Brutto-Netto Onlinebrutto-netto.online

German Tax Classes 2026: Complete Overview

Your tax class determines how much wage tax your employer withholds from your gross salary each month. Germany has six tax classes, assigned based on marital status and income situation.

Tax Classes at a Glance (2026)
ClassWho it applies toAnnual allowanceKey features
ISingle, divorced, permanently separated, widowed (from year 2 after death)€12,096Standard class for single persons without children
IISingle parents with at least one child in the household€12,096 + €4,260 relief allowanceEntlastungsbetrag for single parents is applied automatically
IIIMarried / civil partnership – significantly higher earner€24,192 (double basic allowance)Combined with partner's Class V; mandatory tax return
IVMarried / civil partnership – similar incomes€12,096Standard for couples with similar earnings; no compulsory return
IV + FMarried / civil partnership – differing incomesIndividual (factor calculated)Faktor procedure: proportional split, prevents large year-end payments
VMarried / civil partnership – significantly lower earner€0 (no basic allowance)Combined with partner's Class III; high monthly withholding
VISecond or additional employment alongside a main job€0 (no basic allowance)Highest withholding; no allowances; excess tax refunded via return
All 6 German tax classes at a glance: who pays how much wage tax and when is a tax return worthwhile?
Which combination works best for you?

Combination III / V

Recommended when one partner earns significantly more than the other (rule of thumb: the higher earner's share exceeds 60 %). The higher earner chooses Class III and pays noticeably less wage tax; the other partner receives Class V with higher deductions. Together the household takes home more net pay each month — but filing an annual income tax return is mandatory.

Combination IV / IV

A good fit when both partners have similar incomes. Tax is split equally; an annual return is not normally compulsory. Avoids large year-end payments and distributes the tax burden fairly.

Faktor procedure IV + F

The fairest option for couples with different incomes. An individual factor is calculated for each partner based on the actual income ratio. The lower earner pays less than in Class V; the higher earner pays slightly more than in Class III. Year-end surprises are rare. Apply at your local Finanzamt or via ELSTER.

How to change your tax class
  • Submit an application: At your local Finanzamt — in writing, in person, or conveniently via ELSTER.
  • Deadline:The application must be received by 30 November of the current year to take effect within the same year.
  • Frequency: Normally once per calendar year. After divorce, permanent separation, or death of a spouse an immediate change is possible at any time.
  • How it takes effect: The new class is updated in your electronic wage-tax data (ELStAM); your employer applies it automatically from the next payroll run after the update.

Frequently Asked Questions about Tax Classes

When does the tax-class combination III/V pay off?
The III/V combination is advantageous when one partner earns significantly more than the other (rule of thumb: income ratio greater than 60/40). Partner A in Class III receives the double basic tax-free allowance and pays much less wage tax each month. Partner B in Class V has higher deductions because no basic allowance applies. Together, the couple takes home more net pay during the year — but filing an annual tax return is mandatory because the actual annual tax liability is settled at year end.
What is the difference between tax class IV and IV with the Faktor procedure?
Tax class IV splits the basic allowance equally between both partners. The Faktor procedure (IV + F) calculates an individual factor for each partner that reflects the actual income ratio. The lower earner pays less wage tax than in Class V, and the higher earner pays slightly more than in Class III. The result: fewer year-end back-payments and a fairer monthly net pay for both. The Faktor procedure must be applied for at the tax office or via ELSTER.
How often can I change my tax class?
Normally you may change your tax class once per calendar year; the application must be submitted by 30 November. Exceptions apply for certain life events: after a divorce, permanent separation, or the death of a spouse the change can be made immediately without the annual restriction. The application is submitted to your local tax office (Finanzamt) — in person, by post, or conveniently via ELSTER (elster.de). The new class generally takes effect from the second month following receipt of the application.
What happens to my wage tax in tax class VI?
Tax class VI applies to a second or additional job alongside the main employment. No basic allowance or other deductions are taken into account, so the tax withheld is very high — often higher than your actual annual tax burden. When you file your annual income tax return, all sources of income are combined and the total tax is recalculated. Any excess wage tax withheld under Class VI is fully refunded after assessment.
Do I get overpaid wage tax back after filing my tax return?
Yes. If the wage tax withheld during the year exceeded your actual income tax liability — for example because of tax class V or VI, high work-related expenses, or special deductions — the tax office refunds the difference. The 2026 income tax return is due by 31 July 2027 (or 28 February 2028 if filed through a tax adviser). According to Germany's Federal Statistical Office, employees receive an average refund of around €1,000 per year.

How much net pay will you take home with your tax class?

Calculate your net salary instantly — free, no registration required.

Calculate net salary now