Which tax class should married expats choose in Germany?

Short answer: Married expats in Germany usually choose between tax class 4/4, tax class 3/5 or tax class 4 with factor. The best option depends mainly on how much each spouse earns. Tax class 4/4 is often suitable when both partners earn a similar income, while tax class 3/5 can make sense if one spouse earns significantly more or one spouse has no income.

In Germany, your tax class affects how much wage tax is deducted from your monthly salary and therefore how much net salary you receive each month. It does not automatically reduce your final annual tax bill. A lower monthly deduction can feel like a tax saving, but the final balance is calculated through your German tax return. If you want to understand the wider salary context, read our guide on average salary in Germany and what expats really take home.

For married couples in Germany, the most common options are:

• Tax class 4/4: often suitable when both spouses earn a similar income.
• Tax class 3/5: often used when one spouse earns much more or one spouse does not work.
• Tax class 4 with factor: useful when both spouses work and want a more accurate monthly tax deduction.

Tax class 3 and 5 in Germany can increase the monthly net salary for the higher-earning spouse, but it can also lead to a tax back payment if too little tax was withheld during the year. That is why married expats should not choose a German tax class only based on the highest monthly take-home pay.

If one spouse lives abroad, has foreign income, recently moved to Germany, receives parental allowance or does not work, the right tax class can become more complex. In these cases, it is worth checking the expected annual tax position before changing your tax class through the Finanzamt or ELSTER.

At Finance for Expats, we help married expats understand how tax class Germany rules affect monthly net salary, payroll tax and the annual tax return. We can also check whether tax class 3/5, 4/4 or 4 with factor is more suitable for your situation.

If you are unsure whether your tax class means you need to file a return, read our guide: Do expats have to file a German tax return?

Key take-aways:

• Tax class Germany affects monthly salary deductions, not automatically your final annual tax.
• Tax class 4/4 is often suitable when both spouses earn similar incomes.
• Tax class 3/5 can help one-income couples, but may lead to a tax back payment.
• Tax class 4 with factor can make monthly payroll tax more accurate.
• Married expats should check their tax return obligation before changing tax class.