Tax classes 1–6 explained
Your income tax class (Lohnsteuerklasse) determines how much wage tax (Lohnsteuer) your employer withholds from your salary each month. It does not change your final annual tax, only how it is spread across the year. Below is a factual overview of all six classes (§ 38b EStG).
Tax class I
For single, divorced or permanently separated employees, as well as widowed persons (from the second year after the year of death). The basic tax-free allowance (Grundfreibetrag, 2026: €12,348) applies, along with the employee lump-sum allowance (Arbeitnehmer-Pauschbetrag) and the special-expenses lump sum (Sonderausgaben-Pauschbetrag).
Tax class II
For single parents who live with at least one child for whom they receive child benefit (Kindergeld) or the child allowance (Kinderfreibetrag), and who receive the single-parent relief amount (Entlastungsbetrag für Alleinerziehende, § 24b EStG: €4,260 per year, plus €240 for each additional child). Otherwise as class I.
Tax class III
For married or civil-partnered employees when the partner earns no wages or is in class V. The double basic allowance is already taken into account in the monthly wage-tax deduction. Widowed persons are in class III in the year after the partner's death (so-called widow's splitting, Witwensplitting).
Tax class IV
The standard for married couples and registered civil partners when both earn wages. The deduction matches that of class I; the IV/IV combination distributes the tax burden evenly when both earn similar amounts.
Tax class IV with factor (Faktorverfahren)
As class IV, but on request the tax office additionally calculates a factor that reflects the expected joint annual tax more precisely in the monthly deduction. This makes back-payments at year-end less likely.
Tax class V
The counterpart to class III: it applies to the partner with the lower wages when the other has chosen class III. The basic allowance and child allowances are not taken into account here, so the monthly deduction is correspondingly higher.
Tax class VI
For the second and every further employment, and when no electronic wage-tax deduction features (ELStAM) are available to the employer. No allowances are taken into account; the deduction is the highest.
Comparison overview
| Class | Typical situation | Basic allowance in the deduction? | Notable feature |
|---|---|---|---|
| I | Single, divorced, permanently separated, widowed (from the second year) | yes | — |
| II | Single parents with a child | yes | Single-parent relief amount |
| III | Married/partnered, partner with no wages or in class V | double | only as a couple combination (with V) |
| IV | Married/partnered, both earning wages | yes | factor available |
| V | Partner with the lower wages (combined with III) | no | only as a couple combination (with III) |
| VI | Second and every further employment | no | no allowances; second job |
Frequently asked questions
Which tax class do I have as a single employee?
Single employees are generally in class I. Class II applies only to single parents who are entitled to the single-parent relief amount (Entlastungsbetrag für Alleinerziehende).
What is the difference between tax class 3 and 5?
Class III receives the double basic allowance in the wage-tax deduction, class V none. The two apply only as a combination for couples with clearly different salaries. The amount of annual tax does not change as a result, only its monthly distribution; with the III/V combination an income tax return is mandatory.
How often can you change tax class?
Since 2020 a change is possible several times a year. The application is filed with the tax office (form or ELSTER) and takes effect from the following month.
Which tax class applies to a second job?
The first employment keeps its tax class; every further employment is taxed under class VI. Mini-jobs up to the marginal-earnings threshold (Geringfügigkeitsgrenze) are exempt from this.
Does the tax class affect the amount of annual tax?
No. The tax class only controls the wage-tax deduction during the year. The final tax results from the income tax return.
What does tax class 4 with factor mean?
With class IV with factor, on request the tax office calculates a factor that reflects the expected joint annual tax more precisely in the monthly deduction. This makes back-payments at year-end less likely.
Sources: § 38b EStG (gesetze-im-internet.de), wage-tax program flow chart 2026 / Programmablaufplan (bmf-steuerrechner.de), § 24b EStG.
This calculation is for informational purposes only. Results are estimates and do not substitute professional guidance. For binding information please consult a Steuerberater or Lohnsteuerhilfeverein.