German Tax Classes Explained: Steuerklasse I to VI

German tax classes (Steuerklassen) come in six types, and yours decides how much wage tax your employer takes from your salary each month. Class I is for single people, class II for single parents, classes III, IV and V for married couples, and class VI for a second job. Marriage puts both partners in class IV automatically, and couples can switch to III/V or IV with a factor. The class changes your monthly net pay. Your income decides the tax you owe for the year, and the tax return settles any difference.

I work as a career coach at International Motivation Training Deutschland (IMT), an approved provider, in programmes funded by the Jobcenter and the Federal Employment Agency. Since 2022 I have coached more than 2,000 adults in Germany's career and integration programmes, many of them starting over in Germany, a lot of them from Ukraine. In the programme I coach in, one session covers money: tax classes, the terms on a payslip, salary ranges and which jobs and apprenticeships pay best. The rules below come from the Income Tax Act (EStG) on gesetze-im-internet.de, checked in October 2026.

German tax classes at a glance

The definitions sit in § 38b EStG (opens in a new tab), the single-parent relief in § 24b EStG (opens in a new tab).

How your tax class reaches your employer

You never fill in your tax class on a form for your employer. When you start a job, your employer must retrieve your electronic wage tax data (ELStAM) from the Federal Central Tax Office (§ 39e EStG (opens in a new tab)). To do that, they need your tax ID (Steuer-Identifikationsnummer) and your date of birth.

If you do not give them, § 39c EStG (opens in a new tab) tells the employer to withhold under class VI. If the delay is not your fault, the employer can use provisional data for up to three calendar months. So if your first payslip shows class VI and a large tax deduction, check first whether HR has your tax ID.

Two changes happen without you asking:

• Marriage. When you marry, each spouse goes into class IV automatically.
• A second job. Your main job keeps your class. The second employer withholds under class VI.

Tax classes for married couples: III/V, IV/IV or IV with a factor

Couples have three options. All three end at the same yearly tax, because the tax office assesses your joint income at the end. The difference is how the monthly withholding is split between your two payslips.

The factor method in § 39f EStG (opens in a new tab) works like this: the tax office divides your expected joint income tax under splitting by the sum of wage tax you would both pay in class IV. If the result is below 1, each of you gets class IV with that factor on your payslip.

Two rules matter for the choice:

1. A tax return becomes mandatory. If one of you is taxed in class V or VI, or you use the factor, you must file (§ 46 EStG (opens in a new tab)). The same applies if you earned wages from two employers at the same time.
2. Benefits follow your class. Unemployment benefit uses the tax class recorded at the start of the year in which your claim arose (§ 153 SGB III (opens in a new tab)). A switch to class V before a likely job loss can lower your benefit, and a late switch to III may not count. If a contract ends soon, ask the Agentur für Arbeit before you change anything.

How to change your tax class

Apply at your tax office (Finanzamt), online through ELSTER or on the paper form. Under § 39 EStG (opens in a new tab), spouses can apply during the year, the change applies from the start of the following month, and for the current year the application must arrive by 30 November.

How to read a German payslip

A payslip (Gehaltsabrechnung or Lohnabrechnung) runs from gross (Brutto) to the amount paid to you (Auszahlungsbetrag). Here are the lines you will see, with the 2026 rates published by the statutory health insurer Techniker Krankenkasse (opens in a new tab):

A few notes on the lines that confuse people most:

• Health insurance. The general rate is 14.6%, split equally. On top comes your insurer's extra contribution (Zusatzbeitrag). The average for 2026 is 2.9%, and you pay half of your insurer's actual rate.
• Care insurance. The rate is 3.6%. Childless employees pay a 0.6% surcharge on their own share, which is why colleagues with children pay less.
• Church tax. You pay it only if you are a registered member of a church that levies it. The rate is 8% in Bavaria and Baden-Württemberg and 9% in the other states (opens in a new tab), calculated on your income tax.
• Solidarity surcharge. Since 2026, a single person pays it only from a taxable income of 74,969 euros, according to the Berlin Senate finance department (opens in a new tab). Below that, the line shows zero.

The 2026 numbers behind your wage tax

Under the 2026 tariff in § 32a EStG (opens in a new tab):

• The first 12,348 euros of taxable income are tax free (Grundfreibetrag).
• The 42% rate starts at 69,879 euros of taxable income, and the 45% rate at 277,826 euros.
• Every employee gets a flat 1,230 euros deduction for work expenses (§ 9a EStG (opens in a new tab)). If your real costs are higher, such as commuting, work equipment or training, claim them in your tax return.

To see your own net pay for each class, use the Federal Ministry of Finance's free wage tax calculator (opens in a new tab). Enter your gross pay, class, state and church membership, and compare.

Five payslip mistakes newcomers make

1. Starting a job without a tax ID. You get class VI until HR has your number. Bring it on day one.
2. Choosing III/V without planning for the tax return. The couple pays the same tax over the year. With III/V, part of it often comes as a back payment in the following year.
3. Switching class before claiming benefits. Unemployment benefit uses the class recorded at the start of the year. Check with the Agentur für Arbeit first.
4. Ticking a religion without knowing the cost. A church membership entry adds church tax to every payslip.
5. Skipping the tax return. Even when it is not mandatory, a return can bring money back if your work costs top the 1,230 euros flat deduction.

Tax is one of the systems I explain to people starting work in Germany, together with contracts and notice periods and how sick leave works. If you are still looking for the job that will produce the payslip, read finding a job in Germany as an English speaker. And if you want a plan for the move into German work, from the CV to the first months, see my career coaching or book a call.