Marriage is bliss, but maybe not at tax time in these 18 states

Which state imposes the steepest marriage penalty?

Which state offers a tax advantage for married couples?

How does joint filing affect tax credits?

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Marriage usually brings excitement and happiness to someone’s life, but in certain states, it can also bring a tax penalty.

The Tax Cuts and Jobs Act of 2017 eliminated the marriage penalty on income tax for all but those Americans in the highest tax bracket on a federal level by doubling the single filer amount for joint filers. But investing research platform BestBrokers found 18 states that still carried a “marriage penalty” in 2025. Couples filing jointly in those states face higher taxes than if they filed as individuals because the tax income thresholds aren’t doubled from single filers.

Depending on which state Americans live in, getting married can cost couples upwards of $8,000 annually due to the penalty, BestBrokers said. In states with marriage penalties, households where both spouses earn similar incomes are the most affected, according to The College Investor education and money site.

Marriage penalties “illustrate how state-specific tax structures, progressive brackets, and deductions combine to create either a financial advantage or disadvantage for married couples, even at moderate incomes,” wrote Paul Hoffman, editor in chief at BestBrokers.

Which states have a marriage penalty?

1. Arkansas

2. Delaware

3. District of Columbia (counted as a state for the survey’s purpose)

4. Maryland

5. Minnesota

6. Mississippi

7. Missouri

8. Nebraska

9. New Jersey

10. New Mexico

11. North Dakota

12. Ohio

13. Rhode Island

14. South Carolina

15. Vermont

16. Virginia

17. West Virginia

18. Wisconsin

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Where are the largest marriage penalties?

To determine the states where couples would pay the most for being married, BestBrokers assumed a standard deduction of $15,750 for married filing separately and $31,500 for filing jointly with both spouses earning $75,000 each. The difference indicates a marriage penalty if the couple pays more jointly than two individuals.

“Washington, DC, imposes the steepest marriage penalty, costing a married couple an extra $8,173 annually compared to two individual filers,” said Hoffman. “Delaware and West Virginia also have notable penalties, largely due to the way their progressive brackets and deductions interact at this income level.”

Below are the full results:

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1. Washington, DC: $8,173

2. Delaware: $7,008

3. West Virginia: $5,724

4. New Mexico: $2,146

5. Rhode Island: $1,834

6. New Jersey: $1,575

7. Wisconsin: $1,469

8. Ohio: $1,364

9. Virginia: $1,318

10. South Carolina: $1,212

11. Minnesota: $1,191

12. Vermont: $1,046

13. Missouri: $857

14. Mississippi: $440

15. North Dakota: $312

16. Maryland: $253

17. Arkansas: $86

18. Nebraska: $1

Are there any states where marriage pays?

New York is the only state where married couples finish ahead of individual filers on income tax, BestBrokers said. Couples there see their tax burden reduced by $23 compared with two singles.

“In practice, some couples file jointly even when only one spouse works, which can amplify the marriage penalty or bonus depending on the state,” Hoffman said. “This has become increasingly relevant in 2025 and continues to be in 2026, as discussions over state tax fairness, dual-income households, and relocation incentives continue to surface in national and local policy debates.”

Marriage penalties still show up elsewhere, too

There are other instances when taxpayers may also see a marriage penalty because the married brackets are not double the single brackets. Theyinclude:

• Qualified dividend and long-term capital gains: The penalty applies at the top two rates (15% and 20%). For 2025, the 15% capital gains rate will apply to those with taxable income (over the 0% bracket) up to $533,400 for singles and $600,050 for married couples. The 20% maximum tax rate is imposed on those whose taxable income is over $533,400 single and $600,050 married.

• Net investment income, also known as the Medicare capital gains surtax: The 3.8% tax kicks in at $200,000 for singles and $250,000 for couples.

• A 0.9% Medicare tax: Imposed on those whose earned income is over $200,000 single or $250,000 married.

• Social Security:Benefits are taxable when combined income exceeds $32,000 for couples and $25,000 for individuals. “Because the joint threshold isn’t double, many couples begin paying taxes on their benefits earlier than they would as two singles,” The College Investor said.

• Child and Dependent Care Credit: The tax credit starts to phase out at an adjusted gross income of $15,000. “Since married couples must report joint income, they often lose access to the full credit sooner than two working single parents with similar earnings,” The College Investor said.