Tax class 3/5 or 4/4: which is better for us as a married couple?

That depends on how your income is split. With similar incomes, 4/4 usually makes more sense: more even net, no tax back-payment. With a big difference, 3/5 can be better for the household cash flow. For the Elterngeld: whoever has the baby should be in class 3.

How much more Elterngeld do I get in tax class 3?

Elterngeld is 65 to 67 percent of the flat-rate net. In tax class 3, the wage tax is considerably lower than in 1 or 4. At a gross income of €40,000, the difference between tax class 1 and 3 in the assessment period can mean around €150 to €300 more Elterngeld a month. This legal effect is real, but Miravel's own Elterngeld projection doesn't currently reflect it: it calculates independently of the tax class.

When and how can I change my tax class?

Since 2024, married couples can change their tax class twice per calendar year. The application is made at the Finanzamt or submitted online through ELSTER. The new deduction applies from the month after processing. For Elterngeld planning: change at least 7 months before the expected due date.

Do I pay more tax in tax class 5 than in tax class 4?

No, not in the annual result. Tax class 5 only has a higher monthly pre-deduction. At the tax return, the actual tax due is determined based on the joint income with spousal splitting. Whatever was over-withheld in class 5 is refunded.

Changing your tax class: when does it really pay off? — Miravel

Tax class 3/5 or 4/4? Your tax class affects your monthly net pay and your Elterngeld, but not your annual tax bill. When a change makes sense, with concrete numbers.

When two people get married in Germany, a form lands in the letterbox shortly after: which tax class would you like? Most people pick something. Few understand what the choice means, especially when a child is planned.

The figures below are model calculations for sample cases with 2026 tax parameters. Your actual net income depends on your specific situation. Miravel calculates it with your own data.

What the tax class actually determines

Tax classes are wage-tax pre-deduction classes, not final tax rates. At the end of the year the Finanzamt (tax office) settles up. Married couples always pay the same total at year-end, whether they chose 3/5 or 4/4. What differs: the monthly net and the Elterngeld.

Tax class 3/5: more net for the higher earner

In the 3/5 combination, the partner in class 3 gets considerably more net. The partner in class 5 gets considerably less. Example: Person A earns €70,000 gross, Person B €40,000 gross.

Person A (tax class 3): around €4,040 net/month instead of €3,570 in class 4
Person B (tax class 5): around €1,890 net/month instead of €2,255 in class 4
Over the year you pay the same amount of tax in both variants. But the monthly net differs: with 3/5, more flows in each month, in return there's more likely a back-payment at year-end. With 4/4, the monthly split is more even. What matters is the tax return, not the pre-deduction.

Tax class 4/4: a more even split, less tax back-payment

Tax class 4 spreads the pre-deduction more evenly across both partners. With the factor method (§ 39f EStG), the spousal splitting is already taken into account in the monthly deduction. The result: barely any tax back-payment in April, and better control over your monthly cash flow.

Elterngeld: why the tax class before the birth matters

Elterngeld is calculated based on the flat-rate net pay. In tax class 3 the wage-tax deduction is lower, the flat-rate net higher, the Elterngeld higher. In class 5 it's the other way round.

Same gross pay, tax class 3 instead of 1: by law up to around €300 more Elterngeld a month is possible, as long as the Elterngeld stays below the maximum of €1,800. Note: Miravel's Elterngeld projection doesn't currently factor in this tax-class effect, it's independent of the tax class.
The new class has to have applied for at least 7 of the 12 months before the month of birth
Planning rule: change your tax class at least 7 months before the expected due date

When does a change pay off?

The most common reason for a change is the Elterngeld. Anyone planning to apply for Elterngeld should have applied for the more favourable tax class at least 7 months before the expected due date. Without children, switching to 3/5 mainly pays off when one partner earns considerably more and the household's liquidity management benefits from it.

Since 2024, married couples can change their tax class twice per calendar year. The application is made at the responsible Finanzamt or submitted through the ELSTER online portal.