Tax Class 1 (Steuerklasse 1)
Who belongs to this class?
Single persons who have never been married
Divorced persons
Widowed persons after the first calendar year following the year of the spouse’s death
Persons who are legally separated from their spouse
Unmarried persons who live alone in their own household
Characteristics:
Tax allowances and deductions in this class are limited; there are only a few relief options
Compared with the other tax classes, the monthly amount of tax withheld from the gross salary is relatively high
There are no specific family-related tax advantages via a spouse; benefits related to children are handled separately and are not an inherent part of Tax Class 1
Tax Class 3 (Steuerklasse 3)
Who belongs to this class?
Married couples, provided that
the other spouse is placed in Tax Class 5, or
the other spouse has no income or only a very low income
Widowed persons during the first calendar year after the year in which their spouse died
Characteristics:
The person in Tax Class 3 benefits from the highest possible basic tax allowance
The percentage of tax withheld from the salary is comparatively low
This tax class combination is used to distribute the total tax burden between the spouses as fairly as possible
In practice, this means: the partner who earns more usually chooses Tax Class 3, while the partner who earns less is placed in Tax Class 5.
Practical example:
Case 1: A single person with a gross monthly salary of 3,000 euros
In Tax Class 1: pays around 550 euros in income tax per month
Tax Class 3: not possible, because the person is not married
Case 2: A married person with a gross monthly salary of 3,000 euros, whose spouse does not work
Tax Class 1: not possible, because the person is married
In Tax Class 3: pays around 300 euros in income tax per month
Important notes:
Tax Class 3 is usually only beneficial if there is a clearly noticeable difference between the spouses’ incomes.
Anyone in Tax Class 3 is often required to submit an annual income tax return.
Changing tax classes is generally possible once per calendar year, provided that there is a change in the family or employment situation.
Editorial note:
The editorial team of the website makes every effort to provide accurate and reliable information by carrying out thorough research and consulting multiple sources. Nevertheless, mistakes may occur, and legal rules or figures may change, so some details might not always be fully confirmed. For this reason, the information in these articles should be regarded only as an initial, non-binding point of reference. For binding and up-to-date information, you should always contact the competent authorities or qualified professional advisers.
