Marriage
Taxation

In some countries a married person or couple benefits from various taxation advantages not available to a single person. For example, spouses may be allowed to average their combined incomes. This is advantageous to a married couple with disparate incomes. To compensate for this, countries may provide a higher tax bracket for the averaged income of a married couple. While income averaging might still benefit a married couple with a stay-at-home spouse, such averaging would cause a married couple with roughly equal personal incomes to pay more total tax than they would as two single persons. In the United States, this is called the marriage penalty.

When the rates applied by the tax code are not based income averaging, but rather on the sum of individuals' incomes, higher rates will usually apply to each individual in a two-earner households in a progressive tax systems. This is most often the case with high-income taxpayers and is another situation called a marriage penalty.

Conversely, when progressive tax is levied on the individual with no consideration for the partnership, dual-income couples fare much better than single-income couples with similar household incomes. The effect can be increased when the welfare system treats the same income as a shared income thereby denying welfare access to the non-earning spouse. Such systems apply in Australia and Canada, for example.
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