The “Lohnsteuerkarte” tax card was disposed at the beginning of 2013 and replaced by the “ElektronischeLohnsteuerAbzugsMerkmale” (ELStAM). ELStAM contains information whether you are married, what tax class you are in, whether you have children and whether you are paying church tax. Each employer has monthly access to this information to be able to work out your correct monthly tax as employee.
The local tax offices are responsible for changes of ELStAM. To ensure that the local tax offices has always the correct information you have to go to your local authority where you register as a resident (Kreisverwaltung,Stadtverwaltung,Gemeindeverwaltung) and inform them about any changes (i.e. wedding or birth of a child).
At the beginning of a new job you only have to inform your employer about your birth date and your tax identification number and whether it is a main or an additional job. With this information your employer can retrieve your individual ELStAM.
If you have any questions to ELStAM because data are wrong and have to be changed you have to contact your local tax office.
What is the Best Tax Class for Expats?
There are 6 different tax classes reflecting your tax status and your tax credits:
Lohnsteuerklasse 1: single individual
Lohnsteuerklasse 2: single parent
Lohnsteuerklasse 3: married individual, spouse has no income or spouse is in tax class 5 (spouses with significantly different levels of income between them are in tax class 3 and 5. The partner with the higher income is in tax class 3 and the partner with the lower income is in tax class 5).
Lohnsteuerklasse 4: married individual, both spouses are employees (both spouses are in tax class 4 if they are on more or less comparable income levels)
Lohnsteuerklasse 5: married individual, spouse is in tax class 3
Lohnsteuerklasse 6: second employment
You can work out your best option online if you go to “Lohnsteuerklassenwahl”:
www.steuer.niedersachsen.de/Service/Stklwahlscript2007.htm
