In Germany, the classification into tax classes plays a crucial role in determining the tax burden of citizens. This system allows an adjustment to their individual life circumstances, making it fairer. A particularly interesting and often discussed category is tax class 4, which is intended for married or registered civil partnership individuals living in the same household. In this article, we will look more closely at the specifics, the prerequisites for belonging, as well as the possible advantages and disadvantages of this tax class.
Who is tax class 4 intended for?
Tax class 4 is automatically assigned to all individuals who marry or establish a registered civil partnership. One does not need to apply at the tax office – after changing marital status, one is assigned to this group, and all associated privileges apply. However, this does not mean you have no influence over your situation – couples can opt for other solutions, such as the combination of tax classes 3 and 5 or tax class 4 with the factor method.
In tax class 4, both partners are treated equally for tax purposes, which is advantageous for couples with similar high incomes. However, if one person earns significantly more than the other, a switch to tax classes 3 and 5 may be considered to optimize the tax burden.
Difference between tax class 3 and 4 – A calculator can help with the decision
Although both tax class 3 and 4 apply to married or registered civil partnership individuals, there are some differences between them. The main difference is that in tax class 3, one person can benefit from lower tax rates, while the other person is taxed at higher rates. In tax class 4, both partners are taxed equally.
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Considering a change in tax class can be advantageous if it leads to a significant reduction in income tax. Such a decision is especially useful if one person’s income exceeds the other’s by at least 10%. It is assumed that one person should earn at least 60% of the family’s total income.
In summary, the larger the income difference between partners, the more attractive it becomes to classify the person with the higher income in tax class 3. Although the other person in tax class 5 has a lower net income, this difference is offset by the more favorable conditions in class 3.
What is the income tax for tax class 4?
The progressive tax rates for tax class 4 (wage tax class 4) increase with rising income. They start at 14% when the income exceeds the minimum tax threshold of 12,084 EUR and increase proportionally with higher incomes. The maximum tax rate of 42% applies for an income of 66,761 EUR and above. For incomes over 277,826 EUR, a tax rate of 45% applies. For more precise information on tax rates, it is worth using the Federal Ministry of Finance’s salary calculator.
Deductions and tax benefits in tax class 4
In tax class 4 in Germany, employees must also reckon with additional deductions apart from income tax. These include:
- Church tax – depending on the region, it amounts to 8% or 9% of income for membership in a church community,
- Solidarity surcharge – for couples whose income tax exceeds 35,086 EUR in 2025, an additional surcharge of 5.5% is levied on the salary or profit,
- Health insurance – the standard contribution to health insurance is 14.6%, half of which the employer covers. For a monthly salary over 4,837.50 EUR, costs are capped,
- Pension insurance – the contribution to pension insurance is 18.6% and applies to monthly incomes up to 7,050 EUR in the western and 6,750 EUR in the eastern federal states – costs are shared between employers and employees,
- Long-term care insurance – the standard contribution is 3.05%, with an additional 0.35% for childless couples – here, too, employers and employees share the costs,
- Unemployment insurance – the contribution is 2.5% and is levied on incomes up to 7,050 EUR in the West and 6,750 EUR in the East of Germany.
Tax reliefs in tax class 4
For persons in tax class 4, various tax reliefs are provided that can reduce the tax burden. In the year 2025, they can benefit from the following reliefs:
- Basic allowance – 12,084 Euro,
- Employee lump sum – 1,230 Euro,
- Lump sum for special expenses – 36 Euro,
- Lump sum for advertising costs – 1,230 Euro,
- Child allowance – 9,540 Euro per child.
Tax class 4 with factor method
Although tax class 4 is advantageous for couples with similar incomes, for those with a significant income difference, the factor method introduced in 2010 can be a better option. This method takes into account the income distribution between partners similarly to the combination of classes 3 and 5. However, the tax burden is more balanced for both partners and reflects the ratio of the incomes they share.
Their main advantages are a more balanced distribution of the tax burden between partners and a lower risk of having to make high additional payments to the tax office.
Calculation of the factor for tax class 4
The factor for tax class 4 can be determined using the calculator mentioned above – you simply enter your own and your partner’s data and change the tax class. This way, you can compare the result and analyze the benefits of this option compared to the conventional 4/4 as well as 3/5 division.
Is a tax return required for tax class 4?
Simply belonging to tax class 4 does not automatically require an annual tax return to be filed with the German tax office. Other factors that we have described in more detail in another post – Who must file a
tax return in Germany? – play a role. Whether it is worthwhile to file a tax return with tax class 4 depends on the individual situation. However, filing a tax return is mandatory when using the factor method to account for possible differences in predicted incomes.
Similar to tax class 4, many singles also wonder, whether they have to file a tax return with tax class 1. Here, too, the obligation depends on various factors, and often a voluntary submission is worthwhile.
For support with tax questions in Germany and determining the most favorable tax class, we recommend using the Taxando tax app. With the PREMIUM package, you can additionally rely on the professional assistance of a tax consultant – test our program today!
Maciej Wawrzyniak
In his private life, Maciej enjoys sporting challenges, playing the guitar, and swimming in the lake. He is also the proud father of three sons.
