"The 'marriage penalty' occurs when a married couple pays more in income taxes than they would have if each spouse had filed as single. This penalty typically affects high-income couples. For 2025, the top federal tax rate remains 37% for individual filers with incomes over $626,350. But for married couples filing jointly, the 37% threshold isn't doubled to $1,252,700. Instead, it kicks in at $751,600."
"The same applies to capital gains. The top long-term capital gains tax rate of 20% applies once a single taxpayer's income exceeds $518,901. But for married couples filing jointly, the 20% rate applies once their combined income exceeds $583,751 - not $1,037,802, which would be the doubled threshold. Another way the marriage penalty can appear is through lost deductions. For example, the student loan interest deduction begins to phase out once income exceeds $85,000."
Travis Kelce and Taylor Swift's engagement could subject the couple to the U.S. federal marriage penalty, where married filing jointly pays more income tax than if filing separately. The marriage penalty commonly affects high-income taxpayers: for 2025 the individual 37% rate begins at $626,350 but for married couples it starts at $751,600 rather than double. Long-term capital gains reach the top 20% rate at $518,901 for singles versus $583,751 for joint filers. Deductions can also be lost after marriage; the student loan interest deduction phases out above $85,000 and disappears for some couples with joint income above $200,000. The SALT deduction cap was raised to $40,000 but is not doubled for joint filers.
Read at Above the Law
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