Tax Classes in Germany [Explained]
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- Опубликовано: 11 июл 2024
- 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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- Tax Class Calculator: www.nettolohn.de/rechner/steu...
- Article from das Elterngeld: www.daselterngeld.de/elternge...
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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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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.. 😘😘
Even though it is mentioned in the video that if the spouse is earning lot lower then there is a high risk of underpaying taxes with tax class 3,5. But when the spouse is not earning anything, according to the calculator it seems you are overpaying taxes and can get some money back with the tax return if you have tax class 3,5
Please don't stop making videos, they're very helpful.
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.
🥳 Exactly!
I’ll probably binge watch all the content in your channel in the next few days. Thank you for making it 🫶🏻
Thanks! Very helpful and enjoyable :)
Thank you for the wonderful explanation 🎉
Great content. Thanks
Just what i needed! My weekly dose of Simple Germany to keep me going.
Very insightful video. Thanks a bunch
Thanks! Muchas gracias! Dankeschön! :) Your videos are incredibly useful and well done. Thanks for the great effort!
Very helpful ❤
Thanks for the video, this is one area where my own research was lacking and now I have finally understood the whole mess.
Can you also discuss how having children affect taxes in Germany?
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)
Not sure what your exact question is. You can find detailed written guides on all things insurance in Germany on our website: www.simplegermany.com/insurances-in-germany/
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
Right?! Glad we could lift that misconception 😊 We hope you are going to settle in smootly!
When I studied business admin in Germany I tried to avoid taxing and tax law whenever possible. The standard textbook at Munich University "Betriebswirtschaftliche Steuerlehre" had a new edition every year and the new edition was a centimetre thicker than the old one. Many things you had to learn were obsolete after a year. So I preferred banking and Operations Research. ;-)
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.
Wow! So happy to hear!! 🤩
Don't forget "Smoothly" in the bginning of video :)
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.
Please make video on reforms regarding Bluecard, PR and nationality regarding integration of foreigners in Germany.
All on our list 😊
Too early, naturalization might become easier next year.
@@TheWuschelMUC I'm not sure. But after getting through some vedios on internet most likely it will happen in next 2-3 months?
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..
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?!
Thanks for sharing your experience. This is exactly how it should go 😊
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?
Yes, or do both to see the difference. Your bonuses sometimes get taxes higher than your wage.
Can you please make one for single students working freelance? How to get legal work done and what will be the tax system?
Thank you very much for the video! Always great content. Today my wife and I are tax class 5 and 3, because nowadays I earn more than her. Do you know if I can change to 4 and 4 anyway? Is it mandatory that we make the same amount of earnings or it is just a recommendation to optimize the tax payment?
You can choose your tax class as a married couple. Nothing is mandatory. We explain the pros and cons in the video 😊
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 ?
Thank you!
❤❤
Nice video as always.
I have one question though. My wife works in India and she pays tax there. So in which tax class will i be in?
Like we mention in the video, anyone who is married but the spouse does not live in Germany will usually get tax class 1 and be taxed as a not married person.
Many thanks for this informative video! I just have one doubt. I am currently employed but my wife is not. She is still looking for a job. Which tax class is best suited for us?
We can’t advise personally, feel free to use the calculator in the description or seek advice from a tax consultant.
Are bonuses considered as salary?
Hello
How can I change my tax class from 6 to 1 if i left my second job which was in tax class 1 before? Now I want to put the other job in tax class 1.
Contact the Finanzamt.
Would class 1 apply if only one of the two people are earning an income?
No - class 1 is for singles only. If you are married, you need to be either 4/4 or 3/5. Please rewatch the video to understand which variation would be better for you 😊
Hi, If I work in Germany and my spouse works in another country (India), to which tax class do we belong?
As we say in the video, tax class 1.
Sounds easier than the Danish system.
Is there any tax class 0 for the people who are not from Germany?
Excellent video!!! please Could you also do for singles!! Please
No need! You don’t have anything to think about as you can only have tax class 1.
How much would be the netto, if both husband and wife earn the same income. For example 2500 euro pro Monat. thank you for hard work 😊🎉
You can use an online calculator such as this: www.arbeitnow.com/tools/salary-calculator/germany