The Single Tax

Bachelors and bachelorettes take note: how flying solo can cost you more (and less)

Let’s get one thing out of the way: being single is not a financial crime. But it can feel like one when you're doing your tax return, splitting rent with nobody, and buying a $7 lettuce entirely for yourself. Welcome to the world of the "singles tax" – not an official line item on your IRD tax return statement, but a very real cost for New Zealanders navigating life on one income.

Single person households are on the rise. People are marrying later, divorce rates remain high, and an ageing population means more people live alone in older age – especially women who tend to live longer. Many people also make a conscious decision to remain single, seeing it as a sign of independence and empowerment.

This is part of a global trend, with singledom increasing in Europe, North America and Asia.

Being single can be empowering, fulfilling, and flexible. It can also be financially frustrating. But it's not all doom and gloom — there are upsides too. Here's what the singles tax is, and how to make the most of your solo status.

1. The Singles Tax Is Real (Even If It Isn’t Official)

While there's no line in any budget labelled "singles tax," its effects show up in everyday life.

Obviously, this isn’t an official levy paid to anyone specifically. It simply refers to the higher costs single people face compared to couples or families.

Shared costs are simply cheaper. If you're single, you’ll nearly always pay more per person for housing, utilities (think broadband, power and so on), groceries, transport, and even travel. According to a recent study by the Australian Institute of Family Studies, single-person households spend 92% more per person on housing than couples. New Zealand data reflects similar cost pressures: Stats NZ shows that single-person households consistently have higher living costs per person compared to households with more occupants.

Reports from around the world paint a similar picture. In the United States, research by real estate marketplace Zillow found singles pay on average US$7,000 more annually for housing, compared to those sharing a two-bedroom apartment.

Why? A single person renting a one-bedroom apartment must bear the full cost, while a couple sharing it can split the rent and other costs like power bills. Fixed costs for a house or apartment like electricity, water and internet bills often don’t increase by much when you add an extra user or two. Living alone means you pay more.

It Gets Worse for Solo Parents

Compared to couples with children, single parents spend about 19% more per person. While government support mechanisms such as taxpayer-funded childcare subsidies exist, many single parents find them insufficient, especially if they work irregular hours.

2. Being Single Can Be More Expensive in Subtle Ways

We don’t always notice the creeping costs. Dining out? A table for one means you’re not sharing starters or mains (and no one to split the dessert with — cruel). Weekly groceries? There’s a reason things are cheaper in bulk. Buying in bulk as a single often leads to waste, or worse, eating hummus for every meal until you question all your life choices.

Even insurance can carry a premium. Some providers offer couples discounts on life and health cover, and travel insurance is often cheaper per person when purchased as a duo.

And let’s not forget retirement planning. If you're single, there's no shared superannuation strategy. You need to rely on your own KiwiSaver, your own emergency fund, and your own long-term plan.

Financial and other risks can increase when you’re single, too. For example, in a couple, if one person experiences a job loss, if you’re both earning then at least you’ve still got one earner to keep food on the table. The same doesn’t apply if you’re flying solo!

Solo travellers, for example, may encounter something called a “single supplement” – paying the cost to utilise accommodation or travel products and services designed for two people, such as a hotel room.

Sorry, Bachelorettes

The singles tax disproportionately impacts women, who are more likely to live alone than men.

This can compound existing financial pressures such as taking career breaks to raise a family, so can leave them with lower retirement savings.

For older women, the singles tax adds another layer of difficulty to maintaining financial security.

There are unique challenges for single men, too, who may lack the same access to family-oriented subsidies and workplace flexibility. Single men may also face societal expectations to spend more on dating, socialising, and expensive toys (jet ski, anyone?)

3. But It's Not All Bad News: The Upsides of Financial Freedom

Before we start letting the pity party get too out of hand, let’s flip the script. Being single also offers some serious financial advantages.

• You have full control. Want to spend your bonus on a trip to Japan instead of a new washing machine? No problem. No financial negotiations, no compromise, no "we need to talk about the budget."
• Budgeting is simpler. You don’t need to merge bank accounts, track shared expenses, or have awkward money chats about who forgot to pay the power bill or why so many online shopping packages are showing up at the front door.
• You can make bold financial decisions. Investment in a passion project? Career move to a new city? House hack with flatmates instead of buying a family home? You have the flexibility to structure your finances entirely around your own goals.
• Lifestyle inflation is easier to resist. Many couples gradually increase their lifestyle expenses to match their combined income. As a single person, it's easier to stick to your financial principles and not be pulled into the "let's get the nicer car" conversation.
• As a bachelor or bachelorette, you might also report a sense of financial independence and control over your money compared to coupled counterparts.

4. Strategies to Beat the Singles Tax

Whether you're loving the single life or simply between chapters, you don’t have to accept the singles tax without a fight. Here are a few tips to take control:

• House-share creatively. Consider renting with flatmates or joining a co-living arrangement. Not only does this save on rent and utilities, but it can also provide a social upside.
• Automate your savings. Set up automatic contributions to KiwiSaver, a contingency fund, and a "fun fund." Just because you’re solo doesn’t mean your savings plan should be.
• Negotiate better deals. You might not get a couples’ discount, but you can still ask for loyalty benefits or bundled packages. Don’t be afraid to shop around or haggle.
• Find your spending rhythm. If you value experiences, budget for travel. If you love your space, invest in making your rental feel like home. Being single means your money gets to reflect your priorities, not anyone else’s.
• Consider professional advice. A financial adviser can help you map out a plan that's tailored to your individual needs — and if we may humbly say so, this is where Become Wealth excels. We're here to support New Zealanders making smart, independent money moves. Get in touch to book a no-obligation initial consultation.

5. Conclusion: Accept the Perks, Outsmart the Costs

Yes, there’s a singles tax. And yes, it can feel like you’re paying a premium for not settling down with someone whose idea of fun is joint budgeting spreadsheets. But there’s also power in being the CEO of your own financial life.

So, embrace the upside. The freedom. The focus. That you can eat cereal for dinner without judgment. Make smart moves, spend intentionally, and invest in your future — whatever shape it takes.

Being single isn’t a disadvantage — it’s a different starting line. Accept the advantages and outsmart the disadvantages. We work with people from all walks of life, relationship status notwithstanding. If you’re single and want a plan for financial independence or wealth creation that works for you, let’s talk.