German Tax Classes 2026: Steuerklasse I–VI and Your Steuer-ID

By Marwan · moved to Germany in 2023 · facts verified June 2026

A few weeks after my Anmeldung, two letters showed up that nobody had warned me about: one with an 11-digit Steuer-ID, and a payslip showing a "Steuerklasse" I'd never chosen. Both sound scarier than they are. Your tax class doesn't decide how much tax you pay in the end, only how much gets taken from each monthly salary, and the rest is settled when you file your return. Here's what the six classes actually mean, the one rule that trips up families whose spouse is still back home, and how to get (or replace) your Steuer-ID without the runaround.

6 classes

Steuerklassen I–VI

11 digits

Your lifelong Steuer-ID

€12,348

Tax-free per person (2026)

Anytime

Couples can switch class

First, the Steuer-ID (your lifelong tax number)

The Steuer-ID (Steueridentifikationsnummer) is an 11-digit number that belongs to you for life. You don't apply for it. Once you complete your Anmeldung, the registration office tells the Federal Central Tax Office (BZSt), which generates your number and posts it to your registered address, usually within 2 to 4 weeks. Make sure your name is on the mailbox, because an undelivered tax ID letter is one of the most common first-month headaches.

You need it the moment you start work: your employer cannot run payroll correctly without it, and without it they may default you to class VI (the most expensive one) until you hand it over. It also unlocks health insurance sign-up, child benefit (Kindergeld) and your tax return.

Don't confuse it with the Steuernummer

The Steuer-ID is personal and permanent. The Steuernummer is a different number the local Finanzamt issues in connection with tax filing or a business, and it can change if you move. For a normal job, it's the Steuer-ID your employer wants.

Lost the letter? Before you panic, check a payslip, your annual tax assessment (Einkommensteuerbescheid) or a letter from your health insurer: the number is printed on all of them. If it's truly gone, request it again for free on the BZSt website. They re-post it to your registered address (allow a few weeks) and never give it out by phone or email.

The six tax classes, in plain terms

Your Steuerklasse is set automatically from your marital status. It decides how much income tax (Lohnsteuer) your employer holds back each month. Here's the whole system on one screen:

Class	Who it's for	What it means for your payslip
I	Single, divorced, widowed, or married with your spouse living outside the EU/EEA	Standard withholding for one person. The default for most newcomers.
II	Single parent living alone with a child you get Kindergeld for	Class I plus the single-parent relief (Entlastungsbetrag, €4,260/year). You have to apply for it.
III	Married, you are the higher earner (your spouse takes class V)	Lowest monthly withholding. Feels great on payday, but watch the year-end bill.
IV	Married, both of you earn roughly the same	The automatic class for newlyweds. Each of you taxed like a single person.
V	Married, you are the lower earner (your spouse takes class III)	Highest withholding of the couple. The small net here has real knock-on effects (see below).
VI	Anyone with a second (or third) job, on that extra job	No tax-free allowance applied at all, so the heaviest withholding. Unavoidable on a second contract.

Single and employed? You're class I and there's nothing to do. A single parent can apply for class II to get the relief built in. The interesting decisions only start once you're married, which is the next two sections.

The rule that catches families: a spouse still back home

This is the one I see Arab families get wrong constantly. You're married, so you assume you get the favourable married class III. But if your spouse is still living outside the EU/EEA, for example back in Egypt, Syria, Morocco or the Gulf while their family reunion visa is in progress, German payroll treats you as a single person. That means class I, not III, until they actually move to Germany and register here.

The logic is that class III exists to balance a couple who are both taxable in Germany. A spouse abroad isn't, so the joint benefit doesn't apply yet. If your spouse lives in another EU/EEA country, that's different: you can usually apply for class III. There's also a narrow route under § 1(3) EStG to be treated as fully taxable while your spouse is abroad, but it's paperwork-heavy and closely checked, so don't count on it without advice.

The move that gets the money back

If you spent your first months on class I while your spouse was abroad and overpaid, you usually recover it. Once they arrive and you switch to III/IV, file a joint tax return for that year. The Finanzamt recalculates as a married couple and refunds the difference. So the class I period stings monthly but is rarely lost for good.

Both married and working: III/V vs IV/IV with factor

When you marry, you both land on IV/IV by default. If you both earn similar amounts, leave it; it's the fairest split. The decision only matters when there's a real income gap, and the honest version isn't the one most blogs give you.

III / V

The higher earner (III) gets a big net salary, the lower earner (V) gets a small one. Combined monthly take-home is higher than IV/IV.

The catch: you're usually required to file a tax return, and it often ends in a back-payment (Nachzahlung), because too little was withheld across the year. Treat the extra monthly cash as a loan you may have to repay, not a raise.

IV / IV with factor (Faktorverfahren)

The Finanzamt applies a factor so each of you is withheld closer to your real share of the joint tax. Fairer month to month, and far smaller surprises at year-end.

It exists today and is what the government keeps nudging couples toward, but hardly anyone uses it because nobody explains it. For most couples with a gap, it's the saner default.

Class V quietly shrinks more than your salary

Wage-replacement benefits (parental allowance / Elterngeld, unemployment / Arbeitslosengeld, sick pay) are calculated on your net salary. The low net of class V drags those payments down too. So if the parent who'll take parental leave is on class V, switching them to class III in good time before the birth can meaningfully raise their Elterngeld. The rules look at the months before the birth, so plan it early and check the current timing requirements, don't leave it to the last month.

One more thing you'll read everywhere: that classes III and V are being abolished and merged into IV-with-factor. A reform along those lines is on the table (currently floated for 2030), but as of 2026 it is not law and III/V works exactly as described here. Don't make today's decision based on a change that hasn't passed.

How to change your tax class

It's free and more flexible than people think. Since 2020 married couples can switch as often as they need during the year, not just once. Here's the process:

Fill in the form 'Antrag auf Steuerklassenwechsel bei Ehegatten/Lebenspartnern' (download it from your Finanzamt or any state tax portal), or do the whole thing online through ELSTER, the official tax portal.

Both spouses sign it. You send it to your local Finanzamt (the one for your registered address), by post or upload.

The Finanzamt updates ELStAM, the electronic system your employer pulls your tax class from. You do not need to tell your employer anything yourself.

The new class takes effect from the first day of the month after they process it. Submit by 30 November if you want the change to count for the current year.

The bottom line nobody says out loud

Your tax class is a cash-flow setting, not your tax bill. The actual tax you owe depends on your income and the tax-free allowance, the Grundfreibetrag, which in 2026 is €12,348 per person (€24,696 for a jointly-assessed couple). That allowance is why class V and class VI withhold so much: on those classes the allowance isn't applied to that salary, so more is held back during the year.

Whatever was over-withheld comes back when you file your tax return. For most employees that return is genuinely worth doing: refunds in the four figures are common in your first full year, especially if you had moving costs, German course fees or a stretch on class I while your family was still abroad. Pick the class that fits your cash flow, then let the Steuererklärung settle the truth.

Frequently Asked Questions

What is the difference between the Steuer-ID and the Steuernummer?

The Steuer-ID (Steueridentifikationsnummer) is your personal, lifelong 11-digit number, sent to you automatically after your Anmeldung. The Steuernummer is a separate number the local Finanzamt gives you in connection with filing a tax return or running a business, and it can change if you move to another tax office. For starting a normal job, your employer needs the Steuer-ID, not the Steuernummer.

I'm married but my wife/husband still lives back home. Which tax class am I?

Class I, in almost all cases. If your spouse lives outside the EU/EEA (for example still in Egypt, Syria or the Gulf), German payroll treats you as a single person until they move here and register, so you cannot use class III yet. If your spouse lives in another EU/EEA country you can usually apply for class III. There is a narrow exception under § 1(3) EStG, but it is paperwork-heavy. Confirm your case with your Finanzamt.

Does my tax class change how much tax I pay in the end?

No. Your tax class only changes how much income tax is withheld from each monthly salary. Your actual yearly tax is calculated on your real income when you file your tax return (Steuererklärung), and any difference is refunded or charged then. The III/V combination doesn't make a couple pay less overall, it just shifts more take-home to one spouse during the year.

How often can I change my tax class?

Since 2020, married couples can change their tax class combination as often as they need to during the year, not just once. Submit the change to your Finanzamt by 30 November for it to apply in the current year. It takes effect from the start of the following month.

What happens if I lose my Steuer-ID letter?

Your Steuer-ID is printed on every payslip, on your annual tax assessment (Einkommensteuerbescheid), and on letters from your health insurer, so check those first. If you still can't find it, request it again for free through the BZSt (Federal Central Tax Office) online form. They post it to your registered address, usually within a few weeks. They will not give it out by phone or email.

Should newly married couples pick III/V or stay on IV/IV?

If both of you earn roughly the same, IV/IV (or IV/IV with factor) is usually fairer. III/V mainly makes sense when one earner is much higher and the other is low or not working, and even then it often leads to a year-end back-payment and a mandatory tax return. The factor method (IV with Faktor) splits the withholding fairly during the year and avoids most of that surprise.

Get Your Personalized Arrival Checklist

Your Steuer-ID and tax class are one step in a long sequence: Anmeldung, bank account, health insurance, residence permit. Get a personalized checklist that puts them in the right order for your country and visa type.

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Sources

The figures and requirements on this page are based on the following official sources. Rules change — always confirm with the German embassy or authority responsible for your case.

BZSt — Tax identification number (Steuer-ID) — Federal Central Tax Office, on how the Steuer-ID is issued and replaced
§ 38b EStG — Lohnsteuerklassen — the law that defines the six tax classes
§ 32a EStG — Grundfreibetrag (basic tax-free allowance) — the 2026 tax-free allowance built into the income tax schedule
Make it in Germany — Income tax and tax classes — official German government portal on the tax system

Facts and figures last verified: June 2026

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