Should married couples file jointly (Zusammenveranlagung) or separately (Einzelveranlagung) in Germany?

Married couples and registered civil partners in Germany can choose between joint assessment (Zusammenveranlagung) and individual assessment (Einzelveranlagung). Joint filing uses the Splittingverfahren (income-splitting method): the combined income of both spouses is halved, the tax on the half-income is calculated, and then doubled. Because the tax scale is progressive, splitting the income reduces the total tax when incomes differ between spouses.

The Splittingvorteil (splitting advantage) is greatest when there is a large income difference between the two spouses. If one spouse earns €80,000 and the other earns nothing, joint filing produces a significantly lower tax bill than individual filing. If both spouses earn the same income, joint and individual filing produce identical results because the splitting has no effect.

Individual filing may be preferable in specific situations: when one spouse has significant losses that can be more efficiently used under individual assessment, when one spouse has foreign income that triggers unfavourable interactions, or in rare cases where individual credits or deductions interact better separately. The Finanzamt allows couples to switch between the two methods each year by making the appropriate election on the tax return. If no election is made, joint assessment applies by default to married couples. Couples who are separated for the entire calendar year cannot use Zusammenveranlagung for that year.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.