Tax classes in Germany (Steuerklasse I–VI) explained

Who needs it

Every employee in Germany has a Lohnsteuerklasse (wage tax class). You don't apply for it. The tax office stores it with your tax ID, and your employer downloads it electronically. The class decides how much Lohnsteuer (wage tax) is taken from each payslip. Your real tax for the year is only settled later, in the tax return.

Registered civil partners are treated like married couples.

When

• Starting a job: your class is set automatically. It usually appears on your first payslip. See how to read your payslip.
• After marrying: both spouses move to class IV automatically, once the registration office reports the marriage.
• Changing class: married couples can apply several times a year. The application must reach the tax office by 30 November. The new class applies from the start of the month after you apply.

Married couples: III/V, IV/IV or IV with factor

The class combination does not change your final tax as a couple. It only changes how the tax is spread over the year.

• IV/IV: each spouse is taxed like a single person. This works well when you earn similar amounts.
• III/V: the higher earner pays much less tax each month and the lower earner pays much more. When incomes are very different, this gives the couple more money during the year. It often leads to a back payment later.
• IV/IV with factor (Faktorverfahren): both stay in class IV, but the tax office calculates a factor below 1. This spreads the benefit of joint taxation according to each person's share of income. The factor is valid for up to two years.

Are tax classes III and V being abolished?

Not yet. As of September 2026, there is no law that abolishes classes III and V. An earlier draft planned to move all couples to the factor procedure from 2030, but that part was removed before the law passed in December 2024. The 2025 coalition agreement again says III/V should be merged into the factor procedure, but no start date has been set. Until a law passes, III/V remains available.

Class VI for a second job

A second job with a separate employer is taxed in class VI. Class VI has no tax-free allowance, so the deduction is high. Some of it often comes back in your tax return. With more than one employer at the same time, filing a return is usually mandatory. A Minijob (small job) is normally taxed at a flat rate by the employer instead, so it usually does not need class VI.

What you need

• Your tax ID (Steuer-Identifikationsnummer)
• An ELSTER account (the tax office's online portal), which is free
• For a couple: both spouses' tax IDs, because both must sign the application for III/V or the factor procedure

How to do it

1. Create an ELSTER account at elster.de. The activation letter arrives by post, so allow time.
2. Find the form. In ELSTER, look for the application for a change of tax class for spouses (Antrag auf Steuerklassenwechsel bei Ehegatten/Lebenspartnern). For the factor procedure, use the application for wage tax reduction.
3. Choose the combination and enter both spouses' details. Both must agree to III/V or the factor procedure. One spouse alone can switch the couple back to IV/IV.
4. Send it before 30 November.
5. Check your next payslip. Your employer receives the new class electronically, so you don't need to hand in anything.

You can also send the paper form to your Finanzamt.

What happens afterwards

The tax office updates your data and confirms the change. Your employer applies the new class from the next month. At the end of the year, the tax return compares what was withheld with what you actually owe.

Common problems

My payslip shows class VI but this is my only job

Your employer may not have your tax ID yet, or the data could not be downloaded. In that case, class VI is applied temporarily. Give your employer your tax ID. Too much tax withheld can be claimed back.

Can I choose tax class III as a single person?

No. Class III is only for married couples or registered partners, plus a short transition period for widowed people.

Which combination saves the most tax?

None of them. Over the whole year, the couple's tax is the same. Only the monthly split and the risk of a back payment differ.

How often can we change tax class?

Several times per year, until 30 November each year.