▁the ▁total ▁tax able ▁income . ▁ ▁Let ▁ ▁and ▁ ▁denote ▁each ▁sp ouse ' s ▁tax able ▁income . ▁Def ining ▁ ▁the ▁tax ▁schedule , ▁the ▁tax ▁due ▁for ▁cou ples ▁is ▁computed ▁by ▁. ▁The ▁splitting ▁advantage ▁increases ▁if ▁both ▁partners ▁have ▁une qual ▁in comes . ▁Another ▁consequence ▁is ▁a ▁high ▁marg inal ▁tax ▁rate ▁for ▁the ▁secondary ▁ear ner , ▁as ▁he / she ▁indirect ly ▁pays ▁the ▁marg inal ▁tax ▁rate ▁of ▁the ▁higher - ear ning ▁sp ouse . ▁ ▁The ▁second ▁aspect ▁involves ▁the ▁With hold ing ▁tax ▁( L ohn ste uer ) ▁which ▁is ▁paid ▁on ▁employ ment ▁income . ▁Family ▁tax ation ▁implies ▁that ▁married ▁cou ples ▁may ▁split ▁the ▁total ▁basic ▁exem ption ▁( G rund fre ib et rag ). ▁This ▁is ▁done ▁via ▁choosing ▁the ▁appropriate ▁tax ▁bra cket ▁( Ste uer k lasse ). ▁The ▁higher - ear ning ▁sp ouse ▁pre domin antly ▁opts ▁for ▁Ste uer k lasse ▁III , ▁where ▁he / she ▁can ▁claim ▁both ▁exem ptions , ▁while ▁the ▁lower - ear ning ▁sp ouse ▁will ▁be ▁tax ed ▁without ▁exem ption ▁( Ste uer k lasse ▁V ). ▁ ▁Both ▁arrang ements ▁are ▁widely ▁considered ▁to ▁create ▁an ▁in cent ive ▁for ▁une qual ▁employ ment ▁within ▁married ▁cou ples ▁in ▁Germany , ▁providing ▁one ▁cause ▁for ▁low ▁labor ▁force ▁participation ▁among ▁married ▁women . ▁ ▁Canada ▁ ▁In come ▁splitting ▁was ▁not ▁a ▁part ▁of ▁Canada ' s ▁tax ▁system