Single and broke? It's not your fault – the 'singles tax' is real

Holidays, dinners out, rent, you name it – you pay more if you’re single. Sophie Hallwright on the frustrating fact of The Singles Tax.

Firstly, as a single gal, I’d like to 100 percent validate the feelings of financial frustration that being single can spark. You are hot, single, broke and unfortunately falling victim to the “singles tax” which, before you laugh, is a very real thing. On the one hand you don’t want to come across as the bitter old cat lady, but on the other, you’re sick of having to spend more just because you don’t have a plus-one! I get it.

At the risk of sounding like I don’t have a romantic bone in my body, one of the main incentives for getting married back in the day was to gain financial perks. Of course marriage has evolved, but still – combining assets and splitting expenses with another makes it much easier to get ahead. The singles tax may not be a tax you pay like GST or income tax, but in invisible ways it can increase the price of rent, utility bills, food and socialising. And in some places, like the UK, it can literally mean missing out on tax advantages.

No, that idea is incredibly outdated. But with the cost-of-living crisis in full force, it’s clear that the world is still designed to benefit couples. Living alone for example, instead of with a significant other can almost double your expenses. According to the IRD’s Household Economics Survey, a person living in Auckland spent on average $333 per week on rent, compared to only $207 each if they were in a couple (and those figures have no doubt increased since the survey was done in 2019).

Then there's the need to buy individually all the items you'd share in a couple (a sofa, a toaster, a blender, a bed). The price of heating a room costs the same whether it contains one person or two. However, possibly the most annoying thing is that single tax doesn’t just stretch to the essentials, it permeates your social life too.

Let’s talk about group holidays. You’re going away with eight friends (all coupled up of course). There are four bedrooms and a common area. Of course all of the couples get a proper room each, but you (being single) are given the less-than-chic foldout couch to make yourself at home on. This would all be fine if you weren’t PAYING THE SAME AS EVERYONE ELSE.

Or it’s Christmas, and the list of who you need to get presents for is getting out of control. Not only do you have your brother and sister, but you have your sister-in-law, brother-in-law and their combined brood of seven children to buy for... Before you know it you’ve had to buy SO many presents you could start a small gift shop. Not to mention that each of those couples buys you one present in return, the cost of which THEY SPLIT WITH THEIR PARTNER. It’s hard not to have Scrooge-like feelings in this scenario.

When it comes to a night out there's bringing a bottle of wine to dinner (couples go halves, you go whole), Ubers, parking, a babysitter (if you’re a single parent). The ways in which the cost of socialising doubles for a single person are multiple.

For those reading this who are very much loved up, the singles tax may be invisible or seem insignificant to you and your sexy beau (happy for you, promise). But being aware of it may just help save some friendships. As someone who is single, I feel this deep in my bones and being around couples who refuse to recognise the financial impacts of being alone, grinds my gears. This is a brutal stat – but just in case you need some more proof on the matter – did you know that one in three in the US admit they’ve stayed in a relationship because of its financial benefits? That’s a lot of people staying coupled up, purely because it makes sense financially.

If you’re single – firstly, I want to acknowledge that life is more expensive for you. But being financially set is never worth the cost of staying in an average relationship.

Take pride in your independence – it brings all kinds of bonuses not outlined here. But don’t be afraid to speak up in situations where the situation is financially unfair. As I said, you may think that speaking up has bitter cat lady vibes (read: INCEL if you’re a male), but the couples around you are probably blind to your situation (rather than deliberately fleecing you) and they just need some gentle reminding that you might need to share an Uber or, say, go in with them on a joint gift for a mutual friend. And let them know point blank that a holiday is simply not a holiday if you don’t get a room and a queen-sized bed of your own.

For more on saving, budgeting and investing, head to The Curve.

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