North SPD Calls for Reform of Married Couples' Tax Allowance - Germany's outdated spousal tax system faces reform to support modern families
Germany's joint spousal taxation system, known as Ehegattensplitting, is facing calls for reform. The SPD parliamentary group in Schleswig-Holstein is pushing for changes, arguing the current model is outdated and unfair. Introduced in 1958, the system was designed when traditional gender roles dominated society—and critics say it no longer fits modern realities.
The existing system rewards households where one partner earns significantly more than the other. This often discourages secondary earners, usually women, from working more or advancing their careers. The SPD claims these incentives clash with both gender equality and family policy goals.
Instead, the party proposes a Familiensplitting model. Under this approach, children would become the central factor in taxation. Tax burdens would decrease for each additional child, benefiting all parents—including single mothers and fathers.
The SPD also wants to eliminate the financial penalties that currently affect women who increase their working hours. By reforming the system, they aim to ease the burden on low- and middle-income families. The proposal would treat children equally, regardless of whether their parents are married or not.
The reform push comes as the SPD urges Schleswig-Holstein's regional government to take action. If adopted, the changes would mark a major shift from the 1958 system, which was built on outdated gender norms. The focus would move from spousal income splits to supporting families based on the number of children they raise.
