Bundesfinanzminister Lars Klingbeil (SPD) has proposed a new model that would replace the traditional Ehegattensplitting. According to a ministry draft that “Spiegel” reported on, the existing concept would be superseded by what is called “fictitious real splitting”. In this system partners can allocate a specific tax‑free allowance between them in a way that optimises their joint tax burden. Typically the partner who earns less would transfer his allowance to the higher‑earning partner.
The ministry’s draft sets the amount of this allowance at the figure that a divorced or separately living spouse can deduct as alimony payment – currently €13,805. “Real splitting strengthens partnerships without privileging particular life models” the ministry explains.
The impact is most noticeable in relationships where one partner earns a lot and the other a little or nothing. The current system gives a significant tax advantage to couples with very unequal incomes; this would disappear under the new method. Couples with similar earnings would see no change.
The employer‑oriented institute German Economic Institute (IW) ran examples for the real splitting idea. It used a slightly lower base tax‑free amount than the ministry’s estimate. Its calculations for a married couple with one partner earning €100,000 and the other none indicate a yearly tax increase of €4,582 when moving from the existing Ehegattensplitting to the new real splitting. An IW tax expert, Tobias Hentze, told the news magazine that with the ministry’s figures the difference would be somewhat smaller-about €4,100. For a couple with incomes of €70,000 and €25,000 the change would worsen the tax situation by only around €300 per year.
According to the finance ministry, the reform would apply only to newly entered marriages. Existing marriages would keep the old Ehegattensplitting. However, Klingbeil also plans a change for current marriages: tax classes III and V would be abolished, leaving only tax class IV with the so‑called factor method. This already‑existing option determines the monthly withholding of income tax from wages.
