Tax Classes 3/5 Abolition: 2026 Update - No Panic, Reform Comes in 2030
Auf einen Blick
Many media report about the end of tax classes 3 and 5. We clarify: nothing changes in 2026. The reform is planned for 2030.
Rumors vs. Facts: What Happens in 2026?
In recent weeks, headlines about the abolition of tax classes 3 and 5 have been piling up. Many married couples are worried: Do we need to act now? Will we have less net pay in 2026?
The clear answer is: No. For 2026, no changes to the tax class combination 3/5 are planned. The Federal Ministry of Finance has confirmed that the planned transition to the factor method (tax class 4/4 with factor) is a long-term project whose technical implementation will take until approx. 2030.
Reform Timeline
- 2020: First political discussion about abolishing tax classes III/V.
- 2022: Federal Ministry of Finance confirms: Technical implementation earliest by end of the decade.
- 2024: Legislative decision to transition to the factor method - but only once IT systems are modernized.
- 2025-2029: Transition phase. Tax classes III/V remain, voluntary switch to IV/IV with factor is possible.
- From approx. 2030: Automatic transition of all couples to tax class IV/IV with factor.
Why a Reform at All?
The current system of tax classes 3 and 5 is criticized because it disproportionately taxes the lower-earning partner (usually tax class 5). This creates wrong incentives, especially for women, to work part-time instead of full-time.
What Does the Factor Method Mean?
With the factor method, wage tax is calculated so that it corresponds as closely as possible to the actual annual tax liability. Back-payments - common with the 3/5 combination - are thus avoided. Income splitting (Ehegattensplitting) itself is preserved; only the way tax is distributed over the year changes.
Comparison Table: III/V vs. IV/IV vs. IV/IV with Factor
Example: Couple, Partner A earns 60,000 euros gross/year, Partner B earns 30,000 euros gross/year:
| Feature | III/V | IV/IV | IV/IV w. Factor |
|---|---|---|---|
| Monthly Net Partner A | approx. 3,680 € | approx. 3,280 € | approx. 3,430 € |
| Monthly Net Partner B | approx. 1,540 € | approx. 1,920 € | approx. 1,810 € |
| Total Net/Month | approx. 5,220 € | approx. 5,200 € | approx. 5,240 € |
| Back-payment/Refund | often back-payment | often refund | approx. 0 € |
| Annual Tax Burden Total | identical (splitting remains) | ||
Frequently Asked Questions (FAQ)
Do I need to switch now?
No. There is no need for action in 2026. The III/V combination will remain until presumably 2029.
Will I lose money from the reform?
No. The actual annual tax burden remains identical since income splitting is not abolished. What changes: The monthly wage tax deduction is distributed more fairly.
Recommendation for 2026
Sit back and relax. If you currently use the 3/5 combination and are satisfied, you don't need to do anything. But check whether a switch to IV/IV with factor offers advantages - especially if parental benefits, sick pay, or unemployment benefits are upcoming.
Sources: Federal Ministry of Finance FAQ, Tax Amendment Act 2024
Plan ahead: Use our Gross-Net Calculator to simulate different tax class scenarios (III/V, IV/IV, IV/IV with factor) and see the monthly differences.
Sources & References (2026)
All calculations are based on the official legal provisions for 2026. Despite careful research, no guarantee is given for correctness. This calculator does not replace professional tax advice.