Skip to content
+49 (0)89 92 13 13 960Contact Us
 
Expat TaxExpat Tax
Expat Tax
German Tax Advice
  • Welcome
  • Services
  • Team
  • Testimonials
  • Contact
  • Blog
  • Responsibility
  • Welcome
  • Services
  • Team
  • Testimonials
  • Contact
  • Blog
  • Responsibility

How Does Marriage Affect Taxes in Germany for Expats?

In most cases getting married is relevant for tax purposes. Married couples can file a joint income tax return (they can also opt to file separate returns and they can exercise this option from year to year). If one spouse is on a higher level of income than the other spouse it is beneficial to file a joint tax return. This is because the partner with the higher income may be able to use up tax credits which the other partner is unable to use up as his / her income is not high enough. You can enjoy the full effect of this mechanism even if you are only married for one day during the tax year.
Your employer will apply your tax credits depending on which Tax Class (Steuerklasse) you choose.

The Tax Classes for married couples are:
Tax Class 3: Ideal for one income couples and couples with two significantly different levels of income. The partner in Tax Class 3 can enjoy the full tax credit of both partners. If one partner selects Tax Class 3, the other partner will automatically be allocated Tax Class 5. Tax Class 5 is used by the partner with no or rather low income as it comes with no tax credits.

Tax Class 4: Ideal for couples with relatively similar levels of income. Tax credits are split equally so both partners can enjoy them fully.

Tax Class 5: This Tax Class corresponds with Tax Class 3 (see above) and does not come with any tax credits. Typically used by the partner with no or rather low income.

These tax classes are relevant for your employer so they can withhold the appropriate amount of tax from your salary month by month.

Should you have opted for the wrong tax class and your employer withheld too much or too little tax from your salary throughout the year – no problem. This will be adjusted through your year end tax return and you will get the difference refunded in full or you may have to pay back a shortfall. In the end you will not lose anything by being in the wrong tax class during the year.

All of the above applies equally for same sex marriages and registered partnerships.

Contact us to find out how we can prepare an optimized German tax return for you as an expat.

Contact Us
Related posts
Are services in the private household tax-deductible?
January 15, 2019
Application for Kindergeld
January 15, 2019
How the New US Tax Plan Impacts You
January 19, 2018
Do I Need to File A Tax Return If I Stayed Less Than 183 Days As An Employee in Germany?
November 20, 2016
What is the Capital Gains Tax Rate in Germany?
October 27, 2016
How to Avoid Double Taxation
October 27, 2016
Topics
  • Deadlines(2)
  • Deductions(6)
  • Employees(10)
  • Freelancers(9)
  • General(11)
  • Getting Started(4)
  • Tax Returns(12)
Expat Tax
Copyright EXPATTAX 2020

Tel. +49 (0)89 92 13 13 960 | Fax +49 (0)89 92 13 13 961 | Contact Us
Thomas Zitzelsberger - Accountant | Spitzelbergstrasse 12b | 81476 München/Munich

Impressum - Privacy Policy - Legal Disclaimer

This website uses cookies to improve your experience. Please enable these settings to opt-in and enjoy our content. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.

Necessary Always Enabled

Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.

Non-necessary

Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.