Tax status of married couples

For married couples, one spouse is taxed at tax class 2, and the other at a flat rate of 15% on their monthly payslips. For the annual tax return, tax class 2 is applied to all household income.

Married cross-border couples are taxed at source at a flat rate and benefit from the tax class when they file their tax return.

Tax status of civil union partners

Initially, civil union partners will retain the tax status of "single" on their monthly payslips. Until they choose to file a joint tax return, civil union partners retain their individual tax status (tax class 1 or 1a). They can then access the same tax benefits as married couples, including tax class 2 and other tax deductions.

Comparing the tax advantages of marriage and PACS

The main difference lies in the way partners are taxed on their monthly income and when they file their annual tax return. Whereas married couples are taxed jointly as soon as they receive their income, civil union partners initially retain their individual tax status until they choose to file their tax return jointly.

If we compare two couples, one married and one civil union partner, with the same salaries, the married couple's monthly withholding tax will be lower than that of the civil union partner. As a result, it is likely that the married couple will have to repay some of their tax when they file their annual tax return, depending on the deductions that apply. For the civil union couple, on the other hand, they will probably pay too much tax at source because of their initial individual tax status, but will be able to recover the overpayment thanks to the joint tax return.

Updated on: 22/03/2024