Glossary

In English: Tax class

The class your employer uses to withhold wage tax: I for singles, II for single parents, III and V for married couples with unequal pay, IV for equal earners. It shapes your net pay, and your unemployment benefit is worked out from that net pay.

Legal basis

EStG §38b, SGB III §153. Checked against the statute text on 12 November 2026.

Open the simulator See Steuerklasse in action: work through a layoff case where it decides the outcome.

This page explains German employment law in general terms. It is not legal advice for your situation. If a layoff affects you, talk to an employment lawyer, your union or your Betriebsrat.