The 6 German Tax Classes (Steuerklassen)


Steuerklasse 1: Single / Separated

  • Who: Single, divorced, widowed, or separated employees.
  • Impact: Standard taxation. You get the basic personal allowance (Grundfreibetrag), meaning the first ~€11,784 (2024/2025) of your income is tax-free.


Steuerklasse 2: Single Parent

  • Who: Single parents living alone with at least one child who qualifies for child benefit (Kindergeld).
  • Impact: Lower taxes than Class 1 because you get an extra "relief amount" (Entlastungsbetrag) for the costs of raising a child alone.


Steuerklasse 3: Married (Higher Earner)

  • Who: Married couples where one spouse earns significantly more than the other.
  • Impact: Very low tax deductions. Important: Can only be used if the other spouse is in Class 5.


Steuerklasse 4: Married (Equal Earners)

  • Who: Married couples with similar incomes.
  • Impact: This is the "default" for married couples. Both are taxed similarly to Class 1.
  • Note: You can opt for "Class 4 with Factor," which distributes the tax burden more accurately based on your actual income split.


Steuerklasse 5: Married (Lower Earner)

  • Who: The spouse of someone in Class 3.
  • Impact: Very high tax deductions. This is often frustrating for the lower earner, but as a couple, your combined monthly net income is usually higher.


Steuerklasse 6: Secondary Job

  • Who: Anyone with a second job or if you haven't provided your tax ID to your employer.
  • Impact: The highest tax rate. There are no tax-free allowances applied here because they are already used in your primary job's tax class.


Which Combination is Best for Couples?

If you are married or in a registered partnership, you have two main choices:

CombinationBest when...4 / 4Both partners earn roughly the same amount.3 / 5One partner earns 60% or more of the total household income.