6 Tax Benefits for Married Couples
Summary: Married couples can benefit from lower tax brackets, increased deductions, retirement contributions, tax shelter opportunities, estate tax exemptions and simplified filing.
When people first broach the subject of marriage, tax benefits are probably not top of mind. For many, it may not come up at all. However, the tax benefits of marriage exist, and they can have a significant impact on your financial situation as a couple.
From lower tax brackets to increased deductions, married couples filing jointly often enjoy some unique advantages. This guide will discuss six key tax benefits that you and your spouse may take advantage of, and how getting married affects your taxes in general.
1. Lower tax brackets for joint filers
One of the primary tax benefits of marriage is the potential for lower tax brackets. When couples file jointly, their combined income will often fall into a more favorable tax bracket. This is particularly beneficial for couples where one spouse earns significantly more than the other.
For example, if one spouse earns $80,000 per year while the other earns $30,000, filing jointly allows them to combine their incomes. With this, they can potentially take advantage of wider tax bracket ranges compared to filing separately. For the higher-earning spouse, income that would have been taxed at a higher single-filer rate may now fall into a lower bracket when combined with the lower-earning spouse’s income. Over time, this approach can lead to substantial tax savings.
In addition, joint filers can often qualify for multiple tax breaks and credits for married couples that may not be available to those filing separately.
The table below shows how tax brackets differ for single filers versus married couples filing jointly for the 2025 tax year1:
|
Tax Rate |
Single Filers |
Married Filing Jointly |
|
10% |
$0 – $11,925
|
$0 – $23,850
|
|
12% |
$11,926 – $48,475
|
23,851 – $96,950
|
|
22% |
$48,476 – $103,350
|
$96,951 – $206,700
|
|
24% |
$103,351 – $197,300
|
$206,701 – $394,600
|
|
32% |
$197,301 – $250,525
|
$394,601 – $501,050
|
|
35% |
$250,526 – $626,350
|
$501,051 – $751,600
|
|
37% |
$626,351 or more
|
$751,601 or more
|
2. Boost in retirement contributions
The tax benefits of marriage go beyond mere savings. When it comes to retirement, couples can make larger contributions to their Individual Retirement Accounts (IRAs). If one spouse isn’t earning, they can still contribute to an IRA based on the working spouse’s income.
For instance, if you’re a stay-at-home parent with no earned income, you typically can’t contribute to an IRA. However, if you’re married, you can take advantage of a spousal IRA.
Your working spouse can contribute up to $7,00 (or $8,000 if you’re 50 or older)2 to your IRA in 2025, in addition to their own IRA contribution. This allows non-working spouses to build retirement savings and potentially reduces the couple’s overall tax burden.
Moreover, married couples may find that they’re able to contribute to a tax-deductible IRA even if they were previously ineligible due to income limits. For 2025, married couples filing jointly (who are covered by a retirement plan at work) may take a full deduction for their IRA contribution if they make $123,000 or less, with a reduced deduction available for incomes up to $143,0002.
Additionally, married couples can benefit from increased contributions to Flexible Spending Accounts (FSAs). If both spouses have separate health insurance through their employers with access to FSAs, they can each contribute for greater tax savings.
The higher limit lets couples set aside more pre-tax dollars for qualified medical expenses. This reduces their taxable income and increases their tax savings.
3. Increased deductions and credits
Married couples filing jointly often enjoy a marriage tax deduction that significantly increases their standard deduction. Couples filing jointly can claim a standard deduction—exactly double the amount for single filers. Visit IRS.gov for details on these deductions.
This increase in the standard deduction allows married couples to substantially reduce their taxable income, potentially lowering their tax bracket and qualifying them for additional tax credits that might be inaccessible for single filers.
Some of the most popular tax credits that people may qualify for include the Child Tax Credit, the Earned Income Tax Credit and the American Opportunity Tax Credit. These credits can make a significant impact on your overall tax liability, allowing you to keep more of your money.
Here’s an overview of some popular tax credits, their maximum amounts and income limits for married couples filing jointly:
|
Tax Credit |
Maximum Amount |
Income Limit (MFJ)* |
|
Child Tax Credit |
$2,000 per child
|
$400,000
|
|
Earned Income Tax Credit |
$7,830
|
$63,398
|
|
American Opportunity Tax Credit |
$2,500 per student
|
$180,000
|
*MFJ = Married Filing Jointly. These income limits indicate when tax credits begin to decrease. Above these limits, the credit amount gradually reduces until it reaches zero at higher income levels.
4. Tax shelter opportunities for small business owners
If you or your spouse own a small business, filing jointly can provide opportunities that help reduce your overall tax liability. This tax benefit of marriage is especially important for couples where one spouse is self-employed or runs a side business that may not yet be profitable.
For instance, if you earn $80,000 from your job and your spouse’s new startup incurs a $30,000 loss, filing jointly allows you to offset your income with the business loss. This reduces your taxable income to $50,000 and potentially lowers your tax bracket and overall tax burden. Consult with a tax professional to help with calculating the losses.
This implies that the spouse with income from other sources can use business-related losses as deductions, further reducing taxable income. Also, married couples can combine their standard deductions or itemized deductions. If your spouse’s business has substantial expenses like home office costs or travel, these can be added to your personal deductions such as mortgage interest or charitable donations.
This strategy often results in a higher total deduction than if you filed separately. By leveraging these benefits as a married couple, you can often achieve greater tax efficiency and reinvest more into the business or your shared financial goals.
5. Estate tax exemptions and personal residence protection
Another tax benefit of marriage occurs at the death of one spouse. Thanks to the unlimited marital deduction, a surviving spouse can inherit the entire estate of the deceased without paying any federal estate taxes. This can be a significant tax break, especially if your combined assets exceed the federal estate tax threshold.
In 2025, the annual gift tax exclusion amount is set to increase to $19,000 per individual, up from $18,000 in 20243. This means that a married couple can jointly gift up to $38,000 to a single recipient in 2025 without triggering gift taxes. It’s important to note that this annual exclusion does not reduce the lifetime gift and estate tax exemption, which is also increasing to $13.99 million per individual in 2025.
By protecting your wealth from immediate taxation, you ensure that your family’s assets are preserved for future generations. Additionally, married couples can utilize strategies like portability, allowing the surviving spouse to use any unused portion of the estate tax exemption from their partner.
Furthermore, married couples can take advantage of the Personal Residence Exemption when selling their primary home. This exemption allows couples to exclude up to $500,000 of capital gains from the sale of their home from their taxable income. Compare this to $250,000 for single filers. This results in significant tax savings, especially for couples who have seen substantial appreciation in their home’s value over time.
To qualify for this exemption, you must have owned and used the home as your primary residence for at least two of the five years preceding the sale. This benefit can be particularly valuable for couples planning to downsize or relocate in retirement.
6. Saving on filing costs and simplified returns
One of the lesser-known tax benefits of marriage is that filing jointly can save you both time and money. Instead of paying for two separate tax returns, you need to file only one return as a couple. Additionally, joint returns typically take less time to prepare and can simplify your tax filing process.
Filing jointly also allows you to maximize deductions and avoid having to split certain tax credits. For instance, married couples filing jointly often enjoy a higher standard deduction.
However, joint filing also means you and your spouse are equally responsible for the accuracy of the return. If your spouse under reports income or makes a mistake, you could both face penalties.
It’s important to remember that while there are many tax benefits to marriage, there can also be some drawbacks. Factors like income levels, debt and health issues can all impact your tax situation. It’s wise to consult with a tax professional to understand the implications of marriage on your specific tax situation.
Building your tax strategy
The tax benefits of marriage provide numerous ways for you and your spouse to save money and help protect your financial future. From lower tax brackets to increased deductions, your marriage can create opportunities for you to optimize your tax strategy.
At Mutual of Omaha, we understand that navigating tax planning and financial decisions can feel overwhelming. That’s why we’re here to help. Whether you’re preparing for retirement, building your estate plan, or looking for ways to maximize your tax savings, we can assist you in finding the right solutions. Contact us today to learn how we can help you protect your assets and plan for a more secure financial future together.
FAQs
Q1. How does getting married affect taxes?
Getting married can affect your taxes in several ways, such as potentially lowering your tax bracket if you file jointly. You may also qualify for additional deductions and credits.
Q2. Can I still claim my spouse as a dependent if they don’t work?
No, you cannot claim your spouse as a dependent, even if they don’t work. However, filing jointly often provides more tax benefits than claiming a spouse as a dependent would. Instead of claiming your spouse as a dependent, you can take advantage of the higher standard deduction and potentially lower tax brackets available to married couples filing jointly.
Q3. How does marriage affect my ability to deduct student loan interest?
Marriage can affect your ability to deduct student loan interest in a couple of ways. First, if you file jointly, your combined income might exceed the income limits for this deduction, making you ineligible. Second, if you file separately, neither you nor your spouse can claim the student loan interest deduction, regardless of your income. It’s important to calculate your taxes both ways to determine the most beneficial approach.
Q4. Are there any tax implications if we get married mid-year?
Yes, if you get married during the tax year, the IRS considers you married for the entire year. This means you’ll need to file your taxes as married (either jointly or separately) for that entire year, even if you were single for most of it.
Q5. Is there ever an advantage for a married couple to file separately?
Yes, filing separately can be helpful if one spouse has high medical bills or deductible expenses, as it may allow for a larger deduction. It can also protect one spouse from tax issues if the other has legal or financial liabilities. However, filing separately often limits access to certain tax credits, so it’s best to weigh the pros and cons with a tax advisor.
Footnotes:
1 https://taxfoundation.org/data/all/federal/2025-tax-brackets/
2 https://www.irs.gov/newsroom/401k-limit-increases-to-23500-for-2025-ira-limit-remains-7000
3 https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025
Disclosures:
Registered Representatives offer securities through Mutual of Omaha Investor Services, Inc., Member FINRA/SIPC. Investment Advisor Representatives offer advisory services through Mutual of Omaha Investor Services, Inc.
Mutual of Omaha and its representatives do not provide tax and/or legal advice, and the information provided herein is general in nature and should not be considered tax and/or legal advice.
Not all Mutual of Omaha agents are registered representatives or financial advisors.