German tax classes (Steuerklassen), explained in English
Your Steuerklasse doesn't change how much tax you owe for the year, it changes how much is withheld each month. Getting it right still matters: for your monthly cash flow, and hugely for benefits like parental allowance.
Which class are you?
| Class | Who gets it | Effect on withholding |
|---|---|---|
| I | Single, divorced, permanently separated, or spouse not resident in the EU/EEA | Standard |
| II | Single parents | Extra relief amount |
| III | Married, the (usually higher-earning) partner, other takes V | Lowest withholding |
| IV | Married, both partners by default | Same as I |
| V | Married, partner of a class-III spouse | Highest regular withholding |
| VI | Second jobs, and anyone whose tax ID isn't processed yet | Maximum withholding |
New in Germany? About class VI
Many internationals get their first payslip taxed in class VI because the employer didn't yet have their tax ID (Steuer-ID). Nothing is lost: once the ID arrives, payroll corrects it, and any excess comes back, at the latest through a tax return.
Married couples: III/V or IV/IV?
If one partner earns clearly more, III/V maximises combined monthly net, but a tax return becomes mandatory and back-payments are common. IV/IV with "factor" splits the burden accurately. The annual tax is identical either way; compare the combinations for your salaries in the Steuerklassenrechner (German interface, straightforward numbers).
When the class is worth real money
Wage-replacement benefits, parental allowance (Elterngeld), unemployment benefit, sick pay, are based on your net. Switching the expecting mother to class III at least seven months before maternity leave can raise Elterngeld noticeably: at €3,500 gross by about €193 a month compared with class IV, and by much more from class V (about €438). See how your net changes per class in the Germany salary calculator.
Frequently Asked Questions
What tax class do I get when I first start working in Germany?
Most new arrivals start in class I, but if the employer does not yet have your tax ID, your first payslip may be taxed in the higher class VI until the ID arrives.
Does switching to a better tax class reduce my annual tax bill?
No, the annual tax owed is the same in all classes; the class only affects how much is withheld each month.
Which tax class should the expecting mother choose to maximise parental allowance?
She should switch to class III at least seven months before maternity leave, since parental allowance is based on net income and class III raises the monthly net noticeably.
Last updated 2026-11-04. General information, not tax advice. Also available in German.