Are There Tax Benefits to Being Married?

A person’s marital status is a significant factor in their federal income tax liability. The U.S. tax code has provisions for married individuals that can result in either a “marriage bonus,” which is a reduction in taxes, or a “marriage penalty,” an increase in the combined tax bill. The outcome depends on a couple’s financial circumstances, including their combined income level and how they choose to file.

Filing Status Options for Married Couples

Once married, individuals have two primary filing status choices for their federal income tax return: Married Filing Jointly (MFJ) or Married Filing Separately (MFS). Your marital status for the entire tax year is determined by your status on December 31. This means even if a couple marries late in the year, they are considered married for the full tax year and cannot file as single.

The MFJ status allows a couple to combine their income, deductions, and credits onto a single tax return. This is the most common filing status for married couples because it often results in a lower tax liability.

The MFS status requires each spouse to file their own individual tax return. While less common, choosing MFS can be a strategic decision in specific situations. For instance, if one spouse has substantial medical expenses, filing separately might allow them to meet the deduction threshold, which is calculated as a percentage of adjusted gross income (AGI).

Another reason to consider MFS is to maintain separate financial liability. When a joint return is filed, both spouses are equally responsible for the accuracy of the return and the payment of the tax. Filing separately keeps each spouse’s tax liability independent, but this choice often comes at the cost of losing eligibility for several tax deductions and credits.

Impact on Tax Brackets and the Standard Deduction

A primary way marriage affects taxation is through the standard deduction and the structure of the tax brackets. For couples filing jointly, the standard deduction is exactly double the amount provided to a single filer, ensuring no deduction amount is lost by getting married. The tax brackets for MFJ filers, however, are not a simple doubling of the single filer brackets at all income levels.

While the lower tax brackets for MFJ are twice the width of the single brackets, this is not true for the highest income levels. This structural difference is the direct cause of the “marriage bonus” and “marriage penalty.”

| Tax Rate | Single Filers | Married Filing Jointly |
| :— | :— | :— |
| 10% | $0 to $11,600 | $0 to $23,200 |
| 12% | $11,601 to $47,150 | $23,201 to $94,300 |
| 22% | $47,151 to $100,525 | $94,301 to $201,050 |
| 24% | $100,526 to $191,950 | $201,051 to $383,900 |
| 32% | $191,951 to $243,725 | $383,901 to $487,450 |
| 35% | $243,726 to $609,350 | $487,451 to $731,200 |
| 37% | Over $609,350 | Over $731,200 |

A “marriage bonus” often occurs when there is a significant income disparity between spouses. For example, consider a situation where one spouse earns $150,000 and the other earns $30,000. By filing a joint return with a combined income of $180,000, they can use the wider MFJ brackets, pulling some of the higher earner’s income into a lower tax bracket and reducing their overall tax bill.

The “marriage penalty” affects couples where both spouses have similar, high incomes. For instance, if two individuals each earn $200,000, their combined income is $400,000. When they file jointly, their combined income pushes them further into higher tax brackets than if they had filed as singles, which can result in a higher combined tax liability.

Availability of Specific Tax Credits and Deductions

Marriage alters eligibility for various tax credits and deductions, often by changing the income thresholds for qualification. For couples filing jointly, many of these thresholds are higher than for single filers, making certain tax benefits more accessible. The income phase-out ranges for credits like the Earned Income Tax Credit (EITC) and the Child Tax Credit are expanded for MFJ filers, allowing more couples to qualify.

A distinct advantage for married couples is the spousal Individual Retirement Arrangement (IRA). This rule permits a working spouse to make IRA contributions on behalf of a non-working or low-earning spouse. For 2025, the IRA contribution limit is $7,000 per person, and individuals age 50 and over can make an additional $1,000 catch-up contribution. This allows the couple to maximize their retirement savings in a tax-advantaged way that would be impossible for an unmarried couple.

Education-related tax benefits also have different rules for married couples. For example, taxpayers cannot claim the American Opportunity Tax Credit if their filing status is Married Filing Separately. The deduction for student loan interest is also disallowed for taxpayers using the MFS status.

While many provisions are more generous for married couples, some limitations can be disadvantageous. A prominent example is the State and Local Tax (SALT) deduction, which is capped at $10,000 per tax return. This limit is the same for a single filer as it is for a married couple filing jointly, effectively halving the potential deduction for two high-income earners in a high-tax state.

Estate and Gift Tax Advantages

Beyond annual income taxes, marriage provides advantages related to the transfer of wealth through estate and gift taxes. The federal tax code includes the unlimited marital deduction. This allows an individual to transfer an unlimited amount of assets to their spouse at any time, as gifts or an inheritance, completely free from federal gift or estate tax.

This provides a level of flexibility in financial and estate planning that is not available to unmarried individuals. For unmarried partners, any gift exceeding the annual gift tax exclusion amount, which is $19,000 per recipient for 2025, would require filing a gift tax return and could potentially be subject to tax.

The unlimited marital deduction ensures that upon the death of one spouse, the surviving spouse can inherit the entire estate without the burden of a large tax bill. This allows the survivor to maintain their standard of living without immediate tax consequences. The estate tax, if any, is deferred until the death of the second spouse.