Can I change my tax class if my marital status changes?
July 26, 2023 | 30,00 EUR | answered by Dirk Voigt
Dear tax consultant,
My name is Helma Kessler and I have a question regarding my tax class. Currently, I am classified in tax class I as I am single. However, I am planning to get married in the near future and I am wondering if this will change my tax class.
My future spouse is currently in tax class III. We would like to find the most tax-efficient solution for us and therefore it is important for us to know if it is possible to change my tax class after the marriage and what requirements need to be met for this.
We have already gathered some information, but we are unsure if we have understood everything correctly. It would be very helpful if you could inform us about the different options that arise after a marriage.
Furthermore, we would like to know what impact the change of tax class could have on our tax burden and if there could be any disadvantages that we need to consider.
Thank you in advance for your help and advice.
Sincerely,
Helma Kessler
Dear Mrs. Kessler,
Thank you for your question regarding your tax class in connection with your planned marriage. I am happy to assist you in finding the tax-optimal solution for you.
After marriage, you can change your tax class. You will automatically be classified in tax class IV if both spouses are unlimited tax residents in Germany. However, in your case, since your future spouse is currently in tax class III, it may be advisable to apply for a change to the tax class combination IV/IV.
The tax class combination IV/IV is often the most tax-efficient option for couples with similar high incomes. By combining both partners retain their individual income tax class and there is no higher tax burden for the sole earner through the splitting procedure. This way, both of you can benefit from the tax advantages resulting from the combination.
There is also the option for one spouse to switch to tax class III and the other to tax class V. This can be especially beneficial if one partner earns significantly more than the other. The partner in tax class V benefits from a higher net salary, as the tax burden is transferred to the higher-earning partner.
It is important to note that the choice of tax class combination can have an impact on the net salary and tax burden. Therefore, it is advisable to seek comprehensive advice before making a decision to choose the most advantageous option for you.
I hope this information is helpful and answers your questions. If you need further information or advice, I am at your disposal.
Best regards,
Dirk Voigt, Tax Advisor
