German Tax Classes (Steuerklassen): Complete Guide

Overview

Steuerklassen (tax classes) tell your employer how much Lohnsteuer (wage tax) to withhold each month. They appear on your payslip as StKl or Steuerklasse — usually a Roman numeral from I to VI.

The critical point: changing class does not change how much tax you owe over the year — it changes cash flow. Couples who pick III/V often get a joint refund after filing because the higher-earning partner had too little withheld.

Use our salary calculator to compare take-home pay by class before requesting a change.

Prerequisites: Anmeldung completed, Steuer-ID received, and employment contract with gross salary.

All six tax classes at a glance

Classes III and V are a pair — you cannot choose III alone. Both spouses must pick a valid combination at the Finanzamt.

Class I — default for most expats

If you arrive single and take your first job, you will almost certainly see Steuerklasse I on your first payslip. No application is needed — the Finanzamt assigns it when your Steuer-ID enters the system.

Also class I:

• Divorced employees (not permanently separated with option for III/V)
• Widowed employees (after the initial bereavement period)
• Permanently separated spouses living apart

At €60,000 gross in 2026 (Berlin, public health, no church tax, no children), class I take-home is roughly €3,130/month in our calculator.

Class II — single parents

Steuerklasse II adds the Entlastungsbetrag für Alleinerziehende — €4,260 in 2026, plus €240 for each additional child beyond the first.

Requirements:

• Unmarried (or not considered married for tax purposes)
• Live in a separate household from the other parent
• Entitled to Kindergeld or similar support for at least one child

Class II is not automatic — apply at your Finanzamt with proof (Meldebescheinigung, Kindergeld letter, custody agreement if relevant).

Same €60,000 example → roughly €3,248/month net (about €118 more than class I).

Classes III and V — married, unequal incomes

When one partner earns significantly more, III + V maximises combined monthly take-home:

Compare with IV + IV on the same incomes: ~€4,899 combined — about €100/month less cash upfront.

Trade-off: The class V partner sees heavy deductions and may struggle with monthly budgeting. The couple often receives a joint tax refund after the annual return because III under-withheld relative to true liability.

Requirements:

• Legally married (or registered partnership)
• Both spouses unlimited tax liability in Germany (usually both resident)
• Joint election submitted to Finanzamt

Widowed employees may use class III in the year of death and the following year under specific rules — ask your Finanzamt.

Class IV — married, similar incomes

Steuerklasse IV treats each spouse as if single for withholding. Fair when both earn roughly the same.

IV mit Faktor (with factor)

Steuerklasse IV mit Faktor uses a Finanzamt-calculated Faktor (0–1) to split withholding more accurately between partners without the III/V cash-flow skew. Good when incomes differ moderately but not enough to justify III/V.

Apply for IV mit Faktor at the Finanzamt — they calculate the factor from your expected joint income.

Class VI — second job

Any additional employment beyond your main job uses class VI:

• No Arbeitnehmer-Pauschbetrag (€1,230 employee lump sum)
• Special high tariff under § 39b EStG
• Withholding often feels punitive — refunds are common after Steuererklärung

A Minijob alongside full-time work may run through class VI if registered as secondary employment. At €60,000 gross on a second job, net can drop to ~€2,588/month — versus ~€3,130 for the same salary as a main job in class I.

Inform HR when starting any second role so payroll registers the correct class.

How tax class affects your payslip

Your class influences only the Lohnsteuer line — not social insurance rates:

See our pension guide for social contributions that do not change with class.

How to check and change your class

1. Anmeldung + Steuer-ID

   Tax class data linked to your ID — arrives by post after registration

2. First payroll

   Employer reads ELStAM — class I for most single new arrivals

3. Life change (marriage, child, second job)

   Review whether your class still fits

4. Request change

   Finanzamt or ELSTER — married couples decide jointly

5. ELStAM update

   Usually effective next month on payslip

6. Annual tax return

   Settle over- or under-withholding — refund or top-up payment

Where it shows

• Payslip (Lohnabrechnung): field StKl or Steuerklasse
• ELStAM: electronic record your employer downloads — you can view via ELSTER

Changing class

Changes typically apply from the following month. Both spouses must agree on married combinations — one cannot switch to III alone.

ELSTER setup

ELSTER is the free online tax portal. Create an account to:

• View your ELStAM data
• Submit Steuerklassenwechsel forms
• File your annual Steuererklärung

Many expats use ELSTER with English browser translation — official forms remain in German.

Expats: common situations

Non-EU workers on a work permit use the same Steuerklassen as German employees — immigration status does not change tax class rules.

Annual tax return — why it matters

Because classes only adjust withholding, many employees overpay during the year (especially class V or VI) and receive an Erstattung (refund) after filing.

You may benefit from filing if:

• You were in class V or VI part of the year
• You had deductible expenses (commuting, work equipment, double household)
• You arrived or left mid-year
• You paid church tax but later left the church

Filing deadline: usually 31 July of the following year (extended with a Steuerberater). Refunds typically arrive 6–12 weeks after submission.

Common mistakes

1. Thinking III saves tax permanently — it only shifts withholding; joint liability is unchanged.
2. Class V partner surprised by low net pay — plan household budget on combined income, not individual payslips.
3. Forgetting class VI on side jobs — second employment must be registered correctly.
4. Assuming marriage abroad does not count — German Finanzamt recognises valid foreign marriages for class purposes.
5. Not updating after divorce — stale III/V combinations cause wrong withholding.
6. Skipping the tax return — leaving refunds unclaimed, especially after class V/VI years.
7. Confusing Steuerklasse with Steuer-ID — ID is your number; class is your withholding category.

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