What you need to know about the tax system in 2025
Learn how the 2025 tax brackets work and what it means for your income taxes this season.
Marriage usually brings excitement and happiness to someone’s life, but it can also result in tax penalties in certain states.
The Tax Cuts and Jobs Act of 2017 eliminated the income tax marriage penalty for all Americans except those in the highest tax bracket at the federal level by doubling the amount for single filers and joint filers. However, investment research platform Best Brokers found that 18 states will still have a “marriage penalty” in 2025. Couples filing jointly in these states face higher taxes than those filing individually because the tax threshold is not twice that of a single filer.
According to Best Brokers, depending on which state an American lives in, getting married can cost a couple more than $8,000 a year in penalties. In states with marriage penalties, households where both spouses earn similar incomes are most affected, according to the education and money site The College Investor.
Paul Hoffman, editor-in-chief of Best Brokers, writes that the marriage penalty “illustrates how state-specific tax structures, progressive tiers, and deductions combine to create or disadvantage couples, even those with modest incomes, financially.”
Which states have penalties for marriage?
- arkansas
- Delaware
- District of Columbia (counted as a state for survey purposes)
- maryland
- minnesota
- mississippi
- missouri
- nebraska
- new jersey
- new mexico
- north dakota
- ohio
- rhode island
- south carolina
- vermont state
- virginia
- west virginia
- wisconsin
Where are the penalties for marriage the greatest?
To determine which states pay the most for married couples to get married, Best Brokers assumed a standard deduction of $15,750 for married couples filing separately and $31,500 for married couples filing jointly with incomes of $75,000 each. This difference means a marital penalty if the couple jointly pays more than they would pay together.
“Washington, D.C., imposes the most severe marriage penalty, costing a married couple an additional $8,173 per year compared to filing individually,” Hoffman said. “Delaware and West Virginia also have notable penalties, primarily due to the interrelationship of progressive categories and deductions at this income level.”
The full results are below.
- Washington DC: $8,173
- Delaware: $7,008
- West Virginia: $5,724
- New Mexico: $2,146
- Rhode Island: $1,834
- New Jersey: $1,575
- Wisconsin: $1,469
- Ohio: $1,364
- Virginia: $1,318
- South Carolina: $1,212
- Minnesota: $1,191
- Vermont: $1,046
- Missouri: $857
- Mississippi: $440
- North Dakota: $312
- Maryland: $253
- Arkansas: $86
- Nebraska: $1
Are there any states where you get paid when you get married?
According to Best Brokers, New York is the only state where married couples file income taxes before individual filers. A couple there would see their tax burden reduced by $23 compared to two single people.
“In fact, some couples file jointly even if only one spouse is working, which can result in higher marital penalties or bonuses depending on the state,” Hoffman said. “This issue will become increasingly important in 2025 and will continue to be important in 2026, as discussions around state tax equity, working families, and migration incentives continue to surface in national and local policy discussions.”
Marriage penalties are still found elsewhere
In other cases, a taxpayer may be subject to a marriage penalty because the proportion of married persons is not twice the proportion of unmarried persons. they are IIncludes:
- Qualified dividends and long-term capital gains: Penalties apply to the top two rates (15% and 20%). In 2025, the 15% capital gains rate will apply to people with taxable income (above the 0% threshold) up to $533,400 for singles and $600,500 for married couples. The maximum tax rate of 20% is levied on people with taxable income of more than $533,400 for singles and $600,050 for married people.
- Net investment income, also known as Medicare capital gains surtax: 3.8% tax starts at $200,000 for singles and $250,000 for couples.
- 0.9% Medicare tax: The tax is imposed on people with earned income of more than $200,000 for a single person or $250,000 for a married person.
- social security: Benefits are taxable when combined income exceeds $32,000 for couples and $25,000 for individuals. “Because the joint threshold is not doubled, many couples start paying taxes on their benefits sooner than two single people,” College Investor said.
- Child and Dependent Care Credit: The tax credit phases out once your adjusted gross income reaches $15,000. “Because married couples must report joint income, they often lose access to the full amount of credit sooner than two working single parents with similar incomes,” The College Investor said.
Medora Lee is USA TODAY’s money, markets and personal finance reporter. Please contact us at mjlee@usatoday.com. Subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.
