Updated on October 15, 2024
A guide to changing tax classes in Germany
Need to change your tax class in Germany? There is no better way to ruin your day than to try and figure out anything tax related on your own. Especially, when it has to do with taxes in Germany. The system is rigid and a there’s a lot to consider to get it right. This is also true for changing tax classes. But what looks like a headache can give you significantly more money to spend each month. Luckily, the topic of tax classes and how to change them can be broken down into three easy steps. We will walk you through each of them and help you decide if the change is worth your time.
First things first. The tax class in Germany will not impact the amount of tax you pay. This depends mainly on your income. It will, however, determine how much tax you have to pay each month. In other words, your tax class impacts how much is deducted per month. The overall tax you pay over a year stays the same.
The tax classes are an integral part of the German tax system and are designed to alleviate the monthly tax burden on household income. Shortly put, the more of the household spending depends on your income, the less tax will be deducted from it. If you are in the right tax class, that is.
Actually, there are seven, not six tax classes, starting with 0. As this will not apply to most of you interested in changing their tax class, we will only mention it here.
You will find your tax class on your payslip in the left upper corner of the personal information, indicated as SKI. There you will find a number ranging from 1 to 6, or, as the tax class is given in Roman numbers, I to VI. Only if you are employed, though. Taxes for freelancers and self-employed in Germany are a different story. How do you obtain a tax class? After registration in Germany, the Finanzamt (tax office) will assign you a tax ID and a tax class. The first will be valid during your stay in Germany (not to be confused with the tax number which is issued by the local tax authorities and changes when you move to another district). The latter depends on your marital status. Let’s see the options.
The hiccups happen where the tax class automatically assigned to you doesn’t reflect your situation. So, if you are married but move to Germany without your spouse, you will be assigned tax class I. While the singles in this class are financially responsible only for themselves, you probably still have to contribute to the life of your spouse and maybe children back home with the money you earn in Germany. The monthly tax deductions in class I will be a disadvantage in this case. Luckily, if your spouse is an EU citizen and lives in the EU, German authorities will recognize the marriage and you can change your tax class to III if your wife doesn’t work or earns significantly less than you. The same is true if you are both assigned tax class IV. So how do I change my tax class in Germany?
Changing tax classes in Germany is surprisingly quick and easy.
If you want to change to the tax class combination III/V, you will need to fill out the Antrag auf Steuerklassenwechsel bei Ehengatten. You can do this online or print an empty PDF and fill it out. Unfortunately, the form is not available in English. Basically, the following lines are relevant, if you want to switch to classes III and V for you and your spouse:
Alternatively, you can fill out the form via your ELSTER account. ELSTER is an online tax office system designed by the Federal Central Tax Office to make tax-related procedures easier and faster. You have to open an account first. The program is not available in English.
If you send in the form before the end of the month, the tax office will inform your employer of the changes within the first five days of the next month and the change will be seen on your next payslip.
If you send in the form before the end of the month, the tax office will inform your employer of the changes within the first five days of the next month and the change will be seen on your next payslip.
Changing tax classes in Germany is straightforward. For most expats, it becomes an issue when they marry or if they are married, but move to Germany alone. Other reasons to request a tax class change are separation, divorce, the birth of a child with full custody or a change in employment or income. In these cases, the spouse filing the request will sign the form alone. The death of one spouse will automatically be reflected in a change of tax class. Tax classes can be changed several times even during one year according to changing circumstances.
All in all, it is not only a question of how do I change my tax class in Germany, but also of should I change my tax class in Germany. For most people, the answer to this is a clear yes. The change from tax class I or IV/IV to the combination of III/V will leave you more money to spend each month. For fun activities, that help you improve your German, maybe.
