Tax Classes in Germany [Explained]

Рет қаралды 10,471

Күн бұрын

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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Пікірлер: 55

@giftapfel 4 ай бұрын

Please don't stop making videos, they're very helpful.

@digitalnomadstr 4 ай бұрын

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.. 😘😘

@acskck 4 ай бұрын

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

@tina-sn3zm 29 күн бұрын

I’ll probably binge watch all the content in your channel in the next few days. Thank you for making it 🫶🏻

@carlosfurukawa6133 4 ай бұрын

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.

@simplegermany 4 ай бұрын

🥳 Exactly!

@MikhailTrunovich 4 ай бұрын

Can you also discuss how having children affect taxes in Germany?

@deejah9363 4 ай бұрын

Very helpful ❤

@peterhueppi7338 4 ай бұрын

Great content. Thanks

@charlesajiboye4421 4 ай бұрын

Very insightful video. Thanks a bunch

@venexico26 4 ай бұрын

Thanks! Very helpful and enjoyable :)

@sagargangadharan 4 ай бұрын

Thank you for the wonderful explanation 🎉

@turjo119 4 ай бұрын

Just what i needed! My weekly dose of Simple Germany to keep me going.

@xidelos93 4 ай бұрын

Thanks! Muchas gracias! Dankeschön! :) Your videos are incredibly useful and well done. Thanks for the great effort!

@AndreaBorgia 4 ай бұрын

Thanks for the video, this is one area where my own research was lacking and now I have finally understood the whole mess.

@zskater1234 4 ай бұрын

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

@simplegermany 4 ай бұрын

Right?! Glad we could lift that misconception 😊 We hope you are going to settle in smootly!

@TheWuschelMUC 4 ай бұрын

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. ;-)

@Alex_explorer 4 ай бұрын

Don't forget "Smoothly" in the bginning of video :)

@lostmonkky950 4 ай бұрын

Thank you!

@Impodium 4 ай бұрын

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)

@simplegermany 4 ай бұрын

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/

@user-ps6my3vs6c 4 ай бұрын

Please make video on reforms regarding Bluecard, PR and nationality regarding integration of foreigners in Germany.

@simplegermany 4 ай бұрын

All on our list 😊

@TheWuschelMUC 4 ай бұрын

Too early, naturalization might become easier next year.

@user-ps6my3vs6c 4 ай бұрын

@@TheWuschelMUC I'm not sure. But after getting through some vedios on internet most likely it will happen in next 2-3 months?

@alexandertolikin2330 17 күн бұрын

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..

@codefields 4 ай бұрын

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.

@helloy8366 2 ай бұрын

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 ?

@gargigangotri1616 4 ай бұрын

Can you please make one for single students working freelance? How to get legal work done and what will be the tax system?

@nurimustafa3817 4 ай бұрын

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?!

@simplegermany 4 ай бұрын

Thanks for sharing your experience. This is exactly how it should go 😊

@hashishshetty 4 ай бұрын

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?

@simplegermany 4 ай бұрын

Yes, or do both to see the difference. Your bonuses sometimes get taxes higher than your wage.

@piedadrociomoraquintero6229 2 ай бұрын

Are bonuses considered as salary?

@luizfaccin Ай бұрын

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?

@simplegermany Ай бұрын

You can choose your tax class as a married couple. Nothing is mandatory. We explain the pros and cons in the video 😊

@sanjaysathishkumar1337 2 ай бұрын

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?

@simplegermany 2 ай бұрын

We can’t advise personally, feel free to use the calculator in the description or seek advice from a tax consultant.

@user-st9ld9cs8e Ай бұрын

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.

@simplegermany Ай бұрын

Contact the Finanzamt.

@smrutiranjanmohanty9869 4 ай бұрын

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?

@simplegermany 4 ай бұрын

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.

@masbah3866 4 ай бұрын

Is there any tax class 0 for the people who are not from Germany?

@wow_its_tenbux 4 ай бұрын

Would class 1 apply if only one of the two people are earning an income?

@simplegermany 4 ай бұрын

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 😊