Abolishing Tax Classes 3 and 5: The Current Status in 2026

Few tax topics are searched as often as the planned abolition of tax classes 3 and 5. First, the key point: the reform is not in force — it was scheduled for 2030 and dropped from the law at the end of 2024. In 2026 tax classes 3 and 5 continue unchanged. Here is the current status and what you can already do today.

What was planned?

The government wanted to abolish the 3-and-5 combination and move all affected married couples to tax class 4 with a factor. This "Faktorverfahren" splits wage tax more fairly between partners — each pays roughly the monthly share that matches their own income.

Would the couple pay more tax?

No. This is the most important point: the reform changes nothing about a couple's total annual tax. Spouse splitting (Ehegattensplitting) stays. Only the monthly split between partners shifts — the year-end result via the tax return is the same. Someone in class 3 with a high net today would get a little less each month, while their partner in class 5 would get considerably more.

Current status in 2026

• The factor method for everyone was originally to start on 1 January 2030.
• The provision was removed in December 2024 from the Steuerfortentwicklungsgesetz.
• After the governing coalition collapsed, the plan is on hold; no new date is set.
• For 2026: tax classes 3, 4 and 5 continue unchanged.

So treat the reform as planned but stalled — not a done deal.

What you can already do today

Regardless of the reform, you can adjust your tax class yourself at any time:

1. Switch tax class: married couples can change combination several times a year — a simple request to the Finanzamt (or via ELSTER) is enough.
2. Use the factor method voluntarily: class 4 with a factor already exists on request — choose it now if you want the fairer monthly split.
3. Run the numbers: whether 3/5 or 4/4 is better depends on your income gap. Compare the options in our tax class overview and see what remains in the net comparison.

Remember: your tax class only determines monthly net pay, not the final tax bill. That is always settled with your tax return.

Frequently asked questions

Are tax classes 3 and 5 being abolished in 2026?

No. In 2026 classes 3 and 5 remain unchanged. The planned switch to the factor method was scheduled for 2030 and removed from the law at the end of 2024.

Would I pay more tax because of the reform?

No. A couple's total annual tax stays the same. Only the monthly split of wage tax between partners changes.

What is tax class 4 with a factor?

A method where each partner pays roughly the monthly tax share matching their income. It gives a fairer split and can already be requested from the Finanzamt today.

Can I switch my tax class now?

Yes. Married couples can change their combination several times a year — by request to the Finanzamt or via ELSTER.