Tax class 1 (Steuerklasse 1): Who does it apply to and when is it used?

Tax class 1 (Steuerklasse I) is the basic tax class in the German tax system. It usually applies to individuals who are not legally married and generally do not have dependent children registered for a child tax allowance (Kinderfreibetrag).

Who falls under Steuerklasse 1?

The following groups are typically assigned to Steuerklasse 1:

• Single persons (Ledige) – people who have never been married.

• Divorced persons (Geschiedene) – after the marriage has been legally dissolved.

• Widowed persons (Verwitwete) – when more than one year has passed since the spouse’s death.

• Permanently separated spouses (dauernd getrennt lebende Ehepartner) – couples who live permanently apart, even if the divorce is not yet final.

• Married persons whose spouse lives abroad, where spousal income splitting (Ehegattensplitting) cannot be applied, often if the spouse resides outside the EU.

• Persons without registered dependent children, i.e. no Kinderfreibetrag is entered for them.

What does Steuerklasse 1 mean financially?

• Wage tax (Lohnsteuer) deducted from the salary is higher than in tax classes with family-related benefits.

• There is no additional child tax allowance (Kinderfreibetrag).

• Ehegattensplitting (income splitting for spouses) cannot be used; the person is taxed as a single individual.

Approximate example (for illustration):

Single person, gross salary €3,000 per month, tax class 1:

• Lohnsteuer (wage tax): approx. €330

• Krankenversicherung (health insurance): approx. €240

• Rentenversicherung (pension insurance): approx. €280

• Nettogehalt (net salary): roughly €2,000 – €2,100

(Exact amounts depend on the federal state, health insurance provider and personal situation.)

Important German terms

• Steuerklasse – tax class

• Ledig – single / not married

• Geschieden – divorced

• Verwitwet – widowed

• Dauernd getrennt lebend – permanently separated from one’s spouse

• Lohnsteuer – wage tax deducted from salary

• Kinderfreibetrag – tax allowance for a child

Disclaimer:
The editorial team aims to provide accurate and well-researched information based on multiple sources. However, errors or incomplete details cannot be completely ruled out. The information in this article is intended only as initial guidance and does not replace individual advice from the Finanzamt, a tax advisor, or other competent authorities.