Single vs. Joint Assessment – What's Better?

Married couples can choose between single assessment and joint assessment (income splitting). But which is more beneficial?

Single Assessment

With single assessment, each partner files a separate tax return. Each is assessed individually as if single.

Advantages:

  • Separate responsibility
  • Makes sense for similar incomes

Disadvantages:

  • Usually higher tax burden than splitting
  • No joint optimization

Joint Assessment (Income Splitting)

With joint assessment, both incomes are added, halved, tax calculated, then doubled.

Advantages:

  • Tax savings with different incomes
  • Joint tax return

Disadvantages:

  • Joint liability
  • No advantage with similar incomes

When does income splitting pay off?

Income splitting is particularly advantageous when one partner earns significantly more than the other.

Example:

Single Assessment: - Partner A: €60,000 → Tax: €15,200 - Partner B: €20,000 → Tax: €2,450 - Total: €17,650

Joint Assessment: - Combined: €80,000 → Halved: €40,000 per partner - Total: €15,840

Savings through splitting: €1,810

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