The tax class (Steuerklasse) of your PhD position determines how much wage tax is deducted from each salary payment in Germany. If you understand your payslip, you can quickly tell whether tax class, social insurance and gross salary are correct. This guide explains classes I to VI and shows what appears on the payslip.
Short answer: The tax class (I to VI) determines how wage tax is deducted from your gross salary. Single people are placed in class I, and married people fall into class III, IV or V depending on their situation. Social insurance contributions do not depend on the tax class and are shown separately. Last updated: October 2026.
Key points
- The tax class controls only the wage tax deduction, not social insurance.
- The entries are stored electronically and retrieved by your employer (ELStAM).
- If you have a second paid job alongside your PhD position, it is taxed under class VI.
- Social insurance is calculated from the gross salary using the statutory contribution rates for 2026.
- For the amount of wage tax, use the income tax calculator of the Federal Ministry of Finance.
What do tax classes I to VI mean?
The Income Tax Act places employees in six tax classes (section 38b para. 1 EStG). The table summarises the cases named in the law.
| Class | Typical case under section 38b EStG | Meaning for PhD candidates |
|---|---|---|
| I | Single persons and married persons who do not meet the requirements for III or IV | Applies to single PhD candidates |
| II | As class I, with the relief amount for single parents | For single parents |
| III | Married persons whose partner is in class V, and widowed or divorced persons under certain conditions | Depends on the partner |
| IV | Married persons where both spouses are fully taxable and do not live permanently apart | Applies to both partners in class IV |
| V | Employees in class IV where the spouse is placed in class III on application | Counterpart to class III |
| VI | Second or further simultaneous employment | Relevant for a PhD position plus a side job |
Who sets the tax class, and where is it recorded?
The data is stored in the electronic wage tax deduction features (ELStAM). Your employer retrieves them for the wage tax deduction (section 39e EStG). The tax class should therefore appear on your payslip. Check it at the start of the contract and afterwards on every payslip, because incorrect data leads to wage tax that is too high or too low.
Your employer does not choose the tax class at its own discretion but takes over the stored data. If the entry is wrong, clarify it with the responsible tax office before you wait for a refund or a back payment.
What appears on the payslip?
A payslip has three parts: gross salary, tax deductions and social insurance contributions. Wage tax depends on the tax class. Social insurance depends on the earnings and the statutory contribution rates. The table shows the rates for 2026.
| Insurance | Total contribution rate 2026 | Share paid by employees | Source |
|---|---|---|---|
| Pension insurance | 18.6 percent | 9.3 percent | Contribution rate notice 2026 (in German) |
| Unemployment insurance | 2.6 percent | 1.3 percent | section 341 SGB III (in German) |
| Health insurance | 14.6 percent general rate plus the fund-specific supplementary contribution (average 2026: 2.9 percent) | 7.3 percent plus half of the supplementary contribution | section 241 SGB V (in German) |
| Long-term care insurance | 3.6 percent | 1.8 percent, childless employees pay an extra 0.6 points | Federal Ministry of Health, childless surcharge (in German) |
The supplementary contribution of the health insurance fund is paid half by employees and half by employers (section 249 SGB V). For the employee share you therefore use half of it.
Example: social insurance on 2,000 euros gross
Assumption: 2,000 euros gross per month, statutory health insurance, average supplementary contribution of 2.9 percent, no childless surcharge. We do not calculate wage tax here.
- Pension insurance: 2,000 euros x 9.3 percent = 186.00 euros.
- Unemployment insurance: 2,000 euros x 1.3 percent = 26.00 euros.
- Health insurance: 2,000 euros x 8.75 percent (7.3 percent plus half of 2.9 percent, which is 1.45 percent) = 175.00 euros.
- Long-term care insurance: 2,000 euros x 1.8 percent = 36.00 euros.
- Total employee shares: 186.00 + 26.00 + 175.00 + 36.00 = 423.00 euros per month.
You calculate wage tax with the income tax calculator of the Federal Ministry of Finance (bmf-steuerrechner.de). It takes into account the tax class, child allowances and church tax. The total above covers only the social insurance part.
Checking or changing the tax class
Single people are usually placed in class I. For married couples the classification depends on the combination of partners, and different classes can change the wage tax distribution. Whether a change makes sense for you is best clarified with the tax office or a tax advice service. Whether the class suits you over the year is only shown in your tax assessment.
How to read the payslip step by step
A payslip is easier to check if you go through it in a fixed order. This helps you spot errors early and raise them with your employer or the HR department.
- Gross salary: does it match your employment contract, including any part-time share and allowances?
- Tax class: is it stated, and does it match your marital status and any side job?
- Wage tax and any church tax: are these deductions understandable?
- Social insurance: are all four branches included, pension, unemployment, health and long-term care, with plausible shares?
- Net pay: does gross salary minus all deductions give the amount paid out?
If an item is missing, for example unemployment insurance, ask. Scholarships are often documented differently or not at all, because there is no employment relationship. More on unemployment insurance is in our guide Unemployment Benefit After Studies: Eligibility and Registration.
Frequently asked questions
Does my side job affect my tax class?
A second simultaneous employment is taxed under class VI (section 38b para. 1 no. 6 EStG). It is important that your main employer knows about it, so that the entries are correct. More on side jobs in our guide Part-Time Jobs and Taxes for Students in Germany.
Can I choose my tax class freely?
No. Classification depends on marital status and the conditions of the six numbers in section 38b EStG. Married couples can, on application, use the combination of classes III and V (section 38b no. 5 EStG). Single people have no comparable choice. In any case, check whether the current classification still applies.
What does the tax return change about the tax class?
The tax class determines the ongoing deduction. Whether too much wage tax was withheld is shown in the tax assessment. In that case the tax office refunds the difference. Our guide Tax Return for Students: How to Get Your Money Back explains the steps.
What to do next
- Check the tax class on your first payslip.
- Compare gross pay and social insurance with the example, and check wage tax with the calculator.
- Report a side job or a second employment so that class VI is applied correctly.
- Have the tax class checked again after any change in your marital status.
Related guides
- Taxes for Students: When You Pay and When You Do Not
- Tax Return for Students: How to Get Your Money Back
- PhD Funding: Position, Scholarship or Own Savings
- Is a Scholarship Taxable? Tax and Social Insurance
Sources: section 38b EStG, tax classes (in German); section 39e EStG, ELStAM (in German); section 249 SGB V (in German); section 241 SGB V (in German); section 341 SGB III (in German) (retrieved October 2026).
Last updated: October 2026. This guide is general information, not individual advice.
