The ‘Marriage Penalty’ is back: These American states hit couples with a hidden tax

The marriage tax penalty happens when married couples pay higher state income taxes filing jointly than they would as two single filers.While federal tax law largely eliminated penalties for married filers, state tax systems show a different story. In many states, couples who file jointly may owe more than they would if they filed separately as individuals. This issue, called the marriage tax penalty, impacts millions of households, mainly dual-income earners. At least 17 states have specific thresholds that could lead to an additional tax charge just for filing jointly instead of separately.As tax season nears in 2026, understanding how state filing rules work has become increasingly significant for couples attempting to plan their finances and avoid surprise bills.

Why the Marriage Penalty Still Exists

It’s essential to first note that, on a federal level, the Tax Cuts and Jobs Act of 2017 eliminated a marriage penalty on income tax for almost all Americans, per USA Today.


However, state tax systems function independently from federal guidelines. Except, at least 17 states and Washington DC still impose a “marriage penalty” tax as of 2025, according to investment research platform BestBrokers. Those couples that file in these states experience elevated taxes as joint filers compared to if they each filed individually instead.

This disparity happens as state income thresholds for married filers are not always established as a clean double of those for single filers. This is because the thresholds are not perfectly doubled from single filers. Overall, depending on the place where the couple lives, getting married can cost them over $8,000 annually.

Who Is Most Impacted

The most impacted couples are those where each spouse receives a similar income amount, according to The College Investor. When both of them have comparable earnings, combining incomes can force couples into higher tax brackets more rapidly, elevating the total amount owed at the state level.

States With a Marriage Penalty

Arkansas, Delaware, Maryland, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, North Dakota, Ohio, Rhode Island, South Carolina, Vermont, Virginia, West Virginia, and Wisconsin have it.

To find where the penalty is most elevated, BestBrokers examined a standardized scenario. To find which states have the steepest penalty, BestBrokers regarded a standard deduction of $15,750 for married filing individually and $31,500 for a joint filing with spouses getting $75,000 each.

Where the Penalty Is Highest—and Lowest

After analyzing the details, Washington DC arrived with “the steepest marriage penalty, costing a married couple an extra $8,173 annually compared to two individual filers,” according to Paul Hoffman, editor in chief at BestBrokers.

“Delaware and West Virginia also have notable penalties, largely due to the way their progressive brackets and deductions interact at this income level,” he stated.

Some states near the bottom of the list showed either very little or nonexistent for couples, however. Maryland was limited at only a $253 penalty, Arkansas at $86, and Nebraska at $1.

FAQs:

Q1. What is the marriage tax penalty?
It happens when married couples owe more in taxes filing jointly than they would separately. This usually happens because state tax brackets are not completely adjusted for joint filers.

Q2. Does the federal government still have a marriage penalty?
For most taxpayers, no. Federal tax reforms largely eliminated it, but state guidelines can still result in penalties.