marriage tax penalty

Last month, I looked at my effective tax rates for the last ten years. Since I got married three years ago, I thought I’d also look at whether there’s still a marriage penalty tax.

What is this penalty? In some cases, a married couple with two incomes might pay more in income taxes than if those same two people were not married.

Looking For The Marriage Tax Penalty

My effective federal tax rate when I was single averaged 19.19 percent. For state income taxes, my average effective rate was 5.97 percent.

Since I’ve been married, our average effective federal tax rate has been 18.63 percent. For state income taxes, our average effective rate is 4.80 percent.

marriage penalty tax chart

As you can see, at least for me, there’s not a marriage penalty. In fact, there’s a bit of a marriage bonus.

The marriage penalty tax seems to apply more with people who have very high incomes. We should be so lucky to suffer that problem. We’re around the 75th percentile for income these days.

This is just a short post on my personal experience. Your experience may vary. You can check out this other post for a more complete analysis of marriage penalty tax.

(Photo courtesy of MaxPixel)

Is There Still a Marriage Penalty Tax?
Tagged on:

Leave a Reply

Your email address will not be published. Required fields are marked *