Understanding German Tax Classes: A Simple Guide for Expats

What Are Steuerklassen?

Germany's tax system uses six tax classes (Steuerklassen) to determine how much income tax is withheld from your monthly salary. Your tax class affects your take-home pay significantly — sometimes by hundreds of euros per month.

The Six Tax Classes

Class I — Single Employees

For: unmarried, divorced, or widowed employees. This is the default class for most expats arriving in Germany.

Class II — Single Parents

For: single parents with at least one child living in their household. Slightly lower tax rate than Class I.

Class III — Married (Higher Earner)

For: the higher-earning spouse in a married couple. Significantly lower monthly tax withholding.

Class IV — Married (Equal Earners)

For: married couples where both earn roughly the same. Same rate as Class I but with marriage allowance.

Class V — Married (Lower Earner)

For: the lower-earning spouse when the other is in Class III. Higher monthly withholding.

Class VI — Second Job

For: income from a second job. Highest tax rate with no allowances.

Which Class Should You Choose?

• Single expat → Class I (automatic)
• Married, both working similar salaries → Class IV/IV
• Married, one earns significantly more → Class III/V combination

How to Change Your Tax Class

Visit your local Finanzamt (tax office) with your marriage certificate and passport. Changes take effect the following month. You can change once per year.

Important Note

Tax classes only affect monthly withholding — your annual tax bill is the same regardless. The annual tax return (Steuererklärung) balances everything out. Many expats in Class I get refunds of €500-€2,000 from their annual return.

Need help with your German taxes? Find English-speaking tax advisors on Trixtu.