Getting Familiar With The Six Different Tax Classes Applicable In Germany

Class IV

The fourth class of the German taxation system covers workers who are married and live in a common household. According to the experts from an Employer of Record Germany, such working couples need to have a similar level of employment income to be included in this category.

Class V

This class of taxation is applicable to the spouses of workers covered under class III and having a lower income.

Class VI

This class covers workers having multiple sources of income or those handling two or more jobs. This class has the highest tax rate of all the classes.

Class I

This tax class covers the workers who are either unmarried or whose spouse lives abroad. Workers, who are not residents of Germany or who have been living separately from their spouses are also covered under this class. It also includes workers whose spouses have died in the past year as well as those who have been divorced or are in a civil relationship.

Class II

The second class of the German taxation policy applies to single parents with minor children or those workers who are entitled to some form of assistance from the government.

Class III

The third class of taxation is applicable to workers who are married and living with their spouses. It also includes workers whose spouse has been dead for more than one year.