Newly Married? Here's Why Your Tax Bill Might Get a Lot Bigger

Enjoy the honeymoon phase because newlyweds share more than just their lives: They also have a common stake in a tax return.

Many people expect marriage to come with a tax break, but that doesn’t always happen. Tax changes for newlyweds can actually mean they pay more to Uncle Sam. This is known as the “marriage penalty.”

Here are six surprising reasons newlyweds may see a higher bill than other taxpayers. Being aware of these changes could help you prepare yourself financially.

If you and your spouse were very high earners when you were single, combining that robust income might mean higher taxes now that you are married.

For six of the seven tax rate brackets, married couples filing jointly have an income threshold twice that of single filers. Married couples in these tax brackets do not face a marriage penalty.

For 2025 returns, the IRS says the tax rates are:

However, you will face a marriage penalty if your income puts you into the top tax rate of 37%. For the 2025 tax year, that includes incomes over $626,351, or $751,601 for married couples filing jointly.

The usual Medicare tax is 1.45% on the first $200,000 of wages. But there’s an added 0.9% tax for most people who make more than $200,000 a year.

However, the additional Medicare tax threshold is higher — and it is more than double the $200,000 threshold. If you’re married filing jointly and make more than $250,000 a year, you will pay that extra 0.9%.

If you invest for the future, Uncle Sam wants a piece of that income too. And, again, the thresholds don’t play nice for married couples.

The 3.8% net investment income tax (NIIT) dings single filers who make the lesser of the net investment income or the excess of modified adjusted gross income over $200,000 a year. For married couples filing jointly, it ticks into effect for income above $250,000.

The tax applies to interest, dividends, certain annuities, royalties, and rents.

Unpleasant tax surprises don’t rear their heads only for high-earning married couples. Lower-income couples can also suffer.

The goal of the earned income tax credit is to ease the tax burden of lower-income parents. For 2024, it maxes out at $7,830 for qualifying taxpayers who have three or more qualifying children. That will go up to $8,046 for 2025 returns.

It’s a solid chunk of change. The maximum incomes that qualify in 2024 are:

• Zero children: $18,591 for singles, $25,511 for married couples;
• 2025: $19,104 for singles, $26,214 for married couples;
• One child: $49,084 for singles, $56,004 for married couples;
  
• 2025: $50,434 for singles, $57,554 for married couples;
• Two children: $55,768 for singles, $62,688 for married couples;
• 2025: $57,310 for singles, $64,430 for married couples;
• Three children: $59,899 for singles, $66,819 for married couples;
  
• 2025: $61,555 for singles, $68,675 for married couples.

In all cases, the income cap for married couples simply isn’t much higher than it is for single filers.

Pro tip: Paying higher taxes in marriage is bad enough, but don’t compound the problem by overspending. Make 2025 the year you commit to crushing your debts and putting yourself on a solid financial foundation.

Married couples need to worry about more than federal tax quirks: The state they live in may tag them with a higher tax rate too.

In fact, the Tax Foundation says 15 states have a marriage penalty on the books:

• California
• Georgia
• Maryland
• Minnesota
• New Jersey
• New Mexico
• New York
• North Dakota
• Ohio
• Oklahoma
• Rhode Island
• South Carolina
• Vermont
• Virginia
• Wisconsin

Rates and thresholds vary by state. But in all of these places, married taxpayers filing jointly face income brackets that are less than double the brackets applying to single filers.

Social Security benefits also may come with higher taxes if you’re married.

For single filers in 2024, if half their Social Security money plus sources of other income does not exceed $25,000, they don’t need to worry about taxes on it. Income over that $25,000 can make Social Security benefits partially taxable, however.

For married couples filing jointly, the threshold isn’t much higher: $32,000.

Over the years, Congress has reduced tax penalties for married couples. But there are still some areas of the tax code that hold nasty surprises for newlyweds filing a joint return for the first time.

There are no simple solutions to avoiding these penalties, which make it more difficult to get ahead financially. Meeting with a tax professional might help you reduce your taxes, but you likely won’t be able to avoid the marriage penalty.

Perhaps paying higher taxes is the price of true love.