Prerequisites
- They receive wages from an employer in Germany.
- You have a German identification number (IdNr.).
- Your employer is compatible with the ELStAM procedure and retrieves your data electronically.
- They have no special exceptions that require a paper certificate for wage tax deduction (for example, certain employees with limited income tax liability, special allowances or regulations under double taxation agreements).
Documents required
You do not need to submit any documents to participate in the ELStAM procedure. Your employer will report the required information to the responsible authority.
If you wish to change your tax bracket:
- Form "Application for change of tax class"
- Relevant documents, such as marriage certificate, your child's birth certificate, divorce decree, death certificate of your partner.
Please note
Your tax bracket depends on your personal circumstances. It determines how much income tax is withheld from your salary each month.
Tax class I applies to you if you are single, divorced, permanently separated, or widowed. An exception exists for widowed individuals in the year of their spouse's or registered partner's death and the following year. In these two years, a more favorable tax arrangement may apply.
Tax class II is for you if you are a single parent and live in a household with at least one child. The prerequisite is that you live alone with the child and are entitled to child benefit or a tax allowance for that child. The tax relief for single parents is taken into account in this tax class.
You can choose tax class III if you are married or in a registered civil partnership and not permanently separated. This tax class is generally intended for the person with the higher income. Widowed individuals are also assigned to this tax class in the year of their spouse's or civil partner's death and in the following year, provided the requirements are met.
Tax class IV is suitable for you if you are married or in a registered civil partnership and both partners earn roughly the same amount. You can also use the so-called factor method. This calculates your income tax so that it is as close as possible to your eventual joint annual tax liability.
Tax class V complements tax class III and applies to the person with the lower income. The monthly wage tax deduction is comparatively high in this case. With this combination, filing an income tax return is generally required.
Tax class VI applies to you if you have multiple jobs or if your employer does not have valid electronic payroll tax deduction information, i.e., electronic payroll tax data. No tax allowances are taken into account in this tax class.
If you are married or in a registered civil partnership and both receive wages, you can choose between different tax bracket combinations. The combination of tax brackets IV and IV is advantageous if you both earn roughly the same amount. The combination of tax brackets III and V is suitable if one partner earns approximately 60 percent and the other approximately 40 percent of the combined income. Since the tax deduction is higher in tax bracket V, you must file an income tax return in this case.
An alternative is tax class IV with a factor. This takes into account tax relief for both partners, such as tax allowances. The factor ensures that only the amount of income tax actually due is withheld. If your income or tax allowances change, you must inform the tax office. An income tax return is also required with this option.
If one partner earns income exclusively from sources other than employment, for example, from a business, their tax bracket is irrelevant. Their incomes are later combined in their joint income tax return.
Additional regulations apply in special life situations. For example, tax class II can be applied on a pro rata basis, such as in the case of separation, marriage, or widowhood.
For employees with limited income tax liability, such as cross-border commuters or seasonal workers, only tax class I or tax class VI are generally available. Tax allowances or special tax regulations can be taken into account in these cases upon application via a paper certificate.
Deadlines
Apply for a change of tax class (choice of the factor method) no later than November 30th of the year if you wish to change your tax class or choose the factor method.
The change of tax class will take effect from the 1st of the month following the application.
