German tax classes (Steuerklassen) explained in detail
Translated from the Arabic original. Read in Arabic
One of the first surprises for newcomers to Germany is that take-home pay does not depend only on gross salary but also on your tax class (Steuerklasse). Two people with exactly the same gross pay can take home hundreds of euros a month more or less because of their class. This guide explains the six classes, when each applies and what they really change.
First: the class decides the monthly deduction, not your final tax
This is the most important point to understand. Your tax class determines how much wage tax (Lohnsteuer) your employer deducts every month, which is an advance payment. Your actual final tax is calculated once a year on your total income and circumstances. That is why you may get a refund if the monthly deductions were too high, or pay the difference if they were too low.
Class 1: single people
For single, divorced and widowed people (from the year after the spouse’s death), and for married people whose spouse lives outside Germany in certain cases. It is the starting point for most employees.
Class 2: single parents
For a parent living alone with at least one child for whom they receive child benefit. It gives an extra allowance that lowers the monthly deduction, but it is not applied automatically: you must request it from the tax office (Finanzamt).
Classes 3 and 5: married couples with very different incomes
These are used together when one spouse earns much more than the other. The higher earner takes class 3 with a very low deduction, the other takes class 5 with a high one. The result is usually higher monthly take-home pay for the household. But watch out for two things. First, choosing 3/5 legally obliges you to file an annual tax return, which may end with a payment due. Second, some benefits calculated on net pay, such as parental allowance (Elterngeld) and unemployment benefit, are affected by your class, which is why some couples change class early, before a birth or a change of job.
Class 4: married couples with similar incomes
The default class for married couples when the marriage is registered, suited to spouses who earn similar amounts. There is also "class 4 with factor" (Faktorverfahren), which splits the deductions between spouses more precisely according to each one’s share of income and reduces the risk of a large payment at the end of the year.
Class 6: a second job
Applied to income from a second or additional job with another employer. It has no allowances, so its deduction is the highest. That does not mean you pay more tax in the end: the annual return adds both incomes together and calculates the real tax.
How to change your class
Married couples can ask the tax office to change their classes through the ELSTER online portal or with a paper form. The change reaches your employer electronically and appears in the following payslips. Before changing, try the different classes in a salary calculator to see how each option affects your monthly take-home pay.
This article is general information, not legal or tax advice. Laws change, so check the official sources below or the competent authority for your situation. Found a mistake? Tell us.