German Finance Minister Lars Klingbeil Proposes End to Marriage Splitting for New Couples

Finance Minister Lars Klingbeil (SPD) announced a plan to abolish the Ehegattensplitting tax advantage for newly married couples in Germany. Under the proposal, only future marriages would be subject to a new "Realsplitting" system, while existing marriages retain the current benefit. The reform also aims to move tax classes III and V into the factor method.

A model calculation shows that medium‑income families with a single earner would lose between €4,800 and €10,900 per year, indicating that the change would affect these households more than high‑income earners. The proposal is part of the coalition’s agreement, though a formal legislative draft has not yet been presented.

The change is presented as a measure for greater tax fairness, challenging the perception that the existing splitting primarily benefits the wealthy.