Classification in German Tax Classes
(Steuerklasse)
We will choose the most suitable option for you from all tax brackets (1 – 6).
Tax brackets in Germany
In Germany, there are 6 tax brackets into which employees are classified according to their marital status, earnings and other criteria. We will choose the most advantageous option for you so that you can tax your income in the most advantageous bracket right from the start and avoid surcharges, which can be an unpleasant surprise.
If you work as a foreign national for a German company and are single, you will automatically be placed in tax bracket I, which is unfortunately the most disadvantageous, but you can reclaim the amount of tax withheld from your wages by processing your German tax return under certain conditions.
If you are married, you can apply for tax bracket III, which is already more advantageous than tax bracket I. However, when claiming a tax refund through tax return processing, this is only advantageous if the partner’s income is not too high.
Frequently asked questions
What does the German Steuerklasse determine?
The tax class affects the amount of wage tax withheld by the employer during the year. On its own, however, it does not determine the final annual tax liability, which is settled in the tax return. We review your situation and arrange the necessary steps in cooperation with an authorised German tax adviser.
Which tax class does an employee belong to in Germany?
The classification depends mainly on the marital status, the tax status of the spouses and the existence of another employment relationship. The specific class must be determined according to the current personal data and German rules. We will assess your situation and prepare an application for a possible change.
Can married couples change their combination of tax classes in Germany?
Spouses who meet the statutory conditions may apply to change the available combination of tax classes or use the factor method. The suitability of the choice depends on the ratio of their incomes and the expected annual tax settlement. We compare the options and help submit the application.
Will the wrong tax class affect the final tax in Germany?
Incorrect classification can lead to too high or too low payroll deductions during the year. However, the final tax is determined based on the actual annual data, often via a tax return. We will check the class and the annual settlement options.