Which tax class is best suited for me as a single earner?
April 21, 2022 | 45,00 EUR | answered by Friedhelm Peters
Dear tax advisor,
My name is Heike Bahr and I work as a full-time single earner. I am facing the question of which tax bracket I should best classify myself into. Currently, I am classified in tax class I. Now I am wondering if it might be more advantageous to reclassify myself into a different tax class in order to achieve tax benefits.
My monthly gross salary is 3,500 euros. I have no children and I am not married. So far, I have not delved into the topic of tax brackets in depth, as it did not seem relevant to me as a single individual at first. However, I now want to make sure that I am not missing out on any financial benefits by being in a cheaper tax class.
My concern is that by being incorrectly classified into a less advantageous tax class, I may end up paying too much in taxes and therefore reducing my monthly net income. I would like to know if there is a tax class for me as a single earner without children that offers me tax benefits and increases my net income.
Can you please provide me with a recommendation on which tax class I should best classify myself into in order to optimize my taxes and maximize my monthly net income? I would be very grateful for a detailed consultation on this matter.
Best regards,
Heike Bahr
Dear Mrs. Bahr,
Thank you for your inquiry regarding your tax class choice as a single earner. It is understandable that you are considering whether a reclassification into a different tax class could be more advantageous for you. I am happy to provide you with a detailed recommendation on this matter.
As a single individual without children, you are currently in tax class I. This tax class is typically intended for single individuals or married couples without children. Tax class I is progressive, meaning that as income increases, so does the tax rate. With a monthly gross salary of 3,500 euros, it may be worth considering a reclassification to tax class II.
Tax class II is intended for single parents with children who do not receive any support from the other parent. Even though you do not have children, this tax class could be beneficial for you as the basic tax-free allowance is higher than in tax class I. This means that you would pay less taxes and therefore increase your monthly net income.
It is important to note that a reclassification into a different tax class can have an impact on your monthly net income. In tax class II, less taxes are deducted, which could result in you having more money available each month. However, you should also consider avoiding a potential tax repayment at the end of the year to prevent unexpected financial burdens.
I recommend contacting your local tax office and exploring a reclassification to tax class II. There, you can gather more information and determine if this tax class is the best choice for optimizing your taxes and maximizing your monthly net income.
I hope this recommendation helps you in your decision-making process. Please feel free to reach out if you have any further questions.
Best regards,
Friedhelm Peters, Tax Advisor
