Income Splitting Calculator
Calculate tax savings from income splitting between spouses.
See how dividing income reduces your total tax bill.
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Income Splitting Savings
Income splitting involves distributing income between spouses to take advantage of lower tax brackets.
How it saves money: In a progressive tax system, two people earning $75,000 each pay less total tax than one person earning $150,000.
US context: Filing Married Filing Jointly automatically provides some income splitting benefit because the joint brackets are roughly double the single brackets.
Where it matters most:
- One spouse earns significantly more than the other
- The higher earner’s income falls in a high bracket
- Self-employed couples who can allocate business income
This calculator compares:
- All income taxed to one person (single brackets)
- Income split 50/50 between two people (single brackets)
- Combined income filed jointly (married brackets)
Income splitting strategies should comply with tax laws. Consult a tax professional.