Plans to abolish tax classes III and V still open

Tax classes III and V should be replaced by the factor method in this legislative period, but there are still no details as to when and in what form this could happen.

Last year, around 12 million couples used the tax class combination III/V for income tax deduction. However, because the factor method (tax class IV/IV) distributes the tax burden differently and more fairly between spouses or partners, the governing coalition has decided in its coalition agreement to abolish tax classes III and V and only use the factor method for couples. To this end, the factor method is to be simplified, further developed and largely automated. However, in response to a minor question from the Bundestag, the federal government has stated that it is not yet able to provide any details on the planned abolition as discussions are still ongoing. This means that the timetable for the change is still open.