Tax class III (Steuerklasse 3) is used by the higher-earning spouse in the III/V combination. It grants the highest monthly net pay due to doubled tax allowances.
Who can use tax class III?
- Married employees or registered civil partners
- Partner with higher income in the III/V combination
- Widowed employees in the year of bereavement and the following year
Advantages and disadvantages
- Advantage: Lowest monthly wage tax, highest net pay
- Disadvantage: Annual tax return often results in back payments
- Disadvantage: Partner in class V has very high monthly deductions
Reform planned for 2030
The transition from classes III/V to IV/IV with factor is planned for approximately 2030. No changes in 2026.
Sources: § 38b EStG, BMF.