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.
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 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.
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.
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.
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?)
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.
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:
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.