Tax Classes in Germany [Explained]

In this video, we want to help you understand what impacts your tax class, how the system works, and what changes when you are a married couple.

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⏰ Timestamps:
00:00 - Introduction
02:01 - How does the system of the tax classes work?
05:15 - Which combination makes more sense for married couples: 4/4 or 3/5?
18:43 - How do you know which tax class you have?
19:06 - How does your tax class get assigned?
20:06 - How to change your tax class as a married couple?

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[giftapfel]

Please don't stop making videos, they're very helpful.

[digitalnomadstr]

I went to Finanzamt in Stuttgart today and changed my tax class to 3 and my wife to 5… My wife is not working hence I think I get benefits with this change.. Thanks for the detailed video.. 😘😘

[tina-snzm]

I’ll probably binge watch all the content in your channel in the next few days. Thank you for making it 🫶🏻

[carlosfurukawa]

Thank you for your explanation! My take away lesson: at the end we will be taxed as the income tax happens.. changing the tax class gives more liquidity but, we will be taxed accordingly.

[turjo]

Just what i needed! My weekly dose of Simple Germany to keep me going.

[sagargangadharan]

Thank you for the wonderful explanation 🎉

[AndreaBorgia]

Thanks for the video, this is one area where my own research was lacking and now I have finally understood the whole mess.

[xidelos]

Thanks! Muchas gracias! Dankeschön! :) Your videos are incredibly useful and well done. Thanks for the great effort!

[Impodium]

Thanks for the much needed content, can you explain more in detail about the insurance that we can buy(I have seen your past videos but maybe an upgrade)

[MikhailTrunovich]

Can you also discuss how having children affect taxes in Germany?

[xxgatxx]

I got tax class 5 even though my husband stayed behind. I wonder if this is because we're both EU citizens and do not need a visa. Overall, this was such an important video, all of your channel is. Really helped me to get started in Germany. Got all bureaucracy done within 3 weeks because of preparations including settling in a house and internet. I can't appreciate this enough, you've literally changed my life for the best.

[Alex_explorer]

Don't forget "Smoothly" in the bginning of video :)

[zskater]

Wow, I wasn’t aware of that! That’s extremely helpful as me and my wife just moved to Germany and I thought being on 3-5 we would be able to avoid paying more taxes. Thanks a lot!

On a side note, why so complicated dear Germany hahaha

[alexandertolikin]

Hi, thank you for the great video!
Could you please tell how did you calculate the baseline for 3/5 tax classes? I’ve calculated my estimated tax underpay using your formula 60/40, but multiple tax bots claim that I must pay much higher sum..

[gargigangotri]

Can you please make one for single students working freelance? How to get legal work done and what will be the tax system?

[nurimustafa]

Thanks you for your videos! In my case my wife moved to Germany after some time. I was in tax class I, after she moved to Germany and our tax class became IV. But as she was not working, I expected the tax class automatically to change to 3-5, I waited for couple months, it did not happen. Eventually I applied to Finansamt to change tax class to 3-5. To change the class in Münster, I needed to fill a form which then needed to be signed by both spouses, so better to go together to Finansamt. Changing your tax class takes quite a time after the application. You dont have to inform your employer about it, they get notified somehow. Changing tax class is also possible online via Elster, but registering at Elster and activating you account takes quite a time.

Maybe you can also make a video about Elster?!

[codefields]

One thing that I find quite unfair is when Single parents that share the custody, time, costs, household with their child 50/50 with the ex partner (Wechselmodell) only one is entitled to tax class 2. Due the child that can be registered only in one main address, while in truth living 50% of the time on each house. I hope this regulation will change in the future.

[hashishshetty]

Thank you for sharing such helpful information! In some cases, one also receives Christmas bonus, vacation bonus, etc. when one's company is part of a union (e.g. IG Metall). In this case, the monthly gross income multiplied by 12 is different than the yearly gross income, as the aforementioned bonuses are usually paid at the end of the year. What should one enter in the tax class calculator in this case? Total yearly income (including bonuses) divided by 12?

[helloy]

Thank you for the video.I have a doubt, if I am doing a Full time job and a mini job alongside.In this scenario my tax class won't change to Tax Class 6. Right ? Hence my second job is a mini job.Is my understanding right ?

[psmyvsc]

Please make video on reforms regarding Bluecard, PR and nationality regarding integration of foreigners in Germany.