Number format: this calculator uses German notation throughout — a comma is the decimal separator and a dot groups thousands. “1.234,56” means one thousand two hundred thirty-four euros and fifty-six cents. The figures come from German tax law, so they are shown the way German authorities write them.
Tax class (Steuerklasse)
Assigns the wage tax deduction to your family situation and determines which allowances are already taken into account each month.
There is a full article on this term: Tax classes explained
In plain language
Your tax class only controls how much wage tax your employer withholds each month — not how much tax you actually owe. The annual tax depends solely on your annual income. So a “favourable” tax class means more net pay each month, but a smaller refund or a payment due. For couples that means the choice shifts money between the months and the tax assessment; it saves no tax.
In detail
§ 38b EStG assigns employees to six tax classes and thereby determines which allowances and standard deductions are already taken into account in the wage tax deduction. Class III contains the doubled basic allowance (anticipating the effect of joint assessment), class V accordingly none. Instead of III/V, couples may choose the factor method under § 39f EStG: the factor Y : X spreads the expected annual tax liability between them proportionally, so that the monthly deduction comes much closer to the actual liability. With III/V and with the factor method, filing an income tax return is compulsory (§ 46 (2) no. 3a EStG).
Worked example
A couple on 5.000 € and 1.500 € gross per month always owes the same tax for the year. On III/V they keep 4.577,67 € net per month — but face 1.862,08 € to pay at the end of the year. With the factor method (factor 0,880) the deviation is only 159,04 €. Same annual tax, an entirely different monthly distribution.
Legal basis: § 38b EStG · as at 2026