20 Tax Perks for Married Couples

Marriage comes with a treasure trove of tax perks that can slash your bill, boost your savings, and help you build wealth together—if you know how to take advantage of them!

Alyana Aguja
March 26, 2025
6 min read

20 Tax Perks for Married Couples — Wedding Dreamz from Unsplash

Marriage is not all about love—it’s also a money move, tapping into tax benefits that can save couples thousands of dollars annually. From lower tax rates and larger deductions to retirement advantages and home sale exemptions, married couples can enjoy access to lucrative money-saving opportunities. By knowing and leveraging these tax benefits, couples can retain more of their hard-earned money and create long-term financial stability together.

1. More Standard Deduction

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Filing together enables you to take a more significant standard deduction, which was $27,700 in 2023 compared to $13,850 for singles. This lowers taxable income substantially, reducing the overall tax burden. It’s one of the easiest and most advantageous benefits of marriage.

2. Lower Tax Brackets

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Married couples filing jointly often qualify for lower tax rates than if they filed separately. For example, in 2023, a couple earning $89,450 was in the 12% bracket, whereas a single filer earning half that ($44,725) would be taxed at the same rate. This prevents the so-called “marriage penalty” for most middle-class couples.

3. Spousal IRA Contributions

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Typically, a person has to have earned income to contribute to an IRA, but spouses can contribute to a Spousal IRA when one spouse doesn’t work. This enables stay-at-home spouses to save for retirement and enjoy possible tax savings. Previously, each spouse could contribute up to $6,500 (or $7,500 if age 50 or older).

4. Double Capital Gains Exclusion on Home Sales

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You can exclude up to $500,000 of capital gains from taxation when you sell your primary residence as a married couple ($250,000 for single taxpayers). If your home cost you $300,000 and sold for $700,000, you’d owe no tax on that $400,000 gain. This is a huge benefit for couples accumulating wealth in their homes.

5. Gift Tax Exclusion Doubling

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Every individual can give up to $17,000 to any recipient yearly without incurring gift taxes (as of 2023). A couple can pool their exemptions and gift up to $34,000 tax-free to any recipient. This is handy for planning estates and wealth transfer tax-free.

6. Estate Tax Exemption Doubling

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Previously, the federal estate tax exemption was $12.92 million per individual, so a married couple could leave behind almost $26 million tax-free. When one spouse passes away, the other can inherit their exemption under “portability,” effectively doubling their estate tax protection. This allows wealth to be transferred with little tax impact.

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If one earns much more than the other, the lower earner can take Social Security on the higher earner’s record—up to 50% of their benefit. This can be done even if the lower earner never worked. It can be a big source of retirement income for couples.

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A surviving spouse may be able to keep the deceased spouse’s Social Security benefits if they were greater than his or her own. This is a safeguard for widows and widowers and vital protection for couples where one is the major breadwinner.

9. Child Tax Credit Maximization

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The Child Tax Credit offers up to $2,000 per child, with $1,600 previously refundable. Joint filers may claim the full credit if their income is below $400,000, while single filers reduce at $200,000. This roughly doubles the income cut-off for couples.

10. Adoption Tax Credit Increase

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Married couples who adopt a child can take an adoption tax credit of up to $15,950. This can be used to pay for adoption, legal, and travel fees. It’s a wonderful financial help for families growing through adoption.

11. Education Tax Benefits (Lifetime Learning Credit & AOTC)

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Married couples filing jointly can claim up to $2,500 per student with the American Opportunity Tax Credit (AOTC). They can also qualify for the Lifetime Learning Credit, which provides up to $2,000 in education expenses. These credits ease the financial burden of tuition and other school expenses.

12. Student Loan Interest Deduction Boost

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Joint filers can deduct up to $2,500 of student loan interest if their income is less than $155,000 (phase-out starts at $145,000). Single filers phase out at $75,000, so married couples receive almost twice the benefit. This deduction does not matter if only one spouse has student loans.

13. Earned Income Tax Credit (EITC) Expansion

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The Earned Income Tax Credit can give low to moderate-income families up to $7,430. Married couples need a higher income level to qualify than single filers, so they are able to make more and still get the credit.

14. Health Savings Account (HSA) Contribution Boost

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A married couple with a high-deductible medical plan can contribute as much as $7,750 to an HSA ($3,850 for single individuals). The contributions are tax-deductible, tax-free growth, and can be spent on qualified medical expenses. Both spouses can contribute an additional $1,000 each if both are 55 or older.

15. Flexible Spending Account (FSA) Doubling

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Both spouses can contribute a maximum of $3,050 to a medical FSA, so a couple can save $6,100 in pre-tax money for medical costs. This reduces taxable income and assists in paying out-of-pocket healthcare expenses. FSAs are particularly useful for families who have recurring medical expenses.

16. Mortgage Interest Deduction

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Spouses can deduct up to $750,000 in mortgage interest on home loans if they file jointly ($375,000 for single filers). The deduction decreases taxable income, which makes homeownership more economical. It’s one of the largest tax benefits for married couples with mortgages.

17. Deductions for Charitable Contributions

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Joint filing couples can deduct as much as 60% of their adjusted gross income for cash contributions to eligible charities. Single filers are allowed the same percentage limit on a lower income base. Couples, therefore, get to donate more while enjoying maximum tax benefits.

18. Business Tax Benefits for Spouses

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If you have a business, your spouse can be an employee without payroll taxes if they are not a formal employee. Also, spouses who own a business may choose to be a Qualified Joint Venture, making tax reporting easier. Both of these methods reduce self-employment tax liability.

19. Roth IRA Contribution Eligibility Expansion

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The contribution right for a Roth IRA tapers off at $153,000 for single taxpayers but goes up to $228,000 for couples. This allows couples to enjoy tax-free growth even at higher income. It’s an excellent retirement savings vehicle, particularly for younger couples.

20. Penalty-Free Retirement Fund Transfers

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When one spouse passes away, the other can roll over retirement accounts such as 401(k)s and IRAs into their own without penalty. This means they can keep tax-deferred growth going rather than having to take taxable distributions. It’s an important financial protection for surviving spouses.