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Tax classes

Tax brackets are categories into which employees are classified based on their personal situation to determine the amount of income tax. In Germany, there are different tax brackets (e.g., I, II, III, IV, V, VI), which influence the tax burden depending on marital status, child allowances, and other factors.

Tax classes

Welcome to the "Tax Classes" category on a question and answer portal, providing comprehensive information about the German tax system, especially the various tax classes relevant to employees. Tax classes regulate how an employee's taxable income is calculated and directly influence the amount of income tax deductions. Here, you will find everything you need to know about the different tax classes, their significance, how they affect your net income, and how to choose the right tax class.

What are Tax Classes?
Tax classes are a system for taxing employees in Germany. There are six tax classes (I, II, III, IV, V, VI), which can be chosen based on personal circumstances. Each tax class has different effects on the amount of income tax deducted from an employee's gross income.

What Tax Classes Exist and Who Are They For?

• Tax Class I: For single employees or married employees where both spouses are in tax class IV.
• Tax Class II: For single parents who can claim a single parent relief amount.
• Tax Class III: For married or widowed employees if the spouse is in tax class V or VI and earns less.
• Tax Class IV: For married employees where both are in tax class IV. This class is usually chosen automatically if no other tax class is requested.
• Tax Class V: For the spouse who earns more and wants to achieve favorable tax deductions in combination with tax class III.
• Tax Class VI: For secondary jobs or when multiple employments exist.