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employment-taxAnswered

Why do German married tax classes change monthly cash flow far more directly than they change the couple's final annual tax burden?

FK
Felix Kramer
June 2, 2026 3,308 views 1 answer
Germanytax classesmarried couplesLohnsteuer

Couples in Germany often talk about tax class combinations as though choosing III/V or IV/IV is the same thing as choosing a permanently lower tax rate. Please explain why payroll withholding and final annual taxation are not identical here, and why the wrong tax-class story can distort household decisions.

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