Your income tax class (Lohnsteuerklasse) determines how much income tax your employer deducts from your gross salary each month. Choosing the right class helps you plan your monthly family budget.

The six tax classes

Class 1 applies to single people; class 2 to single parents (with an additional allowance); classes 3, 4 and 5 are for married couples only; class 6 applies to a second job or when your employer does not have your tax ID.

The basic choice for married couples: 4/4 or 3/5

After marriage, couples are automatically assigned the 4/4 combination, which suits similar incomes. If one partner earns significantly more (roughly over 60% of the joint income), 3/5 often pays off: less tax is deducted from the higher salary in class 3 and more from the other in class 5. With 3/5, filing a tax return is mandatory, and from 2030 this combination is due to be replaced by the factor procedure.

The 4/4 combination with a factor (Faktorverfahren)

The factor procedure is a balanced alternative to 3/5: the tax office calculates a personal factor based on both partners' expected annual income. This helps avoid large additional payments after the end of the year.

How to change tax class online through ELSTER

You apply for the change through your ELSTER account or with a paper form at the tax office. Married couples can change their combination several times a year; the change takes effect from the following month.

What to check

  • Check that the correct class appears on your monthly payslip.
  • Compare the family's net income under 4/4 and 3/5 with the Federal Ministry of Finance's official calculator.
  • Apply through ELSTER to change class when a child is born or your partner changes job.
  • Remember: the tax class affects monthly deductions; your final tax is determined by the annual tax return.

Example situation

A husband earning €6,000 and a wife earning €2,000 a month switch from 4/4 to 3/5 and have about €450 more net in the family account each month.

Next step

Your tax class does not change your annual tax but the size of monthly deductions; choose the combination that suits your family's current needs.

Official information on this topic

Checklists and examples are organisational recommendations. Requirements depend on the procedure, the city and your situation; check them with the relevant office before you act. Please discuss legal and tax questions with an authorised professional.

This article was prepared with the help of AI. The example illustrates the approach and does not describe a client case.