a factor.
The tax class affects the monthly tax withholding but does not result in a “discount” on the final annual tax bill for married couples.
With a 3/5 factor and certain benefits, there is often an obligation to file a tax return.
In 2026, to change your tax class, you’ll need to use the current ELSTER or Finanzamt forms; the names and sets of forms may differ from previous paper applications.

What Are Lohnsteuer and Einkommensteuer?

Lohnsteuer is the payroll tax that an employer withholds each month and remits to the tax authorities. Einkommensteuer is the total income tax for the year.

If a person receives only a salary, Lohnsteuer usually functions as an advance withholding. After filing a tax return, the Finanzamt recalculates the year: it takes into account income, expenses, deductions, marital status, children, church tax, insurance contributions, and other data. As a result, there may be a refund or an additional payment.

Therefore, the choice of tax class for married couples often affects not how much the family will pay over the course of a year, but rather the distribution of payments throughout the year: more take-home pay now, or a lower risk of having to pay additional taxes after filing the tax return.

What tax classes are there in Germany?

Class	Who It Typically Applies To	What You Need to Know
Tax Class 1	Single people, divorced people, widowed people after the transition period, and spouses living apart for an extended period	The basic tax class for employees without single-parent benefits.
Tax Class 2	Single parents	Provides an Entlastungsbetrag if the child lives in the household and the conditions are met.
Tax Class 3	One spouse in a 3/5 couple, usually the one with the higher income	Results in a higher monthly net income, but often leads to a mandatory tax return and a possible additional tax payment.
Tax Class 4	Spouses and registered partners	Tax withholding is close to Tax Class 1 for each partner; this is the standard after marriage.
Tax Class 4 with a factor	Spouses with different incomes	Distributes withholding more closely to the couple’s expected annual tax liability.
Tax Class 5	The second spouse in a 3/5 couple	High withholding, usually for the partner with the lower income.
Tax Class 6	Second and subsequent jobs	The highest level of withholdings, because the main tax-free allowances have already been accounted for in the first job.

Tax Class 1

Tax Class 1 is typically assigned to employees who are not married or living in a tax-recognized partnership. This often includes single people, divorced individuals, spouses living permanently apart, and widowers after the transition period for Tax Class 3 has ended.

This class takes into account the basic Grundfreibetrag and the employee’s standard flat-rate expenses. If a person has additional expenses—such as high Werbungskosten, commuting costs, education expenses, or the cost of maintaining two households—these are typically claimed through a tax return or via Lohnsteuer-Ermäßigung.

Tax Class 2 for Single Parents

Tax Class 2 is intended for parents who live with a child without another adult partner in the household and are eligible for the Entlastungsbetrag für Alleinerziehende.

In 2026, the basic tax relief amount (Entlastungsbetrag) for a single parent is €4,260 per year. For each additional child, the amount increases by €240 per year. In practice, this reduces the taxable income and increases the monthly net pay, provided the tax class is entered in the employee’s electronic tax records.

Tax class 2 is not always assigned automatically. After the birth of a child, the relocation of the other parent, or a change in household composition, it’s worth checking your information with the tax office (Finanzamt) and, if necessary, submitting an application.

If a child is registered with both parents, the benefit is usually granted to only one parent. The decision is often based on who receives Kindergeld, but in certain cases, parents can notify the Finanzamt of a different allocation.

Tax Classes 3 and 5

The 3/5 combination is available to spouses and registered partners if they live together, neither is considered to be permanently living apart, and both are subject to unlimited tax liability in Germany or meet specific conditions.

Typically, the partner with the higher income chooses tax class 3, while the partner with the lower income chooses tax class 5. This increases the monthly net pay for the primary breadwinner but reduces the net pay for the other partner and often results in the requirement to file an annual tax return.

It’s important to understand that the 3/5 rule doesn’t make a family better off in terms of their total annual tax liability. It’s a way to spread out tax withholdings over the course of the year. If too little was withheld during the year, you may have to pay additional taxes after filing your tax return.

The 3/5 combination is particularly risky if both spouses earn significant amounts and do not plan for a tax reserve. For a couple with a single primary income, it may be convenient, but it still requires verification using a calculator and an annual tax return.

There is currently a discussion in Germany about transitioning from tax classes 3 and 5 to a factor-based model. For now, this does not abolish Ehegattensplitting and does not mean that spouses will lose the option of filing a joint tax return. However, when planning for several years ahead, it’s worth checking the current rules, as political timelines and technical implementation may change.

Tax Class 4/4

After getting married, spouses usually receive a 4/4 combination. This is convenient if both earn roughly the same amount. The tax withheld from each person is close to what it would be if they were in tax class 1.

If incomes vary significantly, a 4/4 tax class may result in too low a net income for the primary breadwinner and too high a tax withholding over the course of the year. In that case, the couple may consider a 3/5 or 4/4 tax class with a factor.

Tax Class 4/4 with a factor

Faktorverfahren — an option for married couples designed to distribute monthly Lohnsteuer more accurately between partners. The Finanzamt calculates the factor based on the spouses’ expected incomes so that the withholding is closer to the couple’s estimated annual tax liability.

Advantages of the factor model:

There is less risk of a large additional tax payment after filing your tax return;
The tax burden is distributed more evenly between spouses;
The partner with the lower income sees a more realistic net income;
This model is often fairer for dual-income families.

Cons:

Your monthly net pay may be lower than it would be in tax class 3 or 5;
You must submit an application and indicate your expected income;
If your salary changes, this factor may no longer accurately reflect your actual situation.

Tax Class 6

Tax class 6 applies to your second and subsequent jobs. The main tax-free allowances have already been applied to your first job, so the tax withholding for your second job is higher.

If tax class 6 suddenly appears for your primary job, you should check your ELStAM data with your employer and the tax office. Sometimes the cause is a registration error, a change of employer, a parallel employment contract, or incorrectly transmitted electronic tax data.

Deductions and Tax-Free Allowances That Are Most Often Important

Certain standard amounts are already factored into the tax classes. You can claim additional expenses through your tax return or via the Lohnsteuer-Ermäßigung if you want to reduce your monthly withholding in advance.

Deduction or Freibetrag	What does it mean
Grundfreibetrag	The portion of income that is exempt from Einkommensteuer. In 2026, the basic allowance is €12,348 per person.
Employee Flat Rate	Standard amount for income-related expenses for employees; if actual expenses are higher, they can be claimed separately.
Sonderausgaben-Pauschbetrag	A small standard amount for special expenses.
Vorsorgeaufwendungen	Insurance and pension contributions, which are accounted for according to separate rules.
Entlastungsbetrag für Alleinerziehende	Tax relief for single parents associated with tax class 2.
Kinderfreibetrag and BEA-Freibetrag	Child tax credits (Kinderfreibeträge) are compared with child benefit (Kindergeld) as part of the Günstigerprüfung.

For most employees, the main practical conclusion is simple: if your expenses exceed the standard flat-rate allowances, it makes sense to file a tax return. This is especially relevant if you have a long commute, a home office, a work-related move, are pursuing education, own professional equipment, or maintain two separate households.

Joint Tax Return and Spousal Tax Splitting

Spouses and registered partners can opt for a joint tax return if they meet the requirements. Under Ehegattensplitting, the couple’s total income is divided in half; a progressive tax rate is applied to each half, and the result is then doubled.

This system is particularly advantageous if the spouses’ incomes differ significantly. If their incomes are roughly equal, the benefit is less pronounced.

Choosing a tax class and filing a joint tax return are two different things. The tax class determines the monthly withholding. Spousal splitting determines the calculation of the final annual tax when filing a joint return.

When to File a Tax Return

The obligation to file a tax return depends not only on your tax class. It may arise due to additional income, benefits, multiple employers, tax-free allowances, payments subject to progressive taxation, and other circumstances.

For married couples, filing a tax return is often mandatory if they use a 3/5 or 4/4 combination with a factor. A tax return is also usually required if a person received wage replacement benefits above the established threshold, such as Elterngeld, Arbeitslosengeld, or Kurzarbeitergeld.

Even if you’re not required to file, voluntarily filing a tax return is often beneficial. If an employee isn’t required to file a tax return, it’s usually possible to file one for several previous years and claim a refund of overpaid taxes. For more details, see and the article on tax returns at.

How a Change in Tax Class Affects Your Salary

A change in tax class affects your monthly net pay because your employer withholds income tax based on different criteria. For married couples, however, this is primarily a redistribution of advance payments.

Example of how it works:

In a 3/5 split, the primary breadwinner receives a higher net income, while the other partner receives less;
With a 4/4 tax bracket, tax withholding is distributed more evenly;
For a 4/4 tax class with a withholding factor, the result is closer to the expected annual amount;
After you file your tax return, the Finanzamt recalculates your tax liability for the year and may issue a refund for overpayments or request additional payment.

Therefore, you should choose a tax class not only based on the maximum net pay in a single month, but also on your annual income, the risk of having to pay additional taxes, and your family plans.

Some benefits are calculated based on your net pay. Therefore, your tax class can affect the amount of your benefits.

This is especially important for:

Elterngeld;
Mutterschaftsgeld;
Arbeitslosengeld;
Kurzarbeitergeld.

If one spouse is planning to take parental leave and wants Elterngeld to be calculated based on a higher net income, the tax class must be changed in advance. For Elterngeld, it is not the last month before the birth that matters, but the calculation period; therefore, changing it too late may not help.

It’s best to check these details before becoming pregnant or as early as possible, because the rules for calculating benefits and the timing for applying the tax class depend on the specific benefit.

How to Change Your Tax Class

A change in tax class is usually processed through ELSTER or the tax office (Finanzamt). The employer does not select the tax class; instead, they receive the employee’s electronic tax identification data via ELStAM.

What to do:

Check your current tax class on your pay stub or in ELSTER.
Determine which combination you need: 4/4, 3/5, 4/4 with a factor, or tax class 2.
Prepare your and your spouse’s personal information, identification numbers, expected income, and information about your children, if applicable.
File an electronic return via ELSTER or use the current Finanzamt form.
Check your next pay stub: the new tax class should be reflected in the calculation via ELStAM.

For married couples, both partners usually sign the application if their tax class combination changes. For Tax Class 2, a single parent must confirm that they meet the requirements for the Entlastungsbetrag.

Application to change your tax class: Before submitting your application in 2026, be sure to check for the most current version of the form on ELSTER or the Federal Finance Administration’s forms portal.

Common Mistakes

Choose tax class 3/5 solely to maximize your net pay and forget about any potential additional payments.
Failing to file a tax return, even though it is mandatory due to your tax class, adjustment factor, or benefits.
Remaining in tax class 1 after becoming eligible for tax class 2.
It’s too late to change your tax class for Elterngeld or other benefits calculated based on your net income.
Do not check your ELStAM after changing employers.
Confusing the tax class with the final annual tax liability.

FAQ

Which tax class is best for married couples?

If incomes are similar, 4/4 is usually appropriate. If one partner earns significantly more, the couple can compare 3/5 and 4/4 using a weighting factor. The correct choice depends on income, the risk of having to pay additional taxes, and plans for benefits.

Can you change your tax class several times a year?

Under normal circumstances, you can change your tax class more than once a year, but it’s best to check the specific procedures and deadlines with ELSTER or the Finanzamt. The rules may differ after a divorce, the death of a spouse, the birth of a child, or if you’re living apart.

Is Tax Class 3 Always More Advantageous?

No. It may result in one spouse receiving a higher net income during the year, but the final tax amount will be recalculated after filing the tax return. With a 3/5 tax class, an additional tax payment may be due.

What should you do if you were assigned tax class 6 by mistake?

You should check with your employer to see which job is listed as your primary one and contact the Finanzamt to correct your ELStAM. An error could result in excessive tax withholding.

Do single parents automatically receive tax class 2?

Not always. If the conditions are met but the tax class has not changed, you must submit an application or update your information with the Finanzamt.

Do you need to file a tax return if you’re in tax class 4/4?

Not always. But filing a voluntary tax return is often beneficial if you had work-related expenses, travel costs, educational expenses, donations, moving expenses, high insurance premiums, or other deductions.

Does Ehegattensplitting remain in effect when tax classes change?

Yes, tax classes and Ehegattensplitting are different mechanisms. Potential reforms to tax classes 3 and 5 do not automatically mean the abolition of joint taxation for spouses.

Conclusion

The tax class in Germany is a tool for monthly Lohnsteuer withholding, not the final answer to how much tax a family will pay for the year. It’s important for single parents to check their eligibility for tax class 2, for married couples to compare 4/4, 3/5, and the factor, and for all employees to remember to file their tax returns and claim deductions.

To submit and verify your information, use , the Elster service at, and the latest Finanzamt forms.