When Saying "I Do" Means
Losing Benefits
Our tax and welfare systems often punish couples for getting married—creating a hidden barrier to family formation that hits working-class families hardest.
Real-World Example
Mom earns $20,000 • Dad earns $32,000 • Two children
UNMARRIED
$52K
$1,250
PENALTY
UNMARRIED
$42K
- $8,000 annual penalty for saying "I do"
What Are Marriage Penalties?
Marriage penalties occur when couples face higher taxes or reduced benefits simply because they’re married—compared to if they remained unmarried with the same combined income.
For low-income couples receiving government assistance, getting married can trigger sudden losses in essential benefits like food stamps, Medicaid, housing assistance, and childcare subsidies—even if their actual financial situation hasn’t changed.
The result? Many couples are forced to choose between the stability of marriage and the security of keeping their benefits. This creates a painful dilemma that undermines family formation and traps people in poverty.
The Scope of the Problem
Marriage penalties are widespread and hit working-class families hardest
1 in 10
Unmarried Americans don’t marry to keep benefits
10-30 %
Of household income lost to marriage penalties
3.6 %
$28-55 k
Programs That Penalize Marriage
Marriage penalties exist across multiple tax and welfare programs, compounding the financial hit when couples decide to marry.
SNAP (Food Stamps)
Combining incomes can push couples over eligibility limits, causing sudden loss of food assistance—regardless of whether they have children.
- Affects all income levels
Medicaid & CHIP
Marriage can disqualify families from health coverage, leaving them in the “welfare gap”—too much income for Medicaid, too little to afford private insurance.
- Critical health risk
Childcare Subsidies
Combined household income often exceeds childcare assistance limits, forcing parents to choose between marriage and affordable childcare.
- Affects all income levels
Earned Income Tax Credit
The EITC phases out at different rates for married vs. single filers, creating penalties especially for couples with children.
- Tax code penalty
Section 8 Housing
Marriage can disqualify families from housing vouchers or increase rent obligations, creating housing instability.
- Housing insecurity
Georgia State Income Tax
Georgia is one of 15 states with marriage penalties built into state income tax brackets, adding another layer of financial penalty.
- State-level penalty
Impact on Family Formation & Stability
Research has established that society benefits immensely from stable, healthy marriages. Children raised by married parents have better educational outcomes, lower poverty rates, improved emotional well-being, and greater economic mobility as adults.
Yet our policies send the opposite message. When couples face financial penalties for marrying, many make the rational—but ultimately harmful—choice to remain legally single, even while living together and raising children.
This isn’t just about money. Marriage provides legal protections, establishes clear parental rights, and creates the stability children need to thrive. When policies discourage marriage, they undermine the very foundation of strong communities.
The Numbers Tell the Story
GCO researchers analyzed 40,401 wage combinations for a couple with two children filing taxes in Georgia. The results were stark.
Policy Solutions
Eliminating marriage penalties requires action at both the federal and state level. Here are evidence-based reforms that would make the biggest difference for families.
Reform Means-Tested Programs
Congress should restructure eligibility rules for SNAP, Medicaid, and other programs to use household income thresholds that don’t penalize married couples compared to cohabiting couples.
Fix Tax Credit Phase-Outs
Reform the EITC and Child Tax Credit to eliminate marriage penalties by aligning phase-out thresholds for married couples with those for two single filers combined.
TANF Marriage Bonuses
States can use TANF funds to provide bonuses to low-income couples with children who marry, offsetting the penalties they would otherwise face.
Transition Periods
Allow newly married couples to continue receiving benefits for up to two years after marriage, giving them time to become financially stable.
See Marriage Penalties in Action
Customize scenarios to see exactly how marriage affects a family’s total income from wages and benefits.
Why Marriage Matters
Research consistently shows that marriage is one of the most important factors in breaking cycles of poverty and creating stability for children. Children raised in stable, married two-parent households have better outcomes across nearly every measure.
That’s why eliminating marriage penalties isn’t just about tax fairness—it’s about giving families the best chance to thrive.
