How Married Couples Can Save Money on Taxes in Germany in 2025

If you’re married and living in Germany as a foreigner, understanding how the tax system works for couples can help you save a significant amount of money every year.

Germany offers a tax benefit for legally married couples called Ehegattensplitting, or income splitting, and many expats don’t even know it exists.

Whether your partner is working full-time, part-time, or not at all, filing your taxes jointly can often lower your total tax burden.

In this guide, you’ll learn exactly how the system works, who qualifies, when it makes sense to file jointly, and how much you can actually save in real-life situations.

What Is Ehegattensplitting?

Ehegattensplitting is a system that allows legally married couples to combine their incomes and split them equally for tax purposes.

Here’s how it works:Let’s say Spouse A earns €80,000 per year, and Spouse B earns nothing.

Instead of taxing Spouse A on €80,000 (which would be in a higher tax bracket).

Germany allows you to average the income between both spouses, so each one is taxed as if they earned €40,000.

The result is a lower overall tax rate and thousands of euros saved.

This is especially useful in situations where:

• One partner is unemployed or studying
• One partner just arrived in Germany and has no income yet
• One spouse earns significantly more than the other

Important: This benefit is only available if you are legally married and both spouses are registered as tax residents in Germany.

How Much Can You Actually Save?

The amount you save depends on how different your incomes are.

The bigger the gap between your earnings, the greater the potential benefit.

Estimated tax comparison for married couples in Germany based on different income combinations. Values are simplified for illustration purposes and may vary depending on deductions and individual circumstances.

To give you a clearer idea:

• A couple where one person earns €80,000 and the other earns €0 could save around €8,000 by filing jointly.
• A couple earning €60,000 and €30,000 could save about €2,500.
• When both partners earn nearly the same (e.g., €50,000 and €48,000), the savings drop to just €100, showing that joint filing is less useful in those cases.

These are simplified examples, but they illustrate how income splitting reduces your total tax bill by moving both partners into lower tax brackets.

Who Can Use This System?

To benefit from Ehegattensplitting, you must meet the following conditions:

• You are legally married (including civil partnerships)
• Both spouses are tax residents in Germany
• You submit a joint tax return (Zusammenveranlagung)

You do not need to both be employed. Even if one partner earns no income at all, you can still file jointly and take full advantage of the tax benefit.

If your marriage was registered outside Germany, it must be recognised under German law.

You may be asked to provide a certified translation of your marriage certificate.

What If Your Spouse Is Abroad?

This is where things get more complex. You can only file jointly if both spouses have unlimited tax liability in Germany.

That usually means both live and are registered in Germany.

However, if your spouse lives abroad but opts into unlimited tax liability (for example, by earning income in Germany or submitting the correct forms);

You might still be able to file together. In these cases, you should always speak to a Steuerberater (tax advisor) with experience in international situations.

Understanding German Tax Classes for Married Couples

In Germany, your tax class (Steuerklasse) determines how much tax is withheld from your monthly salary.

Married couples can choose between two combinations:

Tax Class III and V

• Ideal when one spouse earns significantly more
• Higher earner: Class III (less tax deducted)
• Lower earner: Class V (more tax deducted)
• Can boost your monthly net income but may require adjustment at the end of the year

Tax Class IV and IV

• Best if both spouses earn similar amounts
• Balanced tax deductions for both
• Usually avoids large refunds or back payments

You can change your tax classes by submitting a request to your local Finanzamt.

This change is allowed once per year and can have a big impact on your monthly budget.

How to File Jointly in Germany

Filing jointly is simple if you follow the right steps:

1. Make sure your marriage is recognised under German law
2. Ensure both partners are registered with a German address
3. Use ELSTER (the official online tax platform) or a service like Taxfix or Wundertax
4. On the tax return, select “Zusammenveranlagung” (joint assessment)
5. Include income details for both spouses, even if one earned nothing
6. Submit by 31 July, or later if using a tax advisor

For complex cases—like foreign income, cross-border employment, or asset declarations—it’s wise to speak with a tax advisor to avoid mistakes and penalties.

Is Joint Filing Always Better?

Not always. If both partners earn similar incomes, the tax advantage of income splitting is minimal.

In some cases, it may even be better to file separately (Einzelveranlagung).

That’s why many couples simulate both options using online calculators or tax apps before choosing.

What to Keep in Mind

If you’re married and living in Germany, not using the Ehegattensplitting system could mean leaving money on the table.

Especially for couples with a single earner or a large income gap, the savings can be substantial.

Don’t forget that joint filing isn’t automatic. You have to actively choose it when submitting your tax return, and make sure both spouses are officially registered.

If you’re unsure whether joint filing is the best option for you, simulate both options or talk to a professional.

With the right approach, you could reduce your tax burden significantly and improve your financial situation in Germany.