How do I change the tax class?
Spouses or civil partners who are both fully taxable, not permanently separated, and receive wages can adjust their tax classes to suit their income situation. Depending on the circumstances, they can choose whether:
- Both are assigned to tax class IV, or
- A combination of tax class III and V is chosen, with the higher earner placed in tax class III.
How to apply for a change of tax class
The change of tax class or the application of the factor method is made by submitting an application to the relevant tax office. The official form “Application for change of tax class for spouses/civil partners” must be used, signed by both partners, and submitted.
- The application must be submitted to the tax office in whose district the spouses or civil partners have their residence at the time of application.
- Alternatively, the change of tax class can be made as part of an “Application for income tax reduction”, for example, in connection with the consideration of allowances.
Deadlines and regulations for the change
- A change of tax class or the choice of the factor method is possible once a year and must be applied for at the tax office by 30 November at the latest.
- Exceptions allowing an additional change:
- One partner leaves employment (e.g. due to resignation or parental leave).
- One partner resumes employment after unemployment or parental leave.
- A spouse dies.
- Permanent separation of spouses or civil partners.
Special features of choosing the factor method
If the factor method is chosen, the expected wages for the current year from the first employment must be stated. The tax office then calculates the factor to ensure a fair distribution of income tax.
What happens if a change is missed?
- The previous year's tax classes automatically remain in place if no application is made.
- An application for a change of tax class by the end of the year is not considered a change but an adjustment and does not affect the right to a one-time change in the following year.
Why is a change of tax class advisable?
A change of tax class can help optimise the tax burden over the course of the year. For example, the combination III/V can be advantageous for couples with a large income difference, while the combination IV/IV with factor method allows for a fairer distribution.
Conclusion: Changing the tax class is a flexible tool to adjust the tax burden to life circumstances. However, it is important to meet the deadlines and consider individual income situations. If in doubt, it is worth contacting the tax office or using a tax programme such as SteuerGo.
