A move to individual taxation in Jersey could cost the Treasury millions of pounds per year in lost revenue.
The Treasury announced plans to reform the tax system so that islanders are taxed independently, rather than assessing couples on their combined income.
Islanders will be able to choose whether they are taxed under the current or new system in the period until the new system is fully implemented, though no date for this has yet been set.
However, it has been confirmed that a compensation scheme to prevent lower-income couples being disadvantaged by the new regime will cost £4 million per year when the changes are introduced.
At a public hearing, the Corporate Services Scrutiny Panel also heard that some higher income couples are likely to benefit from the changes
The move to the new system of taxation will also be reliant on a change in computer system which will require between £1.25 million and £1.5 million of spending in administration costs.
The updates will be the first changes to the tax law since 1928.