The Six Income Tax Classes at a Glance
The income tax class determines the amount of monthly income tax prepayment. Every employee is assigned a tax class depending on their marital status and living situation. Here you will find a detailed overview of all six income tax classes.
Income Tax Class I (1)
Tax class I (possibly with number of child allowances) is to be entered for employees who are single, married with a spouse living abroad, or permanently separated, living in a registered civil partnership, widowed, or divorced, and who do not meet the requirements for tax class III or tax class IV.
Income Tax Class II (2)
Tax class II is to be entered for employees who meet the requirements of tax class I but are single parents and for whom at least one child and no second adult person is registered in the household. For widowed persons with at least one child, this tax class applies from the month following the month of the spouse's death.
Income Tax Class III (3)
Tax class III is to be entered for employees
- who are married and do not live permanently apart and whose spouse does not receive employment income or who, at the request of both spouses, is classified in tax class V.
- who are widowed, if they and their deceased spouse were subject to unlimited income tax liability at the time of his or her death and were not living permanently apart at that time, for the calendar year following the calendar year in which the spouse died.
- if the partner is self-employed
Income Tax Class IV (4)
Tax class IV is to be entered for employees who are married, if both spouses are subject to unlimited income tax liability and do not live permanently apart and the employee's spouse also receives employment income. This does not apply if a wage tax card with tax class V has been issued for one spouse.
Income Tax Class V (5)
On the wage tax cards of spouses who are both in an employment relationship, tax class IV is usually to be certified. However, a wage tax card with tax class V is to be issued for one spouse (Section 38b No. 5 EStG), provided both spouses request that the other spouse be classified in tax class III.
Income Tax Class VI (6)
Tax class VI is entered when an employee requires a wage tax card for a second or further employment relationship. In addition, the employer is obliged to withhold wage tax according to tax class VI if the employee does not present a wage tax card.
Quick Overview of Tax Classes
Class I
For: Single, Divorced, Separated
Feature: Standard for singles
Class II
For: Single parents
Feature: Relief amount for single parents
Class III
For: Married (partner not employed)
Feature: Most favourable tax class
Class IV
For: Married (both employed)
Feature: Standard for married couples
Class V
For: Partner of Class III
Feature: Higher tax burden
Class VI
For: Second or side job
Feature: Highest tax burden
Advice on Optimal Tax Class Selection
Choosing the right tax class can have a significant impact on your monthly net income. Our experienced advisors will help you find the optimal tax class for your situation.
💡 Individual Consultation
We analyse your personal situation and recommend the best tax class.
📋 Application Assistance
Support in filling out applications for tax class changes.
🔄 Regular Review
Review of your tax class when your living situation changes.
Arrange Professional Consultation
Let our expert Johannes Stetten advise you personally. With many years of experience in tax law, we will find the optimal solution for your situation together.
Johannes Stetten
Chairman
Lohnsteuerhilfe e.V. Munich