1. What does “Steuerklasse” mean?
The Steuerklasse (tax class) is an income tax category determined by a person’s family status (single, married, widowed, etc.). It directly affects how much income tax is deducted from the monthly salary.
If both spouses live together, are officially married and not legally separated, they can choose one of the following systems:
Usually assigned to the spouse who earns more.
Comes with high tax allowances.
Results in low monthly tax deductions.
Assigned to the spouse who earns less.
Offers almost no tax allowances.
Leads to high monthly tax deductions.
| Husband | Wife | |
|---|---|---|
| Salary | €4,000 | €1,500 |
| Tax class | Steuerklasse 3 | Steuerklasse 5 |
| Tax | very low tax deduction | high tax deduction |
The purpose of this combination is to reduce the couple’s overall tax burden. However, this is achieved at the expense of the spouse in tax class 5, who has to accept significantly higher monthly deductions.
This system only really makes sense if there is a large difference in income between the spouses.
If both earn roughly the same, it is usually better to choose tax class 4 / 4 or 4 / 4 with the factor method (Faktorverfahren) to distribute the tax burden more fairly.
When you file your annual tax return (Steuererklärung), the final tax is recalculated. You may have to pay additional tax or you may receive a refund.
| Item | Tax class 3 | Tax class 5 |
|---|---|---|
| Tax-free allowances | very high | very low |
| Monthly tax burden | low | high |
| Best suited for | higher-earning spouse | lower-earning spouse |
| Effect on net salary | clearly higher net income | clearly lower net income |
Lohnsteuerklasse = income tax class on wages
Ehegattensplitting = splitting of taxable income between spouses
Faktorverfahren = factor method for a fairer tax split between spouses
Steuererklärung = annual income tax return
Our editorial team does its best to provide accurate information based on careful research and multiple sources. However, errors may occur or some details may not yet be finally confirmed. Therefore, please regard the information in this text as an initial guide only and always contact the competent tax office or a professional tax adviser for binding and up-to-date information.
