Marriage Tax Allowance: How to Save on Tax as a Couple
If you’re married or in a civil partnership in the UK, you could be entitled to a tax break worth up to £252 a year. This tax benefit, known as the Marriage Allowance, allows one partner to transfer a portion of their unused personal allowance to the other. This simple adjustment can help couples reduce their annual tax bill and is available to millions of eligible households.
Here’s everything you need to know about how it works, who can apply, how much you could save, and how to claim.
What Is the Marriage Tax Allowance?
The Marriage Allowance is a government scheme that lets one spouse or civil partner transfer £1,260 of their personal allowance to their partner. The personal allowance is the amount of income you can earn before you start paying income tax—currently £12,570 for the 2025/26 tax year.
If one partner earns less than the personal allowance and the other is a basic rate taxpayer, the lower earner can transfer part of their allowance. This can reduce the higher-earning partner’s tax by up to £252 per year.
Who Is Eligible for Marriage Tax Allowance?
To qualify for Marriage Allowance in 2025/26, you must meet the following criteria:
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You’re married or in a civil partnership (not just living together)
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One of you earns less than £12,570 a year (including pensions, savings, or part-time work)
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The other earns between £12,570 and £50,270 (or up to £43,662 in Scotland)
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You were both born after 6 April 1935 (those born earlier may qualify for the Married Couple’s Allowance instead)
If all three conditions are met, you can apply online to have £1,260 of the lower earner’s personal allowance transferred to the higher earner.
Example:
Emma earns £9,000 a year from a part-time job. Her husband Liam earns £30,000 annually. Because Emma is not using her full personal allowance, she can transfer £1,260 of it to Liam, lowering his tax bill by up to £252.
How Much Can You Save?
The amount you save is fixed and based on the basic rate of tax (20%). This means that:
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20% of £1,260 = £252
So even though the full personal allowance is £12,570, you’re only transferring £1,260 of unused allowance. This results in a direct reduction of the higher-earning partner’s tax bill.
You’ll continue to receive the Marriage Allowance every year automatically, as long as your circumstances remain the same.
Tax Year Comparison Table
Below is a summary of Marriage Allowance benefits across recent tax years:
| Tax Year | Transferable Amount | Maximum Tax Saving |
|---|---|---|
| 2023/24 | £1,260 | £252 |
| 2024/25 | £1,260 | £252 |
| 2025/26 | £1,260 | £252 |
Note: The allowance has remained frozen for several years, though future increases could follow inflation if thresholds are reviewed.
How to Apply for Marriage Tax Allowance
The easiest way to apply is through the official HMRC Marriage Allowance portal. The lower-earning partner needs to submit the application. Here’s how:
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Visit the official Marriage Allowance page
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Sign in using your Government Gateway ID or create one if needed
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Provide personal information about you and your partner (including National Insurance numbers)
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Submit your application
You’ll get confirmation if your application is successful. HMRC will adjust your tax code and the partner receiving the allowance will see a reduction in their tax bill. The change can also be backdated up to four tax years, meaning potential savings of over £1,000 if you’ve been eligible but didn’t claim previously.
Can You Backdate Your Marriage Allowance Claim?
Yes, HMRC allows backdating your Marriage Allowance claim by up to four previous tax years. As of the 2025/26 tax year, you may still be able to claim for:
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2021/22
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2022/23
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2023/24
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2024/25
If eligible for all four, plus the current year, you could receive over £1,200 in total tax savings.
How Is the Marriage Allowance Paid?
Once HMRC processes your application:
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The higher earner will receive a new tax code reflecting the allowance
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The adjustment will apply via PAYE (for employees)
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For self-assessment taxpayers, the benefit is included as a reduction in the annual tax bill
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Any backdated payments may be issued via cheque or bank transfer
Changes in Circumstances
If your income, relationship status, or tax situation changes, you must inform HMRC. Common reasons to cancel or update your Marriage Allowance include:
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Divorce or separation
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One partner passes away
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One partner becomes a higher rate taxpayer
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Both partners earn above the personal allowance
You can stop the Marriage Allowance at any time through your personal tax account.
Common Misunderstandings
Many couples assume they’re ineligible because:
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They live together but are not married — this disqualifies them
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They both earn below the personal allowance — in this case, there’s no tax saving to be had
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The higher earner is in the higher tax band — this means Marriage Allowance no longer applies
Married Couple’s Allowance vs Marriage Allowance
These two tax benefits are often confused. Here’s the key difference:
| Feature | Marriage Allowance | Married Couple’s Allowance |
|---|---|---|
| Who qualifies? | Couples born after 6 April 1935 | Couples where at least one was born before 6 April 1935 |
| Maximum tax benefit | £252/year | Up to £1,260/year (depending on income) |
| How it works | Transfers unused allowance | Reduces tax bill through a percentage deduction |
If you or your spouse were born before 6 April 1935, check the Married Couple’s Allowance guidance for larger savings.
Frequently Asked Questions
Can we both benefit from Marriage Allowance?
No. The allowance is only transferred from the non-taxpayer to the taxpayer. It cannot be shared both ways.
Do I need to apply every year?
No. Once claimed, Marriage Allowance renews automatically unless you cancel or your eligibility changes.
Will it affect our benefits?
Marriage Allowance does not affect Universal Credit, Child Benefit, or other means-tested benefits.
Final Thoughts
The Marriage Tax Allowance is a simple and often overlooked way for couples to reduce their tax bill. If you or your partner earn below the personal allowance threshold, it makes sense to transfer unused tax-free income. With a potential saving of £252 per year—and even more if backdated—it’s worth checking your eligibility today.
Apply directly through the HMRC Marriage Allowance portal and start saving as a couple.
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