Quick Answer:
Marriage does not change your individual tax rate, but the ATO assesses some things on combined household income once you are married or in a de facto relationship. For 2026-27, the Medicare levy surcharge family threshold is $210,000, and only one main residence per couple can be exempt from capital gains tax at a time.
Getting married or moving in with a partner does not change your personal tax rate. What it does change is how the ATO looks at your household. The ATO treats married, de facto, and same-sex couples in a genuine domestic relationship the same way for tax purposes, and several rules switch from an individual to a combined-income basis once you are a couple.
Quick Summary: Marriage and Tax 2026-27
- You still lodge separate tax returns, but you must declare your spouse’s details, including their income, on your return
- Medicare levy surcharge: family threshold is $210,000 for 2026-27, up from $202,000, rising $1,500 per dependent child after the first
- Private health insurance rebate: uses the same combined-income tiers as the surcharge, and reduces as household income rises
- Only one main residence per couple can be exempt from capital gains tax at any one time
- Spouse super contribution offset: up to $540 if your spouse earns under $40,000, full offset if they earn $37,000 or less
- HELP/HECS repayments are still based on your individual income, not your combined household income
1. You Still Lodge Separately, But You Must Declare Each Other
Marriage does not create a joint tax return in Australia. You and your spouse each lodge your own return. However, your tax return asks for your spouse’s taxable income, even though it is not added to yours, because it determines your eligibility for several offsets, rebates, and levies that are assessed on a household basis.
This matters most for offsets and thresholds that use combined or spouse income as a test. Our top tax offsets guide covers several of these, including offsets where your spouse’s income affects what you can claim.
2. Medicare Levy Surcharge: The Combined Threshold Jumps
If you are single and earn more than $105,000 without private hospital cover, you pay the Medicare levy surcharge. As a couple, the threshold is $210,000 combined income for 2026-27, not double the single rate applied to each of you individually, but a single family threshold that applies to your combined income.
The family threshold increases by $1,500 for each dependent child after the first. Surcharge rates for 2026-27 are the same tiered structure as for singles: 1% of income for family income between $210,001 and $246,000, 1.25% between $246,001 and $328,000, and 1.5% above $328,001.
The catch many couples miss: if either partner does not have private hospital cover, the surcharge can apply to your combined income even if one partner earns well under the single threshold on their own.
Full thresholds and rates are on the ATO’s Medicare levy surcharge page.
3. Private Health Insurance Rebate Also Uses Combined Income
The private health insurance rebate uses the same income tiers as the Medicare levy surcharge. For 2026-27, couples and families with combined income of $210,000 or less receive the highest rebate tier, phasing down through $210,001 to $246,000, $246,001 to $328,000, and reducing to zero above $328,001. The rebate percentage also varies by age, with higher rebates for policyholders aged 65 to 69 and 70 or over.
Because the rebate is means-tested on combined income, a change in either partner’s income, a pay rise, a new job, or a partner returning to work, can shift your rebate tier without you realising until tax time.
See the ATO’s private health insurance rebate thresholds for the full tiers by age.
4. Only One Main Residence Per Couple Is CGT-Exempt
This is the change that catches out the most couples, especially where each partner owned a property before the relationship began. The main residence exemption from capital gains tax only applies to one home per couple at any given time, even if you and your spouse each separately owned a home before marrying.
If you and your spouse have different main residences at the same time, you must either nominate one property as the exempt main residence for both of you, or split the exemption. If you own 50% or less of the home you nominate, your share is fully exempt. If you own more than 50%, your share is only exempt for half the period you and your spouse held different homes.
See the ATO’s guidance on eligibility for the main residence exemption for how the rule applies to couples.
If you are weighing up keeping, renting out, or selling a property you owned before the relationship, it is worth working through the numbers before you decide. Our rental property deductions guide covers what you can claim if you end up renting one property out instead.
5. Spouse Super Contributions: A Small But Useful Offset
If your spouse earns a low income or is not working, you can contribute to their super and claim a tax offset. For 2026-27, the full $540 offset applies if your spouse’s income is $37,000 or less, phasing out completely once their income reaches $40,000. The offset is 18% of the lesser of $3,000 (reduced for income between $37,000 and $40,000) or the amount you actually contributed. See the ATO’s spouse super contributions page for eligibility.
6. HELP and HECS Repayments Stay Individual
Unlike the Medicare levy surcharge and the private health insurance rebate, compulsory HELP and HECS repayments are calculated on your own individual income, not your combined household income. Getting married does not change your repayment threshold or rate.
Before You Lodge: A Quick Checklist
- Declare your spouse’s income and details on your return, even though you lodge separately.
- Check your combined income against the $210,000 Medicare levy surcharge family threshold if either of you lacks private hospital cover.
- Confirm which property is nominated as your exempt main residence if you and your spouse each owned a home before the relationship.
- Check whether a spouse super contribution makes sense if one of you earns under $40,000.
Why Professional Help Matters
Marriage changes which rules apply on an individual basis and which apply on a combined basis, and it is easy to miss one of these when your circumstances change. ITP Accounting Professionals helps couples work through offsets, surcharges, and CGT decisions together.
Don’t assume nothing has changed just because you still lodge separately. Book a consultation with ITP to check how your relationship status affects your return this year.
Frequently Asked Questions
No. Australia does not have joint tax returns. You and your spouse each lodge separately, but you must declare your spouse’s income and details on your own return.
The ATO treats married, de facto, and same-sex couples the same way, as long as you are in a genuine domestic relationship, regardless of whether you are formally married.
No. It rises to a single combined family threshold, $210,000 for 2026-27, rather than doubling the single threshold for each partner.
Only in a limited way. If you have different main residences at the same time, you generally need to nominate one as exempt for both of you, or split the exemption between the two properties for the period you were apart.
Get Your Combined Position Right
Most of the rules that change with marriage are easy to miss because your return still looks the same as it did when you were single. ITP Accounting Professionals has helped Australian couples navigate these thresholds for decades. If you want a second set of eyes on your combined position, get in touch with your local ITP office before your next lodgement.
Disclaimer: This article provides general information only and is not a substitute for professional tax advice for your specific situation. It reflects current tax law and ATO guidance as at September 2026. Before acting on any of these thresholds, speak with a qualified tax professional who can assess your circumstances.