Getting married is one of the most exciting life changes. An added bonus is that sometimes filing jointly can save you money. But for couples where both spouses earn similar incomes, marriage can actually push you into a higher tax bracket than you’d land in as two single filers. That’s the marriage tax penalty.
Key Points
- The marriage tax penalty hits hardest when both spouses earn similar incomes. Two high earners combining their income under one joint return often face a higher effective tax rate than they would filing separately as singles.
- Not every married couple pays the penalty. One-income households or couples with a large income gap frequently benefit from the marriage bonus instead.
- Some couples can reduce or eliminate the penalty with the right strategy before and during tax season.
How the Penalty Actually Works
The U.S. tax system uses progressive brackets. Single filers and married filers have separate bracket thresholds, and here’s the problem: the thresholds for married filing jointly are not simply double the single thresholds across the board.
Take the 2025 tax year, for example. The 22% bracket for single filers kicks in at $48,476. For married filing jointly, that same 22% bracket starts at $96,951. That’s almost exactly double, which sounds fair. The 32% bracket for single filers starts at $197,301. For joint filers? $394,601. Again, roughly doubled. All good so far!
The penalty shows up at the very top. The 37% bracket for single filers kicks in at $626,351. For married filing jointly, that threshold is $751,601. That’s nowhere near double. Two spouses each earning $400,000 sit comfortably in the 35% bracket as single filers. File jointly, and their combined $800,000 clears the 37% threshold. Neither crossed it alone.
For most couples, the bracket math is roughly neutral. But top earners should be mindful of this situation before they consider filing jointly.
Who Is Impacted By the Marriage Tax Penalty
Every tax season, we get newly married couples coming in excited to file jointly for the first time. Then we run the numbers, and sometimes we have to deliver news they weren’t expecting: filing separately actually saves them money. The excitement deflates a little, but they leave paying less in taxes, which is the whole point.
At JBS, we process ~7,000+ returns a year. The couples we end up having that conversation with are almost always dual-income households where both partners earn in a similar range.
The Standard Deduction Gap
In 2025, the standard deduction for single filers is $15,750. For married filing jointly, it’s $31,500. Exactly double. Sounds like a wash, and it basically is. Two single filers would each claim $15,750 anyway, totaling the same $31,500 combined. Getting married and filing jointly doesn’t hurt you here, but it doesn’t help you either.
Phase-Outs and Credits That Compound the Issue
Here’s a simple example: if you contribute to a Traditional IRA, you can deduct those contributions from your taxable income, which lowers your tax bill.
But that deduction phases out once you earn too much.
As a single filer with a workplace retirement plan, you start losing that deduction once you’re above $79,000. Let’s say two single filers each earn $70,000 per year, so they keep the deduction. That’s $140,000 of combined income still in the clear. Get married and file jointly, and the phase-out now starts at $126,000. Same two people, same two salaries, but marriage just cost them $14,000 worth of deductible income.
The Marriage Bonus
Not everyone pays more after getting married. When one spouse earns significantly more than the other, or one spouse stays home, filing jointly often produces a lower tax bill than the higher earner would pay alone as a single. The lower-earning spouse effectively pulls the combined income down into a cheaper bracket. That’s the marriage bonus.
The penalty and the bonus exist on a spectrum. A couple where one person earns $200k and the other earns $30k will probably see a bonus. A couple where both earn $400k will likely face a penalty. The closer the incomes, the bigger the exposure.
What You Can Do About It
You can’t simply choose to file as single once you’re married. But you do have options.
Married Filing Separately
Some couples assume that filing separately solves the problem. It sometimes helps, but it’s not a clean fix. Married filing separately comes with its own restrictions: you lose the ability to claim certain credits, your capital loss deduction is cut in half, and if one spouse itemizes, the other must too. Run the numbers both ways before assuming separate is better.
Our team of experts at JBS helps married couples save more at tax time. Contact us today to see what we can do for you and your partner.
Adjust Your Withholding
Many dual-income couples end up owing at tax time because both employers withhold as if each spouse is the only earner. Fill out your W-4 with the multiple jobs worksheet to account for combined income. This won’t eliminate the penalty, but it prevents the unpleasant surprise of a large balance due in April.
Maximize Pre-Tax Contributions
Contributing to a 401(k), HSA, or traditional IRA reduces your taxable income before the bracket calculation even happens. For high-earning couples, maxing out both spouses’ retirement contributions is one of the most effective ways to blunt the penalty. Every dollar pulled out of combined income before taxes is a dollar that doesn’t push you deeper into a higher bracket.
When to Talk to a Tax Professional
If you’re planning a wedding, the tax conversation is worth having before the ceremony. Timing matters. A couple married on December 31 is considered married for the entire tax year by the IRS.
Accounting professionals who handle volume see patterns that individual taxpayers simply can’t. At JBS, processing thousands of returns each year means we’ve worked through nearly every income combination imaginable. We know where the penalties cluster. If you’re ready to minimize your tax liability, contact JBS today.
Filing taxes as a married couple? JBS handles ~7,000+ returns a year and works with couples across the country. We can run your numbers both ways, flag any penalties coming your way, and put a plan together before they hit. Contact JBS today.
Note: All figures and percentages are subject to change and this article may not reflect the most recent updates; visit IRS.gov for the most current information.
