Guide
German tax classes explained
Information only · updated for 2026 · no guarantee
Your German payslip shows a Steuerklasse (tax class), a single Roman numeral that decides how much wage tax is withheld each month. It does not change what you owe over the year — that is settled in your annual return — but it does change your monthly take-home pay. Here is what each class means and how couples can optimise it.
The six classes at a glance
| Class | Who it is for |
|---|---|
| I | Single, divorced or widowed employees with no children in the household. |
| II | Single parents who qualify for the relief for single parents (Entlastungsbetrag). |
| III | A married employee whose spouse earns much less or nothing (paired with the spouse in class V). |
| IV | Both married partners, when they earn roughly the same. |
| V | The lower-earning married partner, when the other is in class III. |
| VI | A second (and any further) job, on top of your main employment. |
How III / IV / V work for married couples
When you marry, you and your spouse are placed in class IV / IV by default. From there you can choose the combination that best matches your incomes:
- IV / IV — best when both partners earn a similar amount. Withholding is balanced and neither is over- or under-taxed during the year.
- III / V — used when incomes are very unequal. The higher earner takes class III (low withholding, more net pay) and the lower earner takes class V (higher withholding). The couple's total is the same by year-end, but the monthly split shifts toward the class III earner.
The III / V split often triggers a back-payment or a larger refund at the annual return, because the monthly withholding rarely matches the final bill exactly. That is where the Faktorverfahren comes in.
The optional Faktorverfahren
Instead of III / V, married couples can opt for IV / IV with a factor — the Faktorverfahren under § 39f EStG. The tax office calculates a factor (a number below 1) that spreads the couple's expected joint tax across both paychecks in proportion to what each partner actually earns. The result is fairer monthly withholding and far smaller surprises at year-end. It is optional — you apply for it — and it is a good fit for couples who dislike large back-payments.
Frequently asked
Were tax classes III and V abolished?
No. A reform was discussed that would have moved married couples into the Faktorverfahren, but it was not enacted. Classes III and V still exist and can still be chosen.
Which tax class am I in as a single person?
Single employees without children are in class I. A single parent who qualifies for the relief for single parents (Entlastungsbetrag) is in class II.
Does my tax class change how much tax I owe overall?
Not for the year as a whole. Tax classes only change how much wage tax is withheld from each paycheck. Your final liability is settled in your annual income-tax return, so a "wrong" class mainly affects cash flow during the year.
Legal basis: § 38b EStG (the six tax classes) · § 39f EStG (the optional Faktorverfahren). Classes III and V remain in force. See also the German Rechner and our English calculators.