Marriage Tax Calculator: Find Your Tax Bonus or Penalty
Calculate whether getting married will save or cost you money on taxes. Compare single versus joint filing to discover your potential marriage tax bonus or penalty.
Category: Financial
This calculator compares filing jointly as a married couple vs. filing as two singles.
Frequently Asked Questions
What is the marriage tax penalty?
The marriage tax penalty occurs when a married couple filing jointly pays more in taxes than they would if they were single and filed separately. This typically happens when both spouses earn similar, high incomes that push them into higher tax brackets when combined.
What is a marriage tax bonus?
A marriage tax bonus happens when a married couple pays less in taxes filing jointly than they would if they were single. This typically occurs when one spouse earns significantly more than the other, allowing the higher earner to benefit from lower tax brackets that apply to the couple's combined income.
Who is most likely to face a marriage tax penalty?
Couples where both spouses earn similar, high incomes are most likely to face a marriage tax penalty. When combined, their income may push them into higher tax brackets than they would face as single filers.
Who is most likely to receive a marriage tax bonus?
Couples with disparate incomes (where one spouse earns significantly more than the other) typically receive a marriage tax bonus. The higher-earning spouse benefits from the lower tax brackets that apply to the couple's combined income.
Does filing separately as a married couple avoid the marriage tax penalty?
Not necessarily. The 'Married Filing Separately' status often results in higher taxes than 'Married Filing Jointly' due to lost deductions and credits. It rarely solves the marriage tax penalty issue and typically isn't advantageous for most couples.