Steuerklasse in Deutschland. German Tax Classes: How to Determine and Change Yours

A tax class (Steuerklasse) is a tax category for employees in Germany. The main goal of the six-class system is to ensure a balanced distribution of the tax burden throughout the year. Correctly determining your tax class is key to optimizing your monthly take-home pay.

These classes apply exclusively to employees whose income tax is withheld by the employer before payment. The choice of tax class depends on marital status, the number of jobs, and whether you have children.

A Brief Guide to German Tax Classes

• Class I (Steuerklasse 1): Assigned to unmarried, divorced, widowed, or separated individuals. This is the basic class with minimal tax benefits.
• Class II (Steuerklasse 2): Intended for single parents raising children without a partner. This class provides an additional tax allowance (Entlastungsbetrag für Alleinerziehende), which significantly reduces the tax burden.
• Class III (Steuerklasse 3): Assigned to married couples where one partner earns significantly more, while the other earns substantially less or does not work at all. This class has the lowest tax burden.
• Class IV (Steuerklasse 4): Chosen by married couples with roughly equal incomes. The tax burden is divided equally between the partners.
• Class V (Steuerklasse 5): Chosen by one partner in a marriage if the other is in Class III. This class is characterized by high tax deductions, which offset the benefits of the third class.
• Class VI (Steuerklasse 6): Assigned to individuals with a second or subsequent official job. This class offers no tax benefits and has the highest tax burden.

Examples of Tax Class Choices for Different Situations

• Family with one breadwinner: III/V. For example, the husband in Class III and the wife in Class V. This ensures minimal taxes on the main income and maximizes the take-home pay.
• Spouses with equal income: IV/IV. This combination is the fairest, as each person pays taxes proportional to their income.
• Single parents: II. This class provides tax benefits that can lead to significant savings.
• Two jobs: I/VI or III/VI. The main job is taxed under Class I or III, while the second job is always taxed under Class VI. Any overpaid taxes from Class VI can be reclaimed by filing a tax return.

How to Find Your Tax Class

There are a few reliable ways to do this:

• Lohnabrechnung: Your monthly payslip contains information about your tax class, usually marked as “StKl” or “Steuerklasse.”
• Ask your employer directly: The accounting or HR department can provide you with this information.
• The ELSTER portal: You can check all your tax data, including your current tax class, on this official online service of the German tax authority.
• Contact the Finanzamt: Your local tax office can provide the information after verifying your identity documents.

What Happens If Your Tax Class Isn’t Correct?

Some employees may not receive the expected salary because they are automatically assigned to the “most expensive” Class VI. Timely changing the class can significantly increase your net income.

How and When to Change Your Tax Class

Changing your tax class is possible and necessary when your life circumstances change.

Main reasons for a change:

• Getting married or divorced.
• Having a child.
• A change in job or income.
• Your partner starts or stops working.

The procedure for changing your class:

• Through the Finanzamt: You can submit an application in person, by mail, or in some cases, by phone.
• Online via the ELSTER portal: This is the fastest and most convenient method if you have access to the service.

It’s important to remember that you can change your tax class once a year, but for significant life events (marriage, divorce, birth of a child), you can do it more frequently.

How Tax Class Affects Your Salary: A Calculation Example

It’s crucial to understand that your gross salary has more than just taxes deducted. The tax class only affects one portion of these deductions: income tax (Lohnsteuer).

The main deductions from your gross salary in Germany are:

• Income tax (Lohnsteuer)
• Social security contributions (Sozialversicherungsbeiträge):
  • Health insurance (Krankenversicherung)
  • Pension insurance (Rentenversicherung)
  • Unemployment insurance (Arbeitslosenversicherung)
  • Long-term care insurance (Pflegeversicherung)
• Solidarity surcharge (Solidaritätszuschlag)
• Church tax (Kirchensteuer) (if you belong to a church)

The income tax is the key variable most dependent on your tax class.

Calculation Example: Gross Salary of 3000 €

Let’s see what your net salary will look like with a monthly gross income of 3000 € for different tax classes. Please note that these calculations are approximate, as exact amounts depend on many factors (age, specific health insurance provider, etc.).

Estimated Deductions (as a percentage)

• Social Security: Approximately 20% of the gross salary. This amount is the same for all tax classes.
• Income Tax: This is where the differences between classes begin.

Let’s look at what your net salary will be with a monthly gross income of 3000 € for all six tax classes:

 

Important Note:

• Combinations III/V and IV/IV are always considered together for married couples.
• Class IV shows a similar level of deductions to Class I because it is calculated with the assumption that both partners will pay taxes similarly, leading to a small overpayment or underpayment at the end of the year.

Understanding the German tax class system is a crucial step towards financial literacy and optimizing your income. Being aware and proactive can help you avoid unnecessary tax deductions and ensure you get the maximum amount in your bank account. Don’t hesitate to seek advice from tax services or consultants to avoid mistakes.