Taxes · Germany
German tax classes, explained
The class on a payslip helps calculate payroll withholding. Read it alongside the wider annual tax picture.
Fabian BeiningFinanz2Go · 4 min read
Start with these three questions.
The payroll class
Identify which wage-tax category appears on the payslip.
Monthly withholding
Understand the role of the class in payroll deductions.
Annual position
Keep the final assessment and credited payments in view.
The six classes are payroll categories.
The overview below is a guide to the usual categories in section 38b of the Income Tax Act. It is not an eligibility checker. Residency, family circumstances and special cases can matter.
A common starting category
For single employees and certain other employees who do not meet the conditions for another category.
Single-parent relief
For qualifying employees where the statutory single-parent tax relief applies.
One side of III/V
For eligible married employees using the III/V combination; the law also contains specific widowhood and other cases.
Married employees
The category for qualifying married employees who are not permanently separated.
The other side of III/V
Used where the qualifying spouse has been placed in class III on the joint application.
Additional employment
Generally for wage withholding on a second or further simultaneous employment, plus specified statutory cases.
Separate the monthly deduction from the annual picture.
Tax classes are used when wage tax is withheld through payroll. Where an income-tax assessment is made, the law provides for qualifying withholding and advance payments to be credited against the assessed tax. The class is therefore not, by itself, a statement of your final annual income-tax liability.
To see how the annual tariff works, read the 2026 income-tax guide. It separates gross salary from taxable income and explains marginal and average rates with a worked example.
This only illustrates subtraction. The figures are invented, include no other credits or charges, and do not calculate anyone’s German tax.
That is why comparing two payslips can answer a narrower question than comparing two complete annual tax positions. Keep those questions separate when reading a calculator result or an online discussion.
What is class IV with a factor?
Section 39f provides a factor method for qualifying spouses in class IV who apply for it. It uses the relationship between expected joint income tax under splitting and the expected wage tax under class IV. The tax office calculates the factor; this page does not calculate it or tell you which arrangement to choose.
The useful comparison is not “which class has the smallest number?” It is how the available payroll arrangement, estimated annual position and your actual circumstances fit together. An adviser or the tax office can address the individual case.
What to check if the class looks wrong.
- 01Read the tax-class entry on the actual payslip.
- 02Ask payroll which electronic wage-tax characteristics were used.
- 03Check whether the underlying family or employment information has changed.
- 04Use the relevant tax-office process for a correction or application.
Section 39 sets out responsibility for forming and changing wage-tax deduction characteristics. For a cross-border household, a second job or a change during the year, avoid treating a short online description as a final classification.
If the disputed deduction is Kirchensteuer, use our church tax guide to separate the membership record, the surcharge rate and the formal correction or exit procedure.
Common questions
Can I read my final annual tax from the class alone?
No. Start with the distinction between payroll withholding and the annual assessment above. The class alone does not describe your complete annual circumstances.
Can I use the salary calculator for every class?
Check the calculator’s supported cases first. The presence of six classes in the law does not mean a simplified calculator supports all six.
Sources and checks
- Income Tax Act, section 38b: wage-tax classes
Primary source · checked 26 October 2026 - Income Tax Act, section 39f: factor method
Primary source · checked 26 October 2026 - Income Tax Act, section 39: payroll tax characteristics
Primary source · checked 26 October 2026 - Income Tax Act, section 36: assessment and credits
Primary source · checked 26 October 2026
General explanation, not an individual tax-class recommendation. Check the current official rules and your own circumstances before applying for a change.
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