What is it and when to act?
The Steuerklasse determines how much income tax (Lohnsteuer) your employer withholds from each payslip. This is only a prepayment — the final amount is calculated in your annual tax return. The right class improves your monthly cash flow; it doesn’t reduce your total tax liability.
🧮
Gross-to-net calculator 2026 →
See how much your tax class withholds — and what actually lands in your account.
Common mistakes
- Expecting Class II to apply automatically just because you’re a single parent. Unlike Class I, III, or IV, it isn’t assigned automatically — you need to file an Antrag auf Lohnsteuerermäßigung with the Finanzamt or via ELSTER, otherwise you stay on Class I by default.
- Not knowing that the III/V combination (or having Class VI) makes filing a tax return mandatory. Under § 46(2) no. 3a EStG, couples with this class combination must file a Steuererklärung every year — unlike most employees, for whom it’s optional.
- Overlooking the Faktorverfahren as an alternative to III/V. Under § 39f EStG, married couples can choose Class IV with an individual factor instead — monthly withholding tracks each partner’s actual share of income more closely, without the back-payment risk that comes with Class V.
- Not realizing a second job is automatically taxed under Class VI. Any second employment relationship gets Class VI with no basic allowance, so withholding is noticeably higher — though the annual tax return settles any overpayment.
🧭
Route: the annual tax return →
Mandatory on III/V and Class VI — and it reclaims the income tax withheld in excess.