Tax Class Change in Germany: Which Combination Gives You More Net Pay?

Changing Your Tax Class in Germany — When It Really Pays Off

Your tax class (Steuerklasse) is one of the biggest levers for your monthly take-home pay — yet most couples only think about it when it’s too late. The wrong combination can easily cost €200 to €400 per month in net salary. This guide covers all six tax classes, when to switch, and how to do it.

In short: Married couples in Germany can choose between combinations 3/5, 4/4, and 4/4 with factor. Since 2023, you can switch multiple times per year. The right combination can mean hundreds of euros more per month — but the annual tax liability stays the same.

The 6 Tax Classes at a Glance

Germany has six tax classes (Steuerklassen). Your tax class determines how much payroll tax (Lohnsteuer) your employer withholds each month:

• Tax class 1 — Single, divorced, widowed
• Tax class 2 — Single parents (with a relief amount of €4,260)
• Tax class 3 — Married, higher earner (partner in class 5)
• Tax class 4 — Married, similar income (both in class 4)
• Tax class 5 — Married, lower earner (partner in class 3)
• Tax class 6 — Second or third job

After getting married, both partners are automatically assigned tax class 4. But you can switch at any time.

When Should You Change Your Tax Class?

A switch is especially worthwhile in these situations:

After getting married: You’ll default to class 4/4. If one partner earns significantly more, the 3/5 combination often makes more sense.

Before having a baby: If you’ll be claiming Elterngeld (parental allowance), the receiving partner should switch to class 3 as early as possible. Elterngeld is based on net income — and class 3 means higher net pay. Plan the switch at least 7 months before maternity leave begins.

After salary changes: If the income ratio shifts (promotion, job change, part-time), a different combination may work better.

Before potential unemployment: ALG I (unemployment benefits) is also calculated based on net income. Class 3 leads to higher ALG I — but the switch must be credible, or the employment agency will recalculate.

After separation or divorce: During the separation year, the tax class stays unchanged. From January 1 after the separation, both must switch to class 1 (or 2 if you have children).

3/5 vs. 4/4 — A Real Example

Let’s see what the tax class means in concrete numbers. Take a couple with a combined gross income of €90,000: Partner A earns €60,000, Partner B earns €30,000.

Combination 3/5 (A in class 3, B in class 5)

• Partner A (class 3): approx. €3,650 net per month
• Partner B (class 5): approx. €1,500 net per month
• Total: approx. €5,150 net

Combination 4/4

• Partner A (class 4): approx. €3,250 net per month
• Partner B (class 4): approx. €1,900 net per month
• Total: approx. €5,150 net

Important: The monthly totals are similar — but the distribution is completely different. With 3/5, Partner A takes home significantly more, Partner B significantly less. At year-end, the total tax liability is the same in your tax return.

The key difference is in monthly cash flow. In class 3/5, the higher earner has roughly €400 more per month — which can matter for loan applications or covering household costs. But the partner in class 5 has to get by with much less net pay.

The Alternative: Class 4 with Faktorverfahren

The Faktorverfahren (factor method) is a compromise that many people don’t know about. Both partners stay in class 4, but the Finanzamt calculates an individual factor based on your actual income ratio.

Here’s how it works:

1. You apply for the Faktorverfahren at the Finanzamt
2. The Finanzamt calculates how much payroll tax each partner should pay — based on the real income ratio
3. The monthly withholding is distributed more fairly than with 3/5

Advantage: Neither partner is stuck with a disproportionately low net salary. And the back-payment at tax return time is smaller than with 3/5.

Disadvantage: Slightly more bureaucracy, since the factor must be reapplied for each year.

Tip: The Faktorverfahren is particularly useful when both partners earn well but not exactly the same amount. It avoids the extreme split of 3/5 and the “one size fits all” of 4/4.

How to Apply for a Tax Class Change

The switch is simpler than most people think:

1. Fill out the form — “Antrag auf Steuerklassenwechsel bei Ehegatten/Lebenspartnern” (online via ELSTER or as a paper form)
2. Both partners sign — the application must be signed by both
3. Submit to the Finanzamt — by mail, in person, or digitally via ELSTER
4. Your employer is notified automatically — the new class is transmitted through ELStAM (electronic tax deduction features)

The change takes effect from the following month after the Finanzamt receives the application. Since 2023, there is no limit on how often you can switch — the old once-per-year rule has been abolished.

Tax Class and Social Benefits

Your tax class doesn’t just affect your net salary — it also impacts:

• Elterngeld (parental allowance) — based on net income from the 12 months before birth. Class 3 = higher Elterngeld (up to €1,800 instead of e.g., €1,200 in class 5)
• ALG I (unemployment benefits) — calculated based on net salary. Class 3 leads to higher ALG I
• Krankengeld (sick pay) — also based on net income
• Kurzarbeitergeld (short-time work pay) — higher net = higher Kurzarbeitergeld

Tip: If you know you’ll be claiming Elterngeld or ALG I soon, plan the tax class change ahead. For Elterngeld, the switch should be effective at least 7 months before maternity leave begins.

Mandatory Tax Return Filing

Not every combination requires you to file a tax return:

• Class 4/4 (without factor) — no obligation (but often worth doing anyway)
• Class 3/5 — mandatory filing. You must file a tax return.
• Class 4/4 with factor — also mandatory filing

With the 3/5 combination, not enough payroll tax is typically withheld during the year. The Finanzamt balances this through the tax return — a back-payment is not unusual. Don’t be surprised by this.

How Restio Helps

With Restio, you can find the optimal tax class combination:

• Tax class comparison — the AI tax advisor simulates different combinations based on your actual income and shows the monthly net difference
• Elterngeld optimization — Restio calculates how a tax class change would affect your parental allowance
• Tax return preparation — with class 3/5, filing is mandatory. Restio helps you find all deductions and minimize back-payments
• Financial planning — ask the AI advisor how salary changes would affect your optimal tax class

Try Restio free for 14 days and find the best tax class for your situation.

Conclusion

Your tax class isn’t just a bureaucratic detail — it determines how much money you actually have available each month. Check after every major life change (marriage, baby, salary change) whether your current combination still makes sense. Since 2023, you can switch as often as you want — there’s no reason to stay in an unfavorable tax class.

Further Reading

• § 38b EStG — Tax Classes
• Federal Ministry of Finance: Payroll Tax
• ELSTER: Apply for Tax Class Change