Which tax class am I?

In Germany, there is a tax class system that categorizes taxpayers based on their personal and professional situation. This system plays an important role in calculating the tax burden and considers factors such as marital status, family and professional situation, and sources of income.

The six tax classes briefly explained

In Germany, the income tax system is regulated by different tax classes that vary according to personal circumstances such as marital status, employment relationship, and the income situation of the taxpayer. This classification is crucial for calculating the wage tax, which is directly deducted from the salary. There are a total of six tax classes, and each class has its own characteristics and rules. The following is a brief explanation of these six tax classes:

• Tax Class I: For single, divorced, or individuals with a partner outside the EU.
• Tax Class II: Aimed at single parents.
• Tax Class III: For married persons or those in a registered partnership whose partner is classified in tax class V, non-working partners, or partners outside the EU.
• Tax Class IV: Standard class for married persons or those living in a registered partnership.
• Tax Class V: For married persons or those in a registered partnership whose partner belongs to tax class III.
• Tax Class VI: For individuals with income from various employment relationships.

How to find out your tax class

To determine your tax class, you can review the categories described above. However, an easier way is to check your monthly pay slip or annual electronic tax certificate. These documents also contain your tax identification number and information about possible tax benefits. If you have not yet received any of these documents, contact your tax office directly.

Tax class choice for married couples

Married or registered partnership couples are automatically assigned to tax class IV. However, they can also choose the combination of tax classes III and V, especially if there is a significant income difference. This decision should be based on the individual situation, as it has a direct impact on the amount of the tax burden.

Tax class as a single person

As a single person in Germany, you normally fall into tax class I. This category also includes those who are divorced, widows, widowers, or have partners outside the European Union.

In this tax class, there are no extra benefits for married couples or families, which often leads to relatively higher taxes compared to other tax classes. Especially for individuals with lower income, tax class I can mean a higher tax burden. It is therefore advisable to explore possible tax reliefs, such as deductions for work or education-related expenses. Many also wonder, whether they even need to file a tax return with tax class 1 – the answer depends on various factors, but often filing a voluntary tax return can be worthwhile.

Tax class as a student

Most students and interns are classified into tax class I, as they are generally not married, not divorced, or do not raise children alone. The tax classification primarily depends on the family status and whether one has more than one job (then tax class VI applies) – the status as a student has no influence on this.

For many students and interns, it can be worthwhile to file a tax return, especially if the income is low. Often, there is the possibility to get a large portion of the paid taxes refunded.

Tax class for retirees with a working partner

The tax class for retirees depends on their marital status. As a single retiree, you remain in tax class I. If you are married or in a registered partnership, you can choose between tax class IV and the combination of tax classes III and V. Which option is most advantageous depends on the amount of pension and the partner’s income.

Tax class with two children

For two children, assignment to a specific tax class depends on whether you raise the children alone or with a partner. Tax class II is provided for single parents, which offers a special benefit. If you are married or in a registered partnership, classes III, IV, and V are available. Regardless of the chosen class, parents can claim tax benefits for children.

Easy check of tax class and tax return

Determining your own tax class is simple once you have identified it. For an optimal tax return and to benefit from available reliefs, it is recommended to use a tax app, such as Taxando. With this application, you can conveniently and quickly manage your tax affairs.