Tax class 4 vs. tax class 4 with factor in Germany
Each spouse is assigned the same tax class: 4 / 4.
Income tax (Lohnsteuer) is deducted from each salary in roughly the same amount.
This option is typically used when the incomes of both spouses are relatively similar.
The monthly tax deductions are more or less balanced, but:
When the annual tax return (Steuererklärung) is filed, this can lead to a small additional payment or a small refund, depending on the exact situation.
The basic idea is the same: both spouses are in tax class 4, and their incomes are comparable.
However, the monthly withholding tax is calculated more precisely.
A special “factor” (Faktor) is calculated on the basis of the combined income of both spouses and the expected total income tax for the year.
It distributes the total tax burden more precisely between the spouses, according to each person’s share of the income.
It reduces or almost eliminates the risk of having to pay a large additional amount of tax at the end of the year.
The result: a more realistic and stable net salary every month, closer to the final tax situation.
| Comparison | Tax class 4 | Tax class 4 with factor |
|---|---|---|
| Who is it for? | Couples with similar incomes | Couples with similar incomes |
| Type of withholding | Standard (not always very precise) | Precise, based on actual combined income |
| Distribution of the tax burden | Often almost equal | Proportional to each spouse’s income |
| Risk of later additional payment | Medium | Very low |
| Special application required? | No | Yes – must be requested from the tax office (Finanzamt) |
Couple with the following gross monthly incomes:
Husband: €3,000
Wife: €2,700
Option 1 – tax class 4 / 4 (without factor):
Both spouses are in tax class 4.
Both pay approximately the same amount of income tax, even though their incomes are slightly different.
Over the course of the year, the total tax paid may be a bit too high or too low.
This is then adjusted when filing the annual tax return, which can result in an additional payment or a refund.
Option 2 – tax class 4 with factor:
The combined income of both spouses is taken into account by the Finanzamt (tax office).
The total income tax is calculated and then distributed via the factor to each salary.
Each spouse pays exactly their fair share of tax, according to their income.
Aim: avoiding big surprises (large payments or refunds) at the end of the year.
You need to fill in the form:
“Antrag auf Steuerklassenwechsel mit Faktor” (application for change of tax class with factor).
Submit the form to your local Finanzamt (tax office).
The Finanzamt calculates the factor and sends the updated information to your employer so that the monthly withholding tax can be adjusted.
Couples who want to avoid unpleasant surprises when filing the annual tax return.
Couples with stable and relatively similar incomes.
Anyone who prefers a fair and accurate distribution of income tax throughout the year, rather than paying or receiving a large lump sum later.
The team of authors and editors of this website strives to provide accurate information, based on thorough research and consultation of multiple sources. Nevertheless, errors may occur, and some details may not always be fully confirmed or may change over time.
For this reason, please treat the information in this article as a preliminary guide only and always seek binding, up-to-date advice from the competent authorities, particularly your local Finanzamt or a qualified tax adviser.
