Married couples in Germany can choose between three combinations. The annual tax stays the same, the monthly distribution and possible back payments do not. Which choice fits when, and what changes in 2030.
In short
- IV/IV: both pay like singles, fair and without back payment, but without the splitting advantage during the year.
- III/V: the higher earner pays little, the other a lot, often a back payment, tax return mandatory.
- IV with factor: the splitting advantage is distributed fairly every month, no surprise in the assessment.
- Parental allowance, sick pay and unemployment benefit depend on net pay, so check the class before parental leave.
Three combinations, one annual tax
Married couples and registered partners are assessed jointly. The tax classes only control how much wage tax is withheld each month. At the end of the year the tax return settles the account, and the total is the same for all combinations. What differs is the distribution over the year, liquidity and whether a back payment looms.
IV/IV
Both are taxed like singles. With similar incomes that is close to the result; with unequal incomes the couple pays too much each month and gets it back with the return. Advantage: no back payment, no obligation to file. Disadvantage: the splitting advantage only arrives a year later.
III/V
The higher earner takes III and pays very little wage tax, the other takes V and pays a lot. Monthly the couple has more net than in IV/IV, but often more than it is entitled to, so the tax return is mandatory and a back payment common. III/V only makes sense if one partner earns at least 60 percent of the joint gross. A disadvantage many overlook: the partner in V has a low net, and parental allowance, sick pay and unemployment benefit are based on it.
IV with factor
The tax office calculates the splitting advantage from both salaries and distributes it via a factor across both wage taxes. Both pay monthly what they owe at year end. No back payment, fair distribution, but a mandatory return and the factor is valid for two years. Since 2026 the factor method is the recommended standard; from 2030 it replaces III/V entirely.
Switch before parental leave
Parental allowance is calculated from the net income of the twelve months before the birth. Whoever takes parental leave should switch to class III at least seven months before maternity protection starts, otherwise the old class counts. The other partner then takes V and pays more for a while, which the return recovers. The difference in parental allowance can be several hundred euros a month.
How the switch works
Online via Mein ELSTER or with the form at the tax office. A switch is possible several times a year, applies from the following month and, for III/V, needs both partners’ signatures.
Try it yourself
Gross to Net Calculator 2026Tax class, children, church tax, health insurer surcharge: what is left of your German gross salary, monthly and per year.Parental Allowance CalculatorNet income before the birth, variant, part-time: basic Elterngeld, ElterngeldPlus and partnership bonus compared.Frequently asked questions
Do I have to file a return with III/V?
Yes, filing is mandatory. With IV/IV without factor it is not, with IV and factor it is.
What happens after a separation?
In the year of separation the choice remains; from the following year class I or II applies to both.
Is marriage worthwhile for tax?
Only with unequal incomes. If both earn the same, splitting brings nothing.
Share
