North SPD Calls for Reform of Married Couples' Tax Allowance - Germany's SPD Proposes Overhauling Marriage Tax to Boost Gender Equality
Schleswig-Holstein’s SPD parliamentary group is pushing for major changes to Germany’s tax system for married couples. The party wants to replace the long-standing Ehegattensplitting model with a new Familiensplitting approach. According to the SPD, the current rules no longer reflect modern family structures and unfairly penalise working women.
The existing joint spousal taxation system was introduced in 1958. At the time, it mirrored traditional gender roles, assuming the husband worked while the wife stayed home. Today, the SPD argues, this model creates the wrong incentives for families and equality.
The party’s proposal would shift the focus to children rather than marital status. Under the new plan, each child would reduce the family’s tax burden, regardless of whether parents are married. Single parents would also benefit from the change. Beate Raudies, the SPD’s financial policy spokesperson, has criticised the current system for rewarding large income gaps between spouses. It favours households where one partner earns significantly more, often discouraging women from working. The reform aims to integrate family benefits more effectively into the tax system, easing pressure on low- and middle-income families. The SPD’s motion will be debated in the state parliament at the end of February. If passed, the regional government would be urged to push for the change at the federal level.
The reform would treat all children equally under the tax system, removing advantages tied to marriage. By reducing tax burdens for each additional child, the SPD hopes to make the system fairer for all families. The debate in late February will determine whether the proposal moves forward.
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