Living alone can at times seem like the highest form of freedom, but at the same time comes with much cost. In America, singles bear a heavy financial burden for merely opting to live on their own. This extra cost, commonly known as the “singles tax,” has apparently escalated to as much as $7,562 a year. The amount differs from place to place, with some states far more expensive than others. So, if you’re single and living alone, here is what you ought to know concerning the financial burden you could be carrying.
What is the singles tax and why does it exist?
The singles tax refers to the additional amount you pay for housing when you live alone instead of splitting rent or mortgage payments with a partner or roommate. Since living costs continue to rise across the U.S., this financial gap has widened.
- Rent and housing costs: Living alone means paying full rent or mortgage costs without sharing expenses with another person.
- Utilities and bills: Electricity, internet, water, and other household expenses are not split, making the cost per person much higher.
- Tax implications: Some tax benefits, such as the standard deduction for married couples, make it more financially beneficial to file jointly rather than as a single individual.
Which states have the highest singles tax?
The singles tax is not the same everywhere. Some cities and states have much higher housing costs, making it even more expensive to live alone.
- New York: Singles in New York City face the highest singles tax, paying an estimated $20,100 extra per year.
- California: High rent prices in cities like San Francisco and Los Angeles lead to singles paying thousands more than those with roommates.
- Massachusetts: Boston has moved up in the rankings, now being the fourth most expensive city for singles, with typical rents over $3,000 per month.
- Washington, D.C.: With expensive rent and a high cost of living, singles in the nation’s capital pay significantly more than those who share housing expenses.
How much more do singles pay compared to couples?
A recent analysis from Zillow found that on average, singles pay an extra $7,562 per year in housing costs compared to those who split expenses. In some cities, the difference is even more dramatic.
- Sharing a one-bedroom apartment: Couples or roommates who split rent save an average of $15,123 per year.
- Additional cost of living: Singles are also responsible for all grocery, utility, and entertainment expenses, which can make budgeting more difficult.
How can you reduce the cost of living alone?
If you prefer living alone but want to cut costs, there are ways to make it more affordable:
- Look for smaller apartments: A studio or micro-apartment can be cheaper than a full one-bedroom.
- Consider moving to a lower-cost area: Some cities offer a much lower singles tax than others.
- Negotiate rent: Some landlords may be open to reducing rent if you sign a longer lease or pay upfront.
- Use financial tools: Zillow’s rental affordability calculator can help you determine what is within your budget.
