Marriage Penalty

The marriage penalty refers to a situation in which married couples end up paying more in taxes than they would as single individuals. This often happens when both partners earn relatively high incomes, pushing them into higher tax brackets and reducing available deductions or credits. Essentially, the tax system can sometimes penalize couples for combining their incomes, leading to a larger tax bill. In contrast, some couples may benefit from a marriage bonus, where their combined income results in lower taxes. The overall impact depends on individual financial circumstances and tax laws.