{
  "id": 19499202,
  "title": "Germany plans to scrap tax classes III and V: What it means for you",
  "url": "https://urgent.news/2026/11/11/germany-plans-to-scrap-tax-classes-iii-and-v-what-it-means-for-you",
  "topic": "business",
  "section": "Business",
  "published": "2026-11-11T13:05:00.000Z",
  "source": {
    "name": "IamExpat Germany (All Germany News)",
    "slug": "iamexpat-germany-all-germany-news",
    "url": "https://www.iamexpat.de/expat-info/germany-news/germany-plans-scrap-tax-classes-iii-and-v-what-it-means-you"
  },
  "original_language": "en",
  "account": "German Finance Minister Lars Klingbeil (SPD) is set to overhaul the country's tax system by eliminating classes III and V by the end of 2026. According to an internal government document, the two tax classes, which are favored by married couples, will be scrapped. Class III is for individuals who earn significantly more than their partners, while class V is for the lower-earning partner. The deductions in class III are lower compared to class V. Both partners can use their respective classes to reduce their joint tax bill. A 2024 report indicated that 90% of tax class V users are women, likely due to the gender pay gap and the prevalence of part-time work and domestic responsibilities among women. If implemented, tax payments for couples would be based on their individual incomes instead, using the \"factor method\" tax class IV as the default option. Klingbeil argues that scrapping classes III and V would result in a fairer system, particularly benefiting women in part-time work. However, the reform has received both positive and negative reactions. SPD parliamentary group deputy chair Sonja Eichwede praised the \"factor method\" for ensuring that hard work pays off and simplifying the tax law. Bavarian Finance Minister Albert Füracker (CSU) criticized the proposal as \"paternalistic\" and \"ideologically driven.\" CDU/CSU parliamentary group spokesperson Fritz Güntzler maintained that the \"factor method\" could be a sensible choice but deemed scrapping classes III and V unnecessary. This debate over the tax classes' removal is not new, having been included in the previous SPD-FDP-Greens government coalition agreement, but the CDU/CSU opposed it.",
  "summary": "German Finance Minister Lars Klingbeil (SPD) plans to shake up the German tax system by scrapping classes III and V. Here’s what the change would mean for you.",
  "key_points": [
    "German Finance Minister Lars Klingbeil plans to eliminate tax classes III and V by end of 2026.",
    "Class III benefits higher-earning individuals, while class V is for lower-earning partners.",
    "Critics argue the reform is paternalistic and ideologically driven."
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}