Tax class V (Steuerklasse 5) is always combined with class III and applies to the lower-earning married partner. It has no basic allowance, resulting in significantly higher monthly deductions.
Characteristics
- No Grundfreibetrag
- No professional expenses allowance
- No special expenses allowance
- Result: higher monthly deductions than class I for the same gross salary
Year-end settlement
Class V holders almost always receive a tax refund via the annual tax return, as the deductions during the year were too high. A tax return is mandatory for class III/V couples.
Alternative: class IV/IV with factor
The factor method distributes the tax burden more fairly across the year and avoids large year-end settlements.
Sources: § 38b EStG, BMF.