Tax Classes in Germany in 2026: Overview, How to Choose and Change Your Class

What Are Tax Classes in Germany?

Tax classes in Germany (Steuerklassen, Lohnsteuerklassen) are a system used to work out how much income tax (Lohnsteuer) is taken from your salary. They decide how much tax is deducted from your pay each month. The tax class you get mainly depends on your family situation: if you are single, married, have children, or other factors. If you want to know about other salary deductions in Germany, see our separate page.

A tax class (Steuerklasse) is a category that decides how much income tax is taken from your salary.

The tax class is not a separate tax and does not change the overall amount or rate of income tax (Einkommensteuer) you pay for the year. It only affects how much money you get “in hand” each month during the year.

The final amount of tax you owe is worked out later—usually after you submit your annual tax return. This means that people with the same yearly income but different tax classes may pay the same total tax in the end, but receive different net salaries each month.

Your tax class is chosen automatically when you start a job, based on information from the tax office. In some cases (for example, if you are married), you can change it.

List of Tax Classes in Germany

There are 6 tax classes (Steuerklassen) in Germany, which are used to calculate the income tax (Lohnsteuer) taken from your salary. Below is a list of the tax classes with a short explanation for each one.

You may sometimes hear about “tax class 0”, but there is no such official class in Germany. This usually refers to situations where no income tax is deducted from salary (for example, for cross-border workers), but it is not a separate tax class.

Let’s look at each tax class in more detail below.

Tax Class 1

Tax Class 1 (Steuerklasse I) is for people who are not married and live on their own.

This class includes:

• people who have never been married;
• divorced people;
• widows and widowers (after a certain period following their spouse’s death);
• spouses who are separated.

This is the most common tax class in Germany. In Class 1, there are no extra tax benefits related to having a family, so the standard (“basic”) rules apply. If someone has a child and raises them alone, they usually get tax class 2, which gives extra benefits.

Tax Class 2

Tax Class 2 (Steuerklasse II) is for single parents who raise a child and run their household alone. This class applies if (1) the person is not married (or lives separately), (2) there is a child living in the home who qualifies for child benefit (Kindergeld) and (3) the parent raises the child alone (without another adult living in the household).

The main difference from Class 1 is that there is an extra tax allowance called Entlastungsbetrag für Alleinerziehende, which reduces taxable income. This means that in Class 2, less tax is taken out than in Class 1 for the same income.

Entlastungsbetrag für Alleinerziehende is an extra tax allowance for single parents that lowers their taxable income. In 2026 it is 4,260.00 € per year for the first child and increases if there are more children. This allowance reduces the amount of income that is taxed, so the parent pays less income tax.

Tax Class 2 gives single parents a tax advantage and reduces their tax bill thanks to an extra allowance (Entlastungsbetrag für Alleinerziehende). This allowance lowers taxable income by 4,260.00 euros per year for one child.

If another adult moves into the household (for example, a new partner), you may lose the right to this class.

Combined Tax Class 3

Tax Class 3 (Steuerklasse III) applies to one spouse or registered partner in a married couple who are taxed together—usually the one with the higher income. This class is only used together with tax class 5, which goes to the other spouse with lower income.

Class 3 is suitable if one spouse earns much more than the other or if one partner does not work.

The difference between Classes 3 and 4 has to do with how the basic tax-free allowance is shared (see tax-free allowance amount, Grundfreibetrag). In Class 4, each spouse gets their own standard allowance (12,348.00 € per year per person). In Class 3, one spouse gets a double allowance (24,696.00 €) and the other (Class 5) gets none. This means that less tax is deducted from the salary of the spouse with Class 3, but overall it’s just a redistribution—not a reduction—of total family tax.

Please note: with this combination (III/V), you usually have to submit a tax return at the end of the year, and you may have to pay extra tax.

Tax Class 4 (with Factor)

Tax Class 4 (Steuerklasse IV) applies to married couples where both partners work. This class is usually given by default, if both spouses have similar incomes. Class 4 means that each spouse gets their own standard tax-free allowance, and taxes are taken out fairly evenly from both salaries.

In practice, in Class 4 each spouse pays tax as if they were single (like in Class 1), but their family situation is taken into account. This option is considered the most neutral and balanced, as monthly deductions are closer to what you actually owe at the end of the year.

The Factor Method (Faktorverfahren)

If there’s a difference between spouses’ incomes, there’s also an option called Class 4 with factor (Faktorverfahren), which makes monthly deductions more accurate based on total family income.

Class 4 with factor (Faktorverfahren) is a special option for couples where taxes are deducted more precisely according to both incomes. The tax office calculates a special factor that takes into account the difference between partners’ incomes and uses it when working out monthly deductions. This way, what you pay each month will be closer to your real annual tax bill—reducing the risk of having to pay back or get back large amounts after your annual return. This option is especially useful if incomes are different but not so different as to use Classes 3 and 5.

Combined Tax Class 5

Tax Class 5 (Steuerklasse V) is only used together with Class 3, for married couples who are taxed together. This class usually goes to the spouse with lower income, while the higher earner chooses Class 3.

The main feature of Class 5 is that it has higher monthly tax deductions. This is because almost no basic allowance is applied in this class.

The spouse with Class 3 pays less tax and gets more net salary; the spouse with Class 5 pays more tax and gets less net salary.

If you use Class III/V, you almost always have to submit a tax return at the end of the year, and you may have to pay extra tax.

Tax Class 6

Tax Class 6 (Steuerklasse VI) applies if you have a second or additional job(s). This class is used for all extra jobs apart from your main job. The main feature of Class 6 is that it has the highest monthly deductions. This is because: No basic allowance or tax benefits apply in this class.

This means that more tax will be taken from your second job than from your main job. However, this does not mean you will pay more total tax. When you do your annual return, any overpaid tax can be refunded.

How to Choose Your Tax Class

Your choice of tax class mainly depends on your family situation and how much each spouse earns. In most cases, your tax class is set automatically. However, married couples can choose a different combination to better suit their monthly finances.

Main recommendations:

• Single people: Class 1 (set automatically);
• Single parents: Class 2 (if conditions are met);
• Married couples with similar incomes: Class 4 / 4;
• Married couples with large differences in income: Combination of Classes 3 / 5;
• Married couples with different incomes but want to avoid paying extra at year-end: Class 4 / 4 with factor;

Your choice of tax class only affects your monthly deductions, not your total yearly tax bill. If you choose an unsuitable class, you may have to pay extra at year-end—or get a refund instead. So choosing your class is really about smoothing out your monthly budget during the year—not about saving on total taxes paid.

How to Change Your Tax Class

You can change your tax class in some situations in Germany. This is especially important for married couples who want to adjust how much is deducted from their salaries each month.

You can change your tax class if you get married or divorced, if there’s a big change in how much each spouse earns, or if you want to switch between combinations like 3/5 or 4/4 with factor.

To change your tax class, you need to apply at your local tax office (Finanzamt). Usually this is done using a special form called "Antrag auf Steuerklassenwechsel bei Ehegatten". You can submit this form on paper or online through the ELSTER system. In general, you can change your tax class once per year. In special cases (for example, if your family situation changes), you can do it again within the same year.

Tax Classes and Minijobs

If you work in a Minijob, usually tax classes do not apply. This is because Minijob salaries, up to a set limit (in 2026 up to 603.00 € per month) are taxed under a simpler system (see details on taxes and social contributions for Minijobs here).

If someone has both a main job and a Minijob, their main job will be taxed according to their normal tax class. The Minijob will usually be taxed at a flat rate and does not affect their main job’s tax class.