Your employer withholds income tax every month—the amount depends on your tax bracket. Choosing the right one can make a difference of several hundred euros a year. Or, in the case of parental allowance, several thousand.
Six classes, one system—the tax office assigns them based on marital status. Sometimes you have a choice, sometimes you don’t. Here’s what’s really behind it all.
The tax bracket only affects the monthly withholding tax—not what you actually owe at the end of the year. The tax office always calculates the final tax liability based on your annual income. Any overpayment or underpayment is settled through your tax return.
Applies to unmarried individuals, divorced individuals, those permanently separated, and widows/widowers starting in the second year. The basic exemption amount in 2026 is €12,348 (Section 32a of the Income Tax Act)—no Income tax is due on amounts below this threshold. Payroll tax applies starting at approximately €1,425 gross per month. Filing a tax return is voluntary—according to the Federal Statistical Office, the average refund is €1,172.
Anyone living alone with a child is entitled to a tax relief amount of €4,260 (first child) plus €240 for each additional child (Section 24b of the Income Tax Act). This amounts to up to €355 more in take-home pay per month. Important: This isn’t granted automatically—you must actively apply for it, either through taxtastic or directly via ELSTER. If parents are separated, only one of them can claim the amount per child.
Only in combination with Class 5. The double basic exemption amount (€24,696) ensures the lowest payroll tax deductions. Downside: Almost always results in a year-end tax payment—filing a tax return is required by law (Section 46(2)(3a) of the Income Tax Act). Positive side effect: Parental allowance, sick pay, and unemployment benefits are higher in Class 3.
After marriage, both spouses are automatically placed in Class 4—no application required. The most sensible choice for couples with similar incomes: fair deductions, rarely any additional payments due. The factor method (Class 4 with a factor) distributes the splitting benefit on a monthly basis—but must be reapplied for every two years.
No basic exemption, highest monthly deductions. The annual adjustment via the tax return corrects this. What cannot be corrected: Anyone in Class 5 who wishes to receive parental allowance will permanently receive less—the parental allowance is based on the net income during the assessment period and cannot be changed retroactively. If you’re planning to have children, switch classes in a timely manner.
As soon as you start working for a second employer, Tax Class 6 automatically applies—no choice, no allowances. Any excess withholding is refunded via your tax return—which is almost always worth it for a side job. Minijobs earning up to €556 per month are not subject to this rule. Self-employed side jobs are reported on your income tax return, not through tax class 6.
Tax brackets have a direct impact on specific life decisions. Here are the eight most common situations—each with clear recommendations for action.
Both spouses are automatically assigned to Class 4—no application is necessary. If there’s a significant income disparity (rule of thumb: 60/40 or greater), it’s worth switching to 3/5. Tax tip: Getting married in December often saves more than getting married in January, because the spousal income splitting applies retroactively for the entire calendar year.
The most important tip on this page: Anyone who will be receiving parental allowance must switch to Class 3 at least 7 months before the start of maternity leave (Section 2c BEEG). Parental allowance amounts to 65% of net salary—switching from Class 5 to Class 3 on a gross salary of €2,700 means over €4,000 more over 12 months. After the birth, a change has no effect on the calculation of parental allowance.
The relief amount of €4,260 (first child) plus €240 for each additional child is not granted automatically—you must actively apply for Class 2. You can do this for free via taxtastic. For separated parents: Only one parent can claim the amount per child; by default, it’s the parent who receives the child benefit—but this can be changed by mutual agreement.
During the year of separation, you may retain your previous tax class until December 31—including the 3/5 rule. Starting the following year: Tax Class 1, or 2 for single parents. Anyone who moves out permanently must notify the tax office. Divorce in December: Marital income splitting still applies for the entire current year.
Retirees do not have an income tax class—pension income is reported directly on the income tax return. Anyone who works as an employee in addition to receiving a pension is assigned Class 1 for that job (or Class 6 for a second job). If total income exceeds the basic exemption amount (€12,348), filing a tax return is mandatory. Tip for married couples: When one partner retires, it’s worth checking your tax class.
Second job automatically falls under Class 6—no choice. Any excess tax withheld is refunded through the tax return—which is almost always worth filing for a side job. Exception: Mini-jobs up to €556 per month. Self-employed side work (freelancing, fee-based work) is reported on the income tax return, not through tax class 6.
Class 1 by default. Anyone earning less than the basic exemption amount (€12,348/year) pays no Income tax—but the employer still withholds Income tax monthly. The tax return recovers this amount and claims tuition fees, textbooks, a laptop, and travel expenses as income-related expenses. Multiple jobs: Main job in Class 1, side job in Class 6.
In the year of death and the immediately following year, the “grace splitting” rule applies—Class 3 remains in effect (Section 32a(6) of the Income Tax Act). Starting in the second year: Class 1, or Class 2 for single parents. The “grace splitting” also applies in the income tax return—the favorable splitting rate is applied one last time.
The annual tax burden is identical for 3/5, 4/4, and the factor method. What differs is when you pay and how much—and what that means for parental allowance, sick pay, and unemployment benefits.
In tax class 3, the basic exemption is doubled—the employer withholds too little, while the partner in tax class 5 withholds too much. At the end of the year, the tax office calculates the correct amount—almost always resulting in an additional payment, and filing a tax return is mandatory. This is worthwhile if one partner earns more than 60% of the joint income, or if income replacement benefits (parental allowance, sick pay, unemployment benefits) are on the horizon for the primary earner.
Standard after marriage. Fair, equal deductions for both—hardly any additional payments due, no obligation to file a tax return. Ideal when both earn roughly the same amount. No monthly cash flow advantage for the higher earner—but no unpleasant surprises either.
The tax office calculates an individual factor (always < 1) that proportionally divides the splitting benefit on a monthly basis. Hardly any additional payments, fair distribution, splitting effect included. Must reapply every two years. Tax return required.
Anyone who will be receiving parental allowance must be in Class 3 at least 7 months before the start of maternity leave (§ 2c BEEG)—so that it applies to the majority of the 12 assessment months. After the birth, a change will have no effect on the current parental allowance calculation.
Answer three questions and see right away which tax bracket fits your situation.
Select your marital status—the result will appear immediately.
Select your marital status to view the results.
Guidance only—not a substitute for individual tax advice. Effective: Tax Year 2026.
With your free taxtastic account, we’ll guide you step by step through the application process with the tax office and provide all the information you need. You won’t have to type a thing.
Sign up for free at taxtastic.de—no credit card, no upfront payment. All you need is your email address and tax ID number.
You’ll find the application right on the dashboard. Select your desired tax class—taxtastic will guide you through all the necessary information, no complicated forms.
We’ll show you every value you need for the application so you can copy it. For most changes, you’ll submit the application together.
Your employer will automatically receive the new tax class via ELStAM. It takes effect the month after you submit your application.
To ensure the change takes effect this year, your application must be received by the tax office by November 30. The new tax class takes effect the month after you submit your application. You can change your tax class multiple times a year. In the event of life changes, you can do so at any time:
Before parental leave: At least 7 months before the start of maternity leave in Class 3—for significantly more parental allowance.
Large income difference: Switching to Class 3/5 results in a higher monthly net income—the annual tax burden remains the same.
Not retroactive—always takes effect the month after the application is submitted.
No, there is no obligation to do so. However, many who file one anyway receive a refund—on average €1,172, according to the Federal Statistical Office. Income-related expenses (commuting allowance, work equipment, continuing education), special expenses, and extraordinary burdens are only fully taken into account in the tax return. taxtastic takes care of this in just a few minutes, directly via ELSTER.
In tax class 1, the following applies in 2026: basic exemption of €12,348 (Section 32a of the Income Tax Act), employee flat-rate allowance of €1,230 (Section 9a of the Income Tax Act), and special expenses flat-rate allowance of €36. Income tax is only due on gross monthly income of approximately €1,425 or more. Church tax and the solidarity surcharge may apply, depending on your situation.
Both spouses are automatically assigned to tax class 4—even if one of them isn’t working at all. Anyone who wants to change this (to 3/5 or the factor method) can easily submit the application via taxtastic. Getting married in December is beneficial from a tax perspective: Spousal income splitting applies retroactively for the entire calendar year.
No—a change takes effect no earlier than the month following the application. Any overpayment or underpayment of income tax is always adjusted through the tax return. What cannot be corrected: income replacement benefits such as parental allowance, which were calculated based on the net income corresponding to the tax class at the time.
Class 4 with an individually calculated multiplier below 1. The splitting benefit is distributed on a monthly basis rather than appearing as a year-end overpayment. Valid for two years; a new application is required afterward. Filing a tax return is mandatory—significantly lower risk of overpayment compared to 3/5.
Annual tax burden: identical. 3/5 is worthwhile if one spouse earns more than 60% of the joint income—or if the primary earner is eligible for parental benefits, sick pay, or unemployment benefits. 4/4 makes sense for similar incomes—no additional payments. The factor method combines both approaches.
Anyone who will receive parental allowance must be in tax class 3 at least 7 months before the start of maternity leave (§ 2c BEEG). In typical cases, switching from tax class 5 to 3 with a gross income of €2,700 results in over €4,000 more in parental allowance over 12 months. After the birth, a change has no effect on the current parental allowance.
In tax class 3, the employer withholds too little (double the basic exemption amount); in tax class 5, too much. The tax office recalculates at the end of the year and bills you for the difference. Recommendation: Set aside 10–15% of the primary earner’s monthly salary. Filing a tax return is required by law for tax classes 3 and 5.
The new class takes effect the month after you submit your application. The tax office transmits it via ELStAM—your employer is automatically notified, so you don’t need to forward anything.
None. Pension income is reported directly on the income tax return, not through a payroll tax class. Anyone who works as an employee in addition to receiving a pension is assigned tax class 1 for that job (or 6 for a second employer). If your total income exceeds the basic exemption amount (€12,348), filing a tax return is mandatory.
You now know which tax bracket applies to you. taxtastic completes your tax return in just a few minutes—submitted directly via ELSTER, verified, and secure. Payment is due only upon submission.
Now you know which class is right for you. The next step: filing your tax return, which sets everything straight—and usually gets you a refund.
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