Steuerklassen

Steuerklassen are the wage tax classes used in Germany to determine the amount of Lohnsteuer (withholding tax) that is deducted from an employee’s earnings. The classification depends on marital status, civil partnership, number of children, and other basic family circumstances. The system comprises six classes.

Class I applies to single persons who are not in a civil partnership. Class II is for single parents who live with at least one child and receive an additional relief for Alleinerziehende. Class III is for married or civil partners when one partner earns significantly more and is usually paired with Class V. Class IV is for married or civil partners where both earn roughly similar incomes. Class VI applies to employees with multiple jobs and is taxed at the highest rate for the second job and beyond.

In practice, couples choose tax-class combinations based on income levels: IV/IV is common when both partners earn similar amounts; III/V is often used when one partner earns much more, to reduce monthly withholdings, though the annual tax owed is settled in the tax return. A change to a different tax class can be requested after events such as marriage, divorce, change of partner, or the birth of a child, by submitting an Antrag auf Steuerklassenwechsel bei Ehegatten to the Finanzamt. The change generally takes effect for the following month.

It is important to note that Steuerklassen affect only the monthly withholding from wages; the final tax liability is determined by the annual Einkommensteuer after filing a tax return, which may result in a refund or additional payment.