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The Economic Times

Economy / The Economic Times

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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. Although federal law minimized this issue, several states still apply tax brackets and deductions that disadvantage married households. The penalty mainly impacts couples with similar incomes, sometimes costing thousands of dollars yearly depending on location.

31 Jan 2026 6:46 pm