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Tax Classes in Germany (Steuerklassen):
What You Need to Know

Germany’s tax system uses tax classes (Steuerklassen) to determine how much income tax (Lohnsteuer) is deducted from your salary. Your tax class affects not only the amount of tax you pay but also the deductions you may be eligible for. Here’s a breakdown of the six tax classes:

  • Tax Class I (Steuerklasse I):
    For single, separated, or divorced individuals without children. This is the standard class for unmarried people.
  • Tax Class II (Steuerklasse II):
    For single parents who are entitled to the relief amount for single parents. This class offers additional tax benefits to support single-income households with children.
  • Tax Class III (Steuerklasse III):
    For married couples or registered life partnerships (Lebenspartnerschaft) where one partner earns significantly more than the other. The higher-earning partner is taxed at a lower rate, while the other is placed in Tax Class V.
  • Tax Class IV (Steuerklasse IV):
    For married couples or registered life partnerships where both partners earn roughly the same amount. Both partners are taxed at the same rate.
  • Tax Class V (Steuerklasse V):
    The complement to Tax Class III, typically for the lower-earning spouse or partner in a marriage or registered life partnership.
  • Tax Class VI (Steuerklasse VI):
    For individuals with multiple jobs. Income from secondary jobs is taxed at a higher rate.

Disclaimer:
The information provided in this blog post is for general informational purposes only and does not constitute tax, legal, or financial advice. While we strive to ensure the accuracy and timeliness of the information, tax laws are complex and subject to change. We recommend consulting with a certified tax advisor for advice tailored to your individual circumstances. In terms of financial consultation, we collaborate with German Sherpa Financial Solutions, specializing in services for Expats in Germany. Please note that this content does not serve as tax consulting.