RechnerpediaWhat the comparison shows, and what it does not
Your tax class (Steuerklasse) decides how much wage tax your employer withholds each month. It does not change how much income tax a couple owes for the year in the end: with joint assessment the splitting tariff always applies. If too little wage tax is withheld during the year, you pay the rest after your tax return; if too much is withheld, you get money back.
The calculator therefore shows the cash-flow difference: which combination leaves more money in your accounts each month? With very different salaries this is usually III/V, with the higher earner in class III.
After you marry, the tax office usually puts both partners into class IV automatically once the marriage is registered. You can then apply to switch to III/V.
Example
Person A earns €4,500.00 and person B €2,500.00 gross a month, both without children and without church tax. With IV/IV they keep €4,640.01 net together, with III/V €4,711.68, with V/III €4,364.92. If both earn the same, for example €3,500.00 each, IV/IV gives €4,666.50, the highest monthly net.
| Gross A / B | IV/IV | III/V | V/III |
|---|---|---|---|
| €3,000.00 / €3,000.00 | €4,108.84 | €4,034.01 | €4,034.01 |
| €4,000.00 / €2,500.00 | €4,374.42 | €4,418.76 | €4,141.34 |
| €4,500.00 / €2,000.01 | €4,347.94 | €4,488.19 | €3,973.68 |
| €5,000.00 / €3,000.00 | €5,184.51 | €5,232.51 | €4,944.34 |
| €6,000.00 / €2,500.00 | €5,410.50 | €5,585.84 | €5,047.91 |
What to keep in mind
- Tax return required: couples who choose III/V must file an income tax return. Additional payments are more common with III/V than with IV/IV.
- Benefits: parental allowance (Elterngeld), unemployment benefit and sick pay depend on each person’s net income. A more favourable tax class can increase these benefits, a less favourable one can reduce them. For parental allowance there are deadlines for switching before the birth.
- Factor method: with class IV with factor, wage tax is split more precisely according to each partner’s share of joint income. This calculator does not cover the factor method.
- Switching: you can change your tax class combination with the tax office, also online via ELSTER.
Frequently asked questions
Is III/V or IV/IV better?
With clearly different salaries III/V usually gives more monthly net pay, with similar salaries IV/IV. The annual tax is the same in both cases; the tax return evens out the difference. Work through your own salaries above.
Do we have to file a tax return with tax classes III/V?
Yes. Married couples and registered partners with the combination III/V are required to file an income tax return.
Who should be in tax class III?
Usually the partner with the higher gross salary. Class III takes both partners’ basic allowances into account, class V none.
Why does the calculator not show an annual tax saving?
Because there is none from the choice of tax class alone. The final tax depends on the couple’s joint annual income. The tax class only shifts when you pay the tax.