Politics · Germany · 8 hrs ago
Germany plans to abolish tax classes III and V for couples
German Finance Minister Lars Klingbeil plans to abolish tax classes III and V for married couples and registered partners.
Under the current system, couples can put the higher earner in class III and the other partner in class V, changing how tax is deducted from each person’s monthly pay.
The change would use an automatic calculation based on each partner’s income instead.
The total income tax a couple owes would not change, but the ministry says the system could make taxation fairer and encourage the lower-earning partner to work more.
Many couples who file taxes jointly might no longer need to submit a tax return.
The federal government is discussing the proposal with Germany’s states, and whether it will go ahead remains uncertain.
Finance Minister Lars Klingbeil plans to abolish tax classes III and V for married couples and registered partners.
The proposal would place couples in tax class IV with an automated factor based on their income distribution.
The Finance Ministry says the change would simplify tax filing and make taxation fairer.
The change would not alter the couple’s total income tax, but would change how tax is deducted from each partner’s pay.
Whether the plans will go ahead remains uncertain.
- Who
- Finance Minister Lars Klingbeil and the Federal Finance Ministry are advancing the proposal. It affects married couples and registered partners.
- What
- The plan would abolish tax classes III and V and use an automated factor procedure instead.
- When
- The plans were reported on November 10, 2026. No date for implementation is stated.
- Where
- Germany.
- Why
- The Finance Ministry says the change would simplify tax filing and make taxation fairer, while giving the lower-earning partner more incentive to work.
Finance Ministry
Union
Purpose
Finance Ministry
The Ministry says the reform would simplify tax filing and make taxation fairer.
Union
The Union sharply criticized the proposal under the previous coalition; its specific reasons are not stated.
Outcome
Finance Ministry
The Ministry says the change would not affect a couple’s total income tax.
Union
The Union’s view on the proposal’s effect on total tax is not stated.
The proposal was included in the coalition agreement and approved by the cabinet.
Reports said Klingbeil planned to abolish tax classes III and V, with the federal government negotiating the plans with the states.
- Current tax classes
- Couples can use class IV for both partners, or classes III and V.
- Planned system
- Class IV with an automated factor based on income distribution.
- Tax effect
- The total income tax paid by a couple would not change.
- Earlier proposal
- The traffic-light coalition included the plan in its coalition agreement and approved it in cabinet.
- Status
- The federal government is negotiating the plans with the states; whether they will proceed is uncertain.
2 sources
What people are saying
automated factor procedure