Why Is Marriage Said to Offer Tax Benefits?
How German couples slash taxes by filing jointly in 2026
Neustadt/Hanover (dpa/tmn) – Why is it often said that marriage can pay off at tax time? The reason lies in the so-called income-splitting for married couples (Ehegattensplitting), which applies when spouses choose to file a joint tax return. But what exactly is income-splitting, and where does the advantage come from?
When married couples opt for joint assessment, their income tax is automatically calculated using the splitting method. According to the United Income Tax Assistance Association (VLH), this means their combined annual income is first added together and then divided by two. The tax owed is then calculated based on half of their joint income and subsequently doubled. The result is the total income tax the couple must pay.
The Advantage Lies in the Progressive Tax System
So why is this better than each partner paying their own share? Because, as the VLH explains, the total tax burden under the splitting method is usually lower. This is due to Germany's progressive tax system: the more a taxpayer earns, the higher their individual income tax rate becomes.
Income-splitting effectively distributes the couple's total earnings evenly between both partners for tax purposes. In most cases, this reduces the individual tax rate—and thus the overall tax burden.
Sometimes, the Tax Benefit Disappears
The rule of thumb is: "The higher the combined income and the greater the pay gap between partners, the more taxes the couple saves," explains tax advisor Alison Siefert of the Chamber of Tax Consultants of Lower Saxony. If both partners earn the same amount, income-splitting has no effect.
The biggest advantage comes when only one partner earns an income and the other has none, Siefert notes. With a taxable income of €60,000, the tax savings can amount to as much as €5,800, depending on the income disparity.
An Example Makes It Clear
The reason: Every taxpayer is entitled to a basic tax-free allowance, which will rise to €12,348 in 2026. Married couples benefit from a doubled allowance—even if one partner has little or no income of their own.
Here's an example: Suppose one spouse works full-time and earns €50,000 a year, while the other works part-time and earns €10,000. If they had filed separately in 2025, the lower earner would have paid no income tax that year, while the higher earner would have owed €10,691. But by filing jointly, their combined tax bill would drop to just €8,606—a savings of €2,085, according to calculations by the consumer advice portal Finanztip.
Read also:
- Federal Funding Supports Increase in Family Medicine Residency Program, Focusing on Rural Health Developments
- Potential Role of DHA in Shielding the Brain from Saturated Fats?
- Alternative Gentle Retinoid: Exploring Bakuchiol Salicylate for Sensitive Skin
- Hanoi initiates a trial program for rabies control, along with efforts to facilitate the transition from the dog and cat meat trade industry.
