Getting married and paying taxes: What changes for you

Marriage brings many changes – for example financial ones: From now on, you pay the taxes together, which is usually more expensive. Nevertheless, there are opportunities to make savings.

The marriage penalty is no secret: Married people pay higher taxes. Marrying and saving on taxes anyway – is that even possible? In fact, it is possible to reduce your tax burden when you are married and use the money saved elsewhere. Either as an additional amount in the family fund or as an investment in your joint future by investing your money with a return on the capital markets.

Taxes after marriage: What is changing

Unmarried couples are taxed individually. You receive your own tax invoices, complete your own tax returns, and receive your own tax assessments. Find out more in our article on cohabitation.

All this changes when you get married: As a married couple, you will receive a joint tax invoice, declaration, and assessment from the time you get married. The marital status as of December 31 determines the taxation of the entire tax year. You can find additional information and tips on filing your taxes in our blog.

Marriage penalty: Tax disadvantages for married couples

If a married couple is taxed together, a higher income must be taxed – provided they are both gainfully employed – and the married couple slides into a higher progression level. This results in higher tax amounts than before the marriage. Since tax expenditures can rise by more than 10% after marriage if the income remains the same, this can lead to financial difficulties for some married couples. In this context, the public often talks about the so-called “marriage penalty.” Nevertheless, there are ways to save on taxes even after you get married.

Tax advantages for married couples

Although there is a special rate for married people that is lower than the tax rate for single people, taxes increase after marriage. 

However, married couples benefit from the marriage deduction for direct federal tax purposes. For all married couples, a flat-rate amount of CHF 2,600 is deducted from their taxable income. 

In addition, married couples who are both gainfully employed can claim the second earner’s deduction. For federal tax purposes, half of the lower income (minimum of CHF 8,100 to a maximum of CHF 13,400) can be deducted. At the cantonal level, these two deductions vary.

Further tax savings for double earners

For double-earners, tax savings are all the more important due to the high rate of progression. Paying into Pillar 3a or closing pension gaps in your pension fund are ideal ways to reduce your tax bill. They are also a good investment in the future. In the blog “8 tips: How to save on taxes” you will receive further tips and tricks on how to save on taxes after you get married.

Other financial advantages and disadvantages of getting married

Marriage influences your situation in many ways. Find out about the impact before taking this important step. Here are some other advantages and disadvantages of getting married: 

Advantages

• Legal inheritance entitlement, usually without inheritance tax
• Possible entitlement to survivors’ benefits from Pillars 1 and 2 solutions
• The surviving dependant is insured with Pillar 3 as the the first beneficiary
• AHV contributions are split during marriage and credited equally to the couple
• Pension fund assets are split on divorce and each couple receives half of the assets they have saved during the marriage

Disadvantages

• Higher taxes due to the marriage penalty
• Reduction of the AHV pension to a maximum of 150%of the maximum AHV pension
• High divorce costs

Our tip: Plan finances together

In the face of financial considerations and high taxes, romanticism in marriage threatens to fade into the background. This does not have to be the case: If you plan your finances together, you can keep your taxes under control even after you get married. And can also invest the savings wisely in investment solutions. This gives you financial freedom and at the same time more space for the beautiful things in life.