How to Change Tax Class in Germany

How to Change Tax Class in Germany: Step-by-Step Guide For Expats and Newcomers

Changing your tax class in Germany (Steuerklasse) can significantly affect how much income tax you pay every month—and it’s not something to ignore. Whether you’re recently married, divorced, had a child, or started a second job, knowing how to change tax class in Germany can help you legally reduce your tax burden and boost your monthly net income.

To change your tax class in Germany, you must either submit a paper form to your local Finanzamt (tax office) or apply online via the ELSTER portal. The online method is available mainly for married couples, while most other situations—such as becoming a single parent, starting a second job, or divorcing—require a paper application.

Both methods need supporting documents like your tax ID, proof of address, and certificates confirming the life event that qualifies you for the change.

What Is a Tax Class in Germany?

A tax class determines how much wage tax (Lohnsteuer) is withheld from your salary. There are six tax classes in Germany, and your assigned class depends on your marital status, number of children, and job situation. Choosing the right tax class can help you pay less tax each month.

When Should You Change Your Tax Class in Germany?

Foreigners in Germany should consider a tax class change if they go through major life events such as:

• Getting married or entering a civil partnership
• Getting divorced or legally separated
• Becoming a single parent
• Starting a second job
• Experiencing a significant income shift (for you or your spouse)
• Death of a spouse
• Birth of a child

These situations directly affect your tax obligations, and adjusting your tax class ensures you’re not overpaying or missing out on eligible benefits like tax relief for single parents or lower deductions for couples.

What Happens If You Don’t Change Your Tax Class?

If you don’t update your tax class after a qualifying life change, you risk:

• Overpaying taxes every month due to incorrect tax rates
• Delays or reductions in your annual tax refund
• Ineligibility for certain tax benefits, like the relief for single parents or optimized spouse deductions
• Higher monthly deductions if you’re working a second job and forget to declare it under Tax Class 6
• Legal or financial complications during your annual tax return (Steuererklärung), especially for married couples in the wrong combination

Taking action at the right time not only protects your income but also helps avoid tax complications later.

German Tax Classes Explained

Tax Class 1 (Steuerklasse I): Singles

• For single, divorced, permanently separated, or widowed individuals (after the first year)
• Standard deductions apply; no special tax benefits

Tax Class 2 (Steuerklasse II): Single Parents

• For single parents entitled to child benefits (Kindergeld)
• Must live alone with the child(ren)
• Offers an additional relief amount (Entlastungsbetrag)

Tax Class 3 (Steuerklasse III): Married, One High Earner

• Ideal when one spouse earns significantly more
• The higher earner takes Class 3; the lower takes Class 5
• Provides lowest tax rate and highest monthly net income for the high earner

Tax Class 4 (Steuerklasse IV): Married, Equal Earners

• For couples with similar income
• Balanced taxation for both partners
• Can be combined with Factor Method (Faktorverfahren) for more precise deductions

Tax Class 5 (Steuerklasse V): Married, Lower Earner

• Used alongside Tax Class 3
• Higher monthly tax deductions, but balances out in a joint annual tax return

Tax Class 6 (Steuerklasse VI): Second Job

• Applied to secondary jobs only
• Highest tax deductions, no tax-free allowance
• First job always remains under the main tax class

Documents Required to Change Tax Class in Germany

You will need to provide the following:

• Your Tax Identification Number (Steuer-ID)
• Valid ID or passport
• Anmeldung (registration certificate or proof of address)
• Marriage or divorce certificate, if applicable
• Child’s birth certificate (for Tax Class 2)
• Death certificate, in case of widowhood
• Employment contract for second job (Tax Class 6)

Where to Submit Your Tax Class Change

To change your tax class in Germany, you must submit your request to your local Finanzamt—the tax office assigned to your residential address. This is the authority responsible for managing your income tax profile, including adjustments to your Steuerklasse after life changes such as marriage, divorce, or starting a second job.

There are two official ways to submit a tax class change:

Online via ELSTER (for certain cases only)

Germany’s official digital tax portal, Mein ELSTER, allows some individuals—primarily married couples—to change their tax class online. This method is limited to specific combinations such as switching between Tax Class III/V and IV/IV, and both spouses must be registered in Germany. Not all tax class changes are supported through the online system.

Offline via Paper Application (accepted in all cases)

The traditional and most widely used method is submitting a paper application to your local Finanzamt. This route is required for all other scenarios not supported by the ELSTER portal, including when applying for Tax Class II (single parent), Tax Class VI (second job), or if your spouse lives abroad. Paper applications can be submitted by post or in person.

Your local Finanzamt is determined by your current registered address (Anmeldung), and each office may have slight procedural differences. Always check your Finanzamt’s official website for the correct forms and any location-specific instructions.

How to Change Tax Class in Germany Online via ELSTER

Changing your tax class online is possible through Mein ELSTER, the official digital tax platform in Germany. This option is available only for married couples or registered civil partners who are both registered in Germany. It allows switching between Tax Class III/V and Tax Class IV/IV.

❗️This method is not available for other tax situations—such as single parents applying for Tax Class II, individuals with a second job (Tax Class VI), or widowed persons. In those cases, you must apply via your local Finanzamt using the paper application process.

Step 1: Visit the ELSTER Portal

Go to www.elster.de, the official website of Germany’s tax authority. This is where all digital tax transactions, including class changes, are processed.

Step 2: Log in to Your Mein ELSTER Account

You’ll need to log in using your ELSTER credentials. If you don’t have an account, you must first register for one, which requires identity verification and may take several days.

Step 3: Navigate to the Correct Application

Once logged in, search for or navigate to the form titled “Antrag auf Steuerklassenwechsel bei Ehegatten oder Lebenspartnern” (Application for Tax Class Change for Married Couples or Partners).

Step 4: Fill Out the Online Form

Enter all required information, including:

• Your name and address
• Your spouse’s details
• Both Steueridentifikationsnummern (Tax ID numbers)
• Your preferred tax class combination (III/V or IV/IV)

Step 5: Submit the Application Electronically

After reviewing your entries, submit the form online. You’ll receive a submission confirmation on the screen or in your ELSTER message inbox.

Step 6: Wait for Confirmation from Finanzamt

Your local Finanzamt will process the request and send confirmation either:

• To your ELSTER inbox, or
• By postal mail to your registered address

The new tax class typically becomes effective from the start of the following month after approval.

How to Change Tax Class in Germany Offline (Paper Form via Finanzamt)

If your situation doesn’t qualify for online submission—such as when you’re a single parent, working a second job, or widowed—you’ll need to change your tax class by submitting a paper application to your local Finanzamt. This is the most widely used method and is accepted for all types of tax class changes.

Step 1: Download or Collect the Correct Form

Get the appropriate tax class change form from your local Finanzamt’s website or pick it up directly at the office.

• For married couples: Use the form titled “Antrag auf Steuerklassenwechsel bei Ehegatten oder Lebenspartnern”
• For all other cases (e.g. single parents or second jobs), contact your Finanzamt for the correct form

Step 2: Fill Out the Form Completely

Provide the required details, including:

• Your full name and registered address
• Your Steueridentifikationsnummer (Tax ID)
• Your spouse’s details, if applicable
• The reason for the change (e.g., marriage, divorce, birth of a child)
• Your desired new tax class

Step 3: Attach Supporting Documents

Include all necessary documentation such as:

• Valid ID or passport
• Proof of registration (Anmeldung)
• Marriage, divorce, or birth certificates (translated if needed)
• Tax ID for both spouses (if married)
• Any other relevant legal documentation

Step 4: Submit the Application to the Finanzamt

You can submit the completed form in either of the following ways:

• In person at the Finanzamt service counter
• By post to your Finanzamt’s official mailing address

Step 5: Wait for Written Confirmation

Once the Finanzamt processes your application, you will receive confirmation of your updated tax class by mail. The change typically becomes effective starting the month after approval and will reflect on your next payslip.

How Often Can You Change Your Tax Class in Germany?

In Germany, you’re generally allowed to change your tax class once per calendar year. This rule ensures stability in payroll calculations and prevents frequent tax shifts that could affect your monthly income and final tax settlement. However, there are important exceptions where a mid-year change is not only allowed but strongly recommended.

Standard Rule: One Change Per Year

Under normal circumstances, employees can apply for a tax class change only once per year. This is usually done early in the calendar year to ensure the new class applies to as many salary payments as possible. Many couples or individuals review their financial situation in January or February and submit their change request accordingly.

Exceptions: When You Can Change Mid-Year

Certain life events allow for a mid-year tax class change, meaning you don’t have to wait until the next year. These exceptions are clearly defined by the tax authorities and are intended to reflect major changes in your household or income situation.

You can request a mid-year tax class change in the following cases:

Marriage or Entering a Civil Partnership

Once married or officially partnered, you can apply immediately to switch to a more favorable tax class combination (e.g., III/V or IV/IV).

Divorce or Permanent Separation

If you legally separate or finalize a divorce, you must switch back to a single tax class (usually Class I or II, depending on custody and children).

Birth of a Child

Becoming a parent—especially a single parent—may qualify you for Tax Class II, which provides extra tax relief through the Entlastungsbetrag (relief amount for single parents).

Death of a Spouse

If your spouse passes away, you can remain in Tax Class III for the rest of the calendar year and the entire following year, after which your class will switch to Tax Class I unless your situation changes again.

Starting a Second Job

Taking on an additional job requires assigning Tax Class VI to the second employment. This can be updated at any point during the year.

Significant Income Change in the Household

If one spouse experiences a sharp drop or increase in income, married couples can apply to switch tax class combinations (e.g., from IV/IV to III/V) to optimize their tax withholding.

Important Note: One Mid-Year Change Per Event

Even when exceptions apply, you can generally only change your tax class once per qualifying event. For example, if you change to Tax Class II after becoming a single parent, you can’t change again later in the same year unless there’s a new qualifying event like a second job.

Final Tip: Plan Ahead and Monitor Your Payroll

Your tax class directly impacts how much income tax is withheld from your monthly salary. If you’re expecting a major life event—or just received confirmation of one—it’s wise to apply for a tax class change as soon as possible so it reflects in your next payslip. This can improve your monthly income and reduce the need for year-end corrections during your Steuererklärung (annual tax return).

Common Mistakes to Avoid

• Assuming the tax class changes automatically after marriage or childbirth
• Forgetting to inform the Finanzamt about a change in status
• Submitting incomplete or outdated documents
• Not checking if your local Finanzamt supports online changes
• Choosing a tax class combo (like III/V) without running simulations—this can cause tax repayment issues

Why Changing Tax Class in Germany Matters

Choosing the right tax class isn’t just a technical detail—it can affect your finances month-to-month and at year-end. For foreigners living in Germany, understanding how to change tax class in Germany is a smart move that helps avoid overpayment, ensures you’re getting all entitled benefits, and can even increase your refund.

Taking 30 minutes to adjust your Steuerklasse could save you hundreds of euros a year.

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