German Finance Minister Lars Klingbeil (SPD) has proposed a new system to replace the traditional “marital split” (“Ehegattensplitting”). In a draft ministerial briefing that the “Spiegel” reported, he describes a so‑called “fictitious real splitting” that would allow couples to allocate a specific tax allowance between themselves in a way that optimises their joint tax burden. Normally the lower‑earning partner would shift a portion of the allowance to the higher‑earning partner.
The ministry bases the amount of this transferable allowance on the maximum alimony deduction that a divorced or separated spouse can claim, which at present is €13,805. The new real‑splitting scheme is intended to strengthen partnerships without privileging any particular family model.
Its impact is greatest in couples with a large income gap. The significant tax advantage enjoyed by couples whose partners earn very different amounts under the old system would disappear. When partners earn similar amounts, there would be no change.
Analysts from the German Economic Institute (IW) have run example calculations. They used a slightly lower basic tax‑free allowance than the ministry’s proposal. For a couple with €100,000 of taxable income for one partner and €0 for the other, the new real‑splitting would reduce tax savings by €4,582 per year compared with the old marital split. With the ministry’s figures, the shortfall would be closer to €4,100. For couples earning €70,000 and €25,000 respectively, the difference would be only about €300 annually.
According to the ministry, the reform would apply only to newly entered marriages; existing marriages would retain the old marital split. Klingbeil does, however, plan a separate change for existing couples: the abolition of tax classes III and V, leaving only tax class IV with the existing factor method that controls the monthly withholding of income tax.