Contributed by: Henry, FreeTaxUSA Agent, Tax Pro
Believe it or not, some married couples end up paying more tax than they would if they had stayed single. This is called a marriage tax penalty. Congress is now looking at ways to fix it.
What is the marriage tax penalty?
Imagine two people who both work and earn money. If they get married, sometimes the tax rules apply in a way that makes them owe more money to the government than they would have owed if they’d remained unmarried and filed as two single taxpayers. That's the marriage penalty.
On the flip side, some couples end up paying less tax after they marry. That's called a marriage bonus.
A government report found that in a recent year, about 37 out of 100 married couples paid a penalty for being married. On average, couples with a penalty paid about $1,820 extra.
Why does this happen?
It's impossible for the tax system to do three things at once:
- Make higher-income people pay a bigger percentage of tax.
- Make sure two families with the same total income pay the same tax, regardless of marital status.
- Make sure marriage itself never changes how much tax a couple owes.
Since the government can't do all three, some couples end up with a penalty and others get a bonus, depending on how much each person earns.
A few examples of what causes this:
- Standard deduction: This is a portion of taxable income the government lets you skip paying tax on. It usually helps married couples, especially if only one spouse works.
- Tax brackets: These are like steps—the more you earn, the higher the tax rate on each new "step" of income. For most couples, marriage doesn't change this much, but for very high earners, it can create a penalty.
- Head of household status: This is a tax status for single parents. It gives them extra tax breaks—but if two single parents marry each other, they can lose those breaks and end up paying more.
- Earned income tax credit (EITC): This is money the government gives to eligible lower-income workers, especially those with kids. But two working parents can sometimes get less money in total if their income increases by getting married instead of staying single.
- Premium tax credit: This credit helps people pay for health insurance they buy through the federal Marketplace or a state-based exchange. The amount of eligible credit can change when a couple gets married—sometimes they get more credit paid out on their behalf, and sometimes less. Getting married usually helps couples with lower incomes, especially if one spouse earns significantly more than the other. But couples who earn similar amounts at higher income levels are more likely to lose some of this credit when they get married.
- SALT deduction limit: This limits how much state and local tax you can deduct. Right now, married couples get the same limit as a single person—not double—which could cost married couples more.
Two bills in Congress trying to fix this
- Bill #1: H.R. 232 – The SALT Fairness and Marriage Penalty Elimination Act
- Rep. Mike Lawler (R-NY) introduced this bill. It would raise the limit on state and local tax deductions to $100,000 for single people and $200,000 for married couples—basically doubling it for couples, so they're not penalized for being married.
- Bill #2: H.R. 320 – The Make Marriage Great Again Act of 2025
- Rep. Greg Steube (R-FL) introduced this bill. It's a bigger fix. It would change the tax brackets so that married couples always get exactly double the income range that single people get at every level—including for the highest earners, where the penalty is currently the biggest. It would also get rid of the special tax brackets for married couples who file separately, so they would use the same tax brackets as single filers instead.
Other ideas Congress could consider
A government research report suggested other possible fixes, like:
- Letting everyone file taxes as individuals, even if they're married (like many other countries do).
- Getting rid of or changing the head of household filing status for single parents.
- Changing the EITC so married couples always receive exactly double what single people receive.
- Copying tax systems from other countries, like France or Germany, which calculate taxes based on how many people are in a household.
Why does Congress care? Marriage penalties and bonuses matter because they can change how much tax a couple owes based on their filing status. Lawmakers are looking at whether the tax system treats households consistently and whether current rules create unintended financial differences between married and unmarried taxpayers. In other words, the question is less about marriage itself and more about whether the tax code produces fair and predictable results.
What happens next?
Both bills were introduced in January 2025, but neither has become law yet. It can take a long time for a bill to pass, and many bills never do. Still, these bills show that Congress is paying attention to this issue. This is good news for married couples with kids or two working parents, who are most likely to face a penalty.
If you would like to make your voice heard as Congress considers these proposals, you may want to contact your U.S. representative and senators to express support or opposition.