September 14, 2022

Tax Classes in Germany

In Germany, there are 6 tax classes known in German language as “Steuerklassen”, we briefly explain them here:

* Tax Class 1: A single, widowed, separated/divorced individual.

* Tax Class 2: A single parent, and living separately individual.

* Tax Class 3: A married individual (or widowed within the first year of the spouse’s death) with a significantly higher income than your partner in tax class 5.

* Tax Class 4: A married individual with both spouses earning similar income.

* Tax Class 5: A married individual with a significantly lower income than your partner in tax class 3.

* Tax Class 6: This is the tax class for second and side jobs (regardless of marital status).

There are different ways to know your tax class in Germany. One of them is the letter you receive after registering your residence in Germany for the first time. Otherwise, you will be able to see your tax class in your monthly payslip. Please note that once your family situation changes (marriage, divorce, birth of a child, etc.) you have to change your tax class accordingly.

Many websites offer online calculators to calculate your after-tax salary (the salary you get after the tax is deducted). All you need to do is to provide your gross salary (pre-tax) and the tax class you are in. Additional information might be needed to accurately calculate the after-tax salary that includes the state where you live in Germany. Please note that some other factors determine the actual net salary (the salary you will get in your bank account at the end of the working month) such as additional insurances like private health insurance. An example of a salary calculator is: https://www.arbeitnow.com/tools/salary-calculator/germany

As a final note, this article is written as general introduction to the tax classes and does not serve as a binding document for any legal matter. In case you have doubt or question, please consult a tax lawyer or a tax consultant, depending on your case.

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