Tax Savings through Marriage: The Secret behind Joint Taxation

Newlyweds are automatically assessed for joint taxation in the year of marriage, which can lead to savings in some cases. This is made possible thanks to income splitting for married couples, where spouses are taxed together, often resulting in lower tax payments, especially when partners earn different incomes. Through the splitting process, the income of both partners is combined, halved, and then the tax is calculated for half. In most cases, this leads to a lower overall tax burden. Each year, the spouses decide whether to file jointly or separately in their tax return. They can choose either "Joint Assessment" or "Separate Assessment of Spouses/Partners".