What the class does
Your employer takes wage tax (Lohnsteuer) from every payslip. The tax class (Steuerklasse) decides how much, by setting which allowances are built into the monthly deduction. It changes your monthly net pay, but not the tax you finally owe for the year: that is settled by the income tax return.
The six classes
- I: single, divorced or separated.
- II: single parents living with a child, who get the single-parent allowance (Entlastungsbetrag, €4,260 in 2026).
- III: married or in a civil partnership, when the partner is in class V. Much lower monthly tax.
- IV: married, both partners in class IV. Taxed like class I.
- V: the partner of someone in class III. Much higher monthly tax.
- VI: a second or further job, with no allowances at all.
Married couples: III/V or IV/IV?
III/V suits couples where one earns much more: the higher earner takes class III and the couple gets more money each month. Because the monthly deductions are only an estimate of the joint tax, couples in III/V must file a tax return and may have to pay some back. IV/IV fits couples who earn about the same. "IV with factor" (Faktorverfahren) spreads the tax more accurately when incomes differ.
Newly married couples are put in IV/IV automatically. To switch to III/V or the factor method, apply online through ELSTER or with a form at the tax office.
See the difference
The German Net Salary Calculator 2026 shows the monthly net pay in each class, with every deduction. For other countries, use the Take-Home Pay Calculator.