German Spousal Splitting Calculator 2026

Spousal Splitting (Ehegattensplitting): How Married Couples Save on Taxes in Germany

One of the most significant tax advantages available to married couples in Germany is the Ehegattensplitting, the spousal income splitting procedure. This method can save married couples thousands of euros in income tax each year, and understanding how it works is particularly important for expat couples where one partner may be the primary earner while the other is not yet working, is on parental leave, or is building a career in a new country.

The legal basis for spousal splitting is §32a paragraph 5 of the Income Tax Act (EStG), combined with the provisions for joint assessment in §26 and §26b EStG. The German Federal Constitutional Court (Bundesverfassungsgericht) has repeatedly confirmed the constitutionality of spousal splitting as an expression of the constitutional protection of marriage and family under Article 6 paragraph 1 of the Basic Law (Grundgesetz).

How Spousal Splitting Works: The Mathematics

The splitting procedure follows three simple mathematical steps:

1. Addition: Both spouses' taxable incomes are added together to form a combined taxable income (gemeinsames zu versteuerndes Einkommen)
2. Halving: The combined income is divided by two
3. Doubling the tax: Income tax is calculated on the halved amount and then doubled

The formula is: Total Tax = 2 x IncomeTax(combined income / 2)

Because Germany's income tax system is progressive (meaning higher incomes are taxed at higher rates) this procedure produces a lower total tax when the spouses have different income levels. In essence, the higher earner's income is "shifted down" to a lower tax bracket, while the lower earner's income is "shifted up." The net effect is a reduction in total tax, because the tax savings from reducing the higher earner's marginal rate always exceed the additional tax from increasing the lower earner's rate.

Practical Example

Consider a married couple where Partner A earns €80,000 and Partner B earns €20,000 taxable income:

Now consider the extreme case where Partner A earns €100,000 and Partner B has no income:

The Maximum Splitting Advantage

The maximum possible splitting advantage occurs when only one spouse has income and that income reaches the top tax bracket. For 2026, the maximum theoretical splitting advantage is approximately €19,000. This maximum is reached at the point where the single earner's income hits the level at which the "rich tax" (Reichensteuer) of 45% applies, approximately €555,650 combined for the couple (€277,825 per half).

In practice, the splitting advantage is most relevant for couples where one partner earns between €40,000 and €150,000 and the other earns significantly less or nothing at all. This is a very common situation for expat families where one partner has relocated for work and the other is still establishing themselves.

Tax Class Combinations for Married Couples

It is crucial to understand that the tax class combination does not affect the annual tax liability. Tax classes only determine how income tax is distributed across monthly payroll deductions. The final tax is always calculated through the annual tax return using the splitting procedure regardless of which tax classes were chosen. The three options are:

When Individual Assessment May Be Better

While joint assessment with splitting is beneficial for most married couples, there are situations where individual assessment (Einzelveranlagung) can produce a lower total tax:

• Replacement income subject to the progression clause: If one spouse receives significant tax-free income that is subject to the progression clause (Progressionsvorbehalt), such as ALG I, Kurzarbeitergeld, Elterngeld, or foreign income, this income raises the tax rate on the other spouse's earnings in joint assessment. Individual assessment may limit this effect.
• Special church tax (besonderes Kirchgeld): In marriages where only one spouse is a church member and that spouse has little income, the church may levy a special church tax based on the couple's joint income. Individual assessment avoids this.
• Loss carry-forward: If one spouse has losses from previous years, individual assessment may allow the loss to be carried forward to future years rather than being offset against the other spouse's current income.
• Extraordinary expenses: Certain deductions (like the threshold for extraordinary expenses) are calculated based on total household income. Individual assessment may make these deductions more accessible.

Our calculator above compares both options automatically, so you can immediately see which method is more advantageous for your specific situation.

Splitting for Expat Couples: Special Situations

One Spouse Working in Germany, One Abroad

If you work in Germany and your spouse lives in another EU/EEA country, you can still use spousal splitting by applying for unlimited tax liability under §1 paragraph 3 EStG. The requirement is that at least 90% of the couple's worldwide income is subject to German tax, or that the income not subject to German tax does not exceed the basic tax-free allowance (Grundfreibetrag), which is €12,096 in 2026.

For spouses residing outside the EU/EEA, joint assessment is generally not available. This can be a significant tax disadvantage for expats whose partners have not yet moved to Germany.

Year of Marriage or Separation

Spousal splitting applies for the entire tax year in which the marriage took place, even if you married on December 31. This means couples who marry late in the year can benefit from splitting for the full calendar year. Conversely, the splitting tariff remains available for the full year of separation, provided the couple lived together for at least part of that year.

Cross-Border Income

If your spouse earns income in another country, this income may be exempt from German tax under a double taxation agreement but still subject to the progression clause. In joint assessment, this foreign income increases the tax rate applied to the German income of both spouses. Depending on the amounts, this interaction can make individual assessment more favorable.

The Splitting Procedure and the Progressive Tax Tariff

To fully understand why splitting works, it helps to know Germany's income tax brackets for 2026:

• €0 to €12,096: 0% (basic tax-free allowance)
• €12,097 to €17,443: 14% to approximately 24% (entry zone, progressively increasing)
• €17,444 to €68,480: approximately 24% to 42% (progressive zone)
• €68,481 to €277,825: 42% (top rate)
• Above €277,826: 45% (rich tax / Reichensteuersatz)

When a single earner's income of €100,000 is split into two halves of €50,000, each half falls entirely within the lower tax brackets. The portions that would have been taxed at 42% are instead taxed at rates between 24% and 36%. This is the source of the splitting advantage.

Tips for Expat Couples

• Get married in Germany or register your foreign marriage: To access splitting, your marriage must be recognized under German law. Foreign marriages are generally recognized, but you should ensure the registration is complete at the Standesamt.
• Choose the right tax class combination: For maximum monthly take-home pay for the primary earner, choose III/V. For accuracy and fewer surprises, choose IV/IV with factor.
• Always file a tax return: Joint assessment with splitting requires filing an annual tax return. This also allows you to claim additional deductions.
• Consider the non-working spouse's future income: If your spouse plans to start working, the splitting advantage will decrease. Factor this into your financial planning.
• Review annually: Life circumstances change. Check each year whether joint or individual assessment is more beneficial, especially if one spouse receives replacement income or has foreign earnings.