German Tax Classes
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German Tax Classes Explained

The tax class determines how much income tax is deducted from your gross salary. Here you will find a detailed overview of all six tax classes in Germany.

I
Tax Class I
Single, divorced or widowed employees

Who belongs to this class:

  • •Single employees
  • •Divorced employees
  • •Widowed employees (after the year of death)
  • •Married couples who live permanently separated
Basic tax allowance 2026:
10.908 €

Particularities:

  • •Standard tax class
  • •Medium tax burden
  • •No special allowances
II
Tax Class II
Single parents with children

Who belongs to this class:

  • •Single parents with at least one child
  • •Child must live in the household
  • •Entitlement to child benefit or child allowance
  • •No other adult person in the household
Basic tax allowance 2026:
10.908 € + Entlastungsbetrag

Particularities:

  • •Relief amount for single parents
  • •€4,008 for the first child
  • •€240 for each additional child
III
Tax Class III
Married – main earner

Who belongs to this class:

  • •Married if the spouse is in tax class V
  • •Married if the spouse does not work
  • •Widowed in the year after the partner's death
  • •Strongest tax advantage for the main earner
Basic tax allowance 2026:
21.816 €

Particularities:

  • •Lowest tax burden
  • •Double basic allowance
  • •Optimal with a large difference in income
IV
Tax Class IV
Married – both employed

Who belongs to this class:

  • •Both spouses are employed
  • •Similar incomes
  • •Automatic allocation upon marriage
  • •Can be combined with the factor method
Basic tax allowance 2026:
10.908 €

Particularities:

  • •Standard for married couples
  • •Medium tax burden
  • •Optionally with factor method
V
Tax Class V
Married – lower earner

Who belongs to this class:

  • •Spouse of the main earner (tax class III)
  • •Lower income
  • •Higher tax burden during the year
  • •Adjustment via the tax return
Basic tax allowance 2026:
0 €

Particularities:

  • •Highest tax burden
  • •No basic allowance
  • •Adjustment via tax return
VI
Tax Class VI
Second job and additional employment

Who belongs to this class:

  • •Second and further employment relationships
  • •Side jobs in addition to the main job
  • •No allowances
  • •Highest tax burden
Basic tax allowance 2026:
0 €

Particularities:

  • •For secondary employment
  • •No allowances
  • •Highest deductions
Changing your tax class

When is a change possible?

  • • Marriage: Automatically tax class IV, change to III/V possible
  • • Divorce: Change to tax class I or II
  • • Birth of a child: Change to tax class II possible
  • • Change in income: Optimisation of the III/V combination

Tip: You can change your tax class once per year. The application must be submitted to the tax office by 30 November.

Choosing the optimal tax class

For married couples:

  • • IV/IV: When incomes are similar
  • • III/V: When there is a large income difference (60/40 or more)
  • • IV/IV with factor: Most accurate taxation during the year

Important considerations:

  • • The tax class only affects monthly deductions
  • • The final tax liability is determined via the tax return
  • • With III/V, submitting a tax return is mandatory
Frequently asked questions about tax classes

Can I choose my tax class freely?

No. The tax class is determined by your family status. Only married couples can choose between different combinations.

Does the tax class affect my pension?

Yes, indirectly. Pension contributions are calculated from the gross salary. An unfavourable tax class can lead to lower net wages and thus to lower pension contributions.

What happens if I have a second job?

Second jobs are automatically assigned to tax class VI, unless it is a marginal employment (mini-job) up to €520.

Do I have to file a tax return?

With tax classes III/V, filing a tax return is mandatory. In other cases it is often voluntary, but usually worthwhile.