Germany's €25B marriage tax break mostly aids dual-earner families with kids
Germany's income-splitting system for married couples saves taxpayers around €25 billion each year. The largest share of these savings goes to families with children, particularly those still in education or training. However, the way benefits are distributed varies widely across different household types.
Nearly two-thirds of the tax savings—about 63%—go to households where both spouses earn an income. These dual-earner families gain the most from the current system. Another 37% of the benefit supports single-earner households, where only one partner works.
Parents with 'tax-relevant children'—minors or those still in education—receive roughly 90% of the total savings. This group includes families with children under 18 or those in training. The remaining 10% of savings goes to married couples without children, with 9% benefiting childless pairs. Some tax relief also extends to parents whose children are adults and have finished their education. However, this group receives a much smaller portion of the overall savings.
Any changes to the income-splitting system would have the biggest impact on single-earner families. Currently, the largest financial advantages go to dual-earner households and parents with dependent children. The system's structure means reforms could shift benefits significantly between these groups.
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