Living and working in Germany means adapting to a tax system with many new rules, percentages and concepts.
In this guide we explain how taxes work, what your tax class means, how much you get deducted each month y how to read your payslip with practical examples.
Table of contents
1. Which tax class (Steuerklasse) do I qualify for?
When you start working in Germany, your employer automatically assigns you (often you are also asked which one you are entitled to) a Steuerklasse (tax class) according to your situation. At the end of this point we leave you a clear example if you have a W&H visa.
| Tax Class | Situation | Main features |
|---|---|---|
| I | Single, divorced, widowed, widower without children | Standard retention. No special benefits (Normally used for W&H Visa). |
| II | Single parents with children | Including additional deduction (Entlastungsbetrag) (not applicable for W&H Visa). |
| III | Married, spouse earns more | Low retention, ideal if one member earns much more (Not applicable for W&H Visa). |
| IV | Married with similar income | Balanced retention. Option "IV with Factor" fine tuning (Not applicable for W&H Visa). |
| V | Married, spouse earns less | High withholding. Supplements spouse with Class III.(Does not apply to W&H Visa). |
| VI | Second job | Maximum retention, without Freibeträge (used for W&H Visa if you have 2 jobs). |
In addition, each one is explained with examples:
Class I - Single, divorced or widowed without children
Advantages / disadvantages:
- This is the standard class.
- There are no additional benefits or family deductions.
- Ideal if you live alone and have no children.
Example:
Laura works in Berlin and earns €3,000 gross per month. Her average retention (2025) is around 27-30 %, so she receives around €2,160 net.
If you come alone with a Work and Holiday visa, you are in Class I, unless you are married or have children registered in Germany.
Class II - Single parents
Advantages / disadvantages:
- Includes additional tax relief
- Retention is lower than Class I.
- No joint declaration required
Example:
Carlos, a single father with one child, earns 3.000 € gross. Thanks to the Entlastungsbetrag (single-parent tax credit), his net amount rises by some 70-100 € more than in Class I.
👉 For single persons with at least one child living with them and receiving child benefit (child allowance).Kindergeld).
Class III - Married, spouse earns much less or does not work
Advantages / disadvantages:
- Ideal when one spouse has the majority of the income.
- A joint annual declaration is compulsory, as there may be adjustments to be paid.
Example:
Maria wins 5.000 € grossits partner 1.500 €.
Maria chooses Class IIIits partner Class V.
Maria pays less tax each month and receives 3.750 € netwhile his partner receives only 1.100 € net.
At the end of the year, when filing a joint tax return, the tax balances out.
👉 Intended for married couples where one spouse has a high income and the other has little or no income (the other spouse must be in Class V).
Class IV - Married with similar income
Advantages / disadvantages:
- Balanced and simple.
- It avoids large differences in salaries.
- Without factoring, there may be small returns or adjustments.
Example:
Sofia and Daniel win 3.000 each.
Both in Class IV pay balanced taxes.
If they use the "Factorverfahren (with factor)"The system automatically adjusts the monthly withholding according to the combined income, reducing refunds or extra payments at the end of the year.
👉 Intended for married couples where both earn approximately the same.
Class V - Married, lower-income spouse
Advantages / disadvantages:
- Very high retention rates.
- Convenient if your partner earns significantly more.
- Sometimes it generates refunds or additional payments after the declaration.
Example:
Ana wins 2.000 € gross and your partner has Class III with 4.000 € gross.
Ana will see a high retention (net approx. 1.420 €).
The Class III partner earns more liquidity, but declaring together balances the total.
Intended for married couples where the other spouse has Class III.
Class VI - Second jobs or multiple jobs
Advantages / disadvantages:
- Maximum retention (without Freibeträge).
- Recommended only if the second job is temporary or part-time.
Intended for workers with more than one job subject to retention (The main job keeps your normal class, but secondary jobs automatically move to Class VI).
TIP! --> Example for Work&Holiday Visa holders:
❗️Si you have a full-time job y other part-time:
Sofia has a WHV visa and works:
- In a full time restaurant (2.000 € gross)
- In a cafeteria at weekends (+600 € gross)
👉 In the main job (€2,000) you have Class Icharges about 1.540 € net.
👉 In the second (600 €) you are charged with Class VIcharges only about 400-430 € net.
Although he is heavily discounted in the second job, can recover part of it in the annual declarationThe system recalculates what you should actually pay when you add up the total income.
❗️Si you have a full-time job y a Minijob (up to 538 € per month):
The Minijobs are an important exception.
They are not considered as "second jobs" for normal tax purposes, provided that they remain within the limit.
Example:
Tomás works in a logistics company (Class I, €2,000 gross → €1,540 net).
In addition, she does a mini-job in a cafeteria for 520 €.
👉 Cobra the Minijob completewithout discounts.
⚠️ But if the Minijob exceeds the monthly limit or has a contract for more than one year, it could become a "Midijob", with partial contributions.
❗️Si both jobs are normal jobs (no Minijob)
- Then the second one automatically becomes Steuerklasse VI.
- The employer will ask for your Steuer-ID and confirm your tax class when registering the contract.
- You cannot choose which one carries Class I - it is defined according to which one your employer registers first as "Hauptarbeitgeber" (main employer).
💡 Tip: make sure that your main job (where you earn the most money) is the one that is recorded with Class Iso that you don't get deducted more each month.
2. How much tax do I get deducted in Germany?
Income tax in Germany is progressivethe initial rate is 14% (from the threshold of the Grundfreibetrag) and the top rate is 42% (above certain incomes), with a maximum of 45% for very high salaries. What will be deducted depends on the gross amount, deductions and tax class.
By 2025 of that total, it corresponds to (overall values):
Concept | Total (%) | Part employee | Employer's side |
|---|---|---|---|
| Pension (Rentenversicherung): It entitles you to a pension if you contribute for at least 5 years. | 18.6% | 9.3% | 9.3% |
| Health (Krankenversicherung): Compulsory public health insurance | 14.6% + additional 2.5% average | 7.3% + 1.25% ≈ 8.55% | 7.3% + 1.25% ≈ 8.55% |
| Unemployment (Arbeitslosenversicherung): In general, you cannot charge it with WHV. | 2.6% | 1.3% | 1.3% |
| Care (Pflegeversicherung): Long-term care insurance | 3.6% | 1.8% (+0.6% if no children) | 1.8% |
| Solidarity (Solidaritätszuschlag) | 5.5% on your income tax | Variable (most do not pay) | - |
| Church tax (Kirchensteuer) | 8-9% about your income tax | Only if you belong to a church | - |
How to calculate your real net worth (recommended): uses a Brutto-Netto-Rechner reliable (e.g. in English / Gehalt.de) by entering: monthly/annual gross, Steuerklasse, Krankenkasse, children, Kirchensteuer (yes/no). This will give you the exact monthly deduction and the social contribution.
🚨Adhere to a Krankenkasse (compulsory public insurance) and get your social security number. AT THIS LINK(even if you don't have an employment contract yet!)
We explain everything to you, step by step and without you having to pay anything extra🚨
3. Indicative table: gross vs. net salaries
Assumptions: single worker with no children, no church tax, average public insurance and standard contract.
The values are estimatesbut very realistic for 2025 according to the tables in the Bundesministerium der Finanzen.
| Gross monthly salary (€) | Class I (main work) | Class VI (second paper) | Estimated difference (€) |
|---|---|---|---|
| 1.000 € | ≈ 830 € net | ≈ 700 € net | -130 € |
| 1.500 € | ≈ €1,200 net | ≈ 1.000 € net | -200 € |
| 2.000 € | ≈ €1,540 net | ≈ €1.250 net | -290 € |
| 2.500 € | ≈ €1,870 net | ≈ €1,530 net | -340 € |
| 3.000 € | ≈ €2,160 net | ≈ €1,760 net | -400 € |
| 3.500 € | ≈ €2,430 net | ≈ €2,020 net | -410 € |
Example:
Lucia works in a hostel (main job, Class I) earning 1.800 € grossand in addition in a bar 2 nights per week (Class VI) earning 700 € gross.
| Employment | Tax class | Gross (€) | Net (€) | Retention (%) |
|---|---|---|---|---|
| Hostel | Class I | 1.800 | 1.380 | ~23 % |
| Bar | Class VI | 700 | 530 | ~24 % |
| Monthly total | - | 2.500 | 1.910 | - |
👉 When making the annual tax return, if your total income was low (e.g. < 11.604 € per year), the Finanzamt refunds part of the Class VI withholding tax to youreducing the overall impact.
4. How to read my German payslip (Payslip)
Your payslip (Lohnabrechnung) may seem complicated at first.
Understanding them will help you to know what you are being discounted y why your take-home pay changes every month.
| 🧩 Abbreviation | 🧾 Full term (German) | 🇪🇸 Meaning in English |
|---|---|---|
| Pers.-Nr. | Personalnummer | Personal or employee number |
| StKl. | Steuerklasse | Tax class (e.g., I or VI) |
| Ident.-Nr. | Identifikationsnummer | Tax Identification Number (Steuer-ID) |
| Brutto | Bruttogehalt / Bruttolohn | Gross salary (before tax) |
| LSt | Lohnsteuer | Income tax |
| SolZ | Solidaritätszuschlag Solidaritätszuschlag | Solidarity surcharge (high salaries only) |
| KiSt | Kirchensteuer | Religious tax (8-9%, if you belong to a church) |
| RV | Rentenversicherung | Pension/retirement insurance |
| KV | Krankenversicherung | Health insurance |
| PV | Pflegeversicherung | Long-term care insurance |
| AV | Arbeitslosenversicherung Arbeitslosenversicherung | Unemployment insurance |
| SV-Anteile | Sozialversicherungsanteile | Total social contributions |
| Freibetrag | Steuerfreibetrag | Tax deduction or exemption (if you have one) |
| Netto | Nettogehalt / Nettolohn | Net salary (what you receive on account) |
| Auszahlungsbetrag | - | Final amount transferred to your account |
| Betriebliche Altersvorsorge (bAV) | - | Company pension contribution (if applicable) |
| VWL | Vermögenswirksame Leistungen | Employer-sponsored savings/investment |
| Urlaubstage / Resturlaub | - | Days of holiday / days remaining |
| Kranktage | - | Sick days |
| Abt. | Opening | Department (of work) |
💡 Tip: check that your tax class (StKl.) is correct.
If "VI" appears instead of "I" and you have only one job, your employer has registered you incorrectly and you are being overpaid, you can correct this at the Finanzamt (or ask your employer to correct it).
5. Can I recover taxes if I leave Germany?
Yes! 🙌
As a temporary worker, you can claim a tax refund at the end of the year (Steuererklärung), especially if you worked for only a few months.
To request a refund:
Wait to receive your Lohnsteuerbescheinigung (annual income summary) from your employer. This is usually given to you at the end of the tax year.
Present the Steuererklärung online or with the help of a tax advisor.
If your annual income was less than the minimum taxable income (≈ €11,604 in 2025), they will return you almost all taxes withheld.
- The deadline for submitting it is 31 July of the following year. For example, if you have to file for 2025, you have until 31 July 2026 to do so.
💰 Average return for Work and Holiday: between €400 y €1.200.
Conclusion
The German tax system may seem complex, but if you know your Steuerklasseyour social contributions and the meaning of your paycheck stubyou can better plan your finances and avoid overpaying.
With this guide you will understand what is deducted, how to read your payslip and how to take advantage of the legal deductions available.
We hope you enjoy sirva❤️
Other articles that may be of interest to you:
- How to join a German public insurance?--> Learn step by step how to get your krankenkasse and social security number!
- What do I need to start working in Germany? -> A simple step-by-step guide to everything you need to know to start working legally in Germany.
- Everything you need to know about the Anmeldung -> basic step-by-step guide to anmeldung
