What is the singles tax and how can you beat it?
Written and accurate as at: Aug 14, 2025 Current Stats & Facts
The reality of being single is it often comes with hidden costs that those who’ve partnered up don’t have to deal with. Utilities, rent, car costs – these might be manageable for multi-person households but they can be punishing if you’re living on your own.
The ‘singles tax’ — as these extra economic pressures have come to be known — can suck a lot of the joy out of solo living. But going it alone doesn’t have to mean falling behind on your finances.
The unspoken cost of being single
Of course, the singles tax isn’t an actual tax. It’s just an observation that single people miss out on economies of scale that couples or multi-person households enjoy.
Fixed or semi-fixed costs – like electricity, internet, car rego and streaming subscriptions – stay more or less the same whether there’s one person using them or two. But with an extra person to split those bills, the cost per head drops significantly.
There are plenty of other perks too. Multi-person households can buy groceries in bulk without worrying about items going to waste. And there are tax advantages for married or de facto couples who are able to structure their finances in a particular way.
How much more do single Aussies pay?
Not being able to split everyday expenses can take its toll on your budget. But just how much more can singles expect to pay than couples?
According to the Australian Bureau of Statistics (ABS), the average one person household spends $2,835 each month, while couples spend $4,118. While the monthly outlay for couples is greater, the per person cost comes to just $2,059.
That means single Aussies are paying an extra $776 each month – or $9,312 each year – compared to someone who’s able to split costs with their partner.
And the burden goes beyond daily expenses. When it comes to finding a rental or getting approved for a mortgage, it can be difficult getting in real estate agents’ or lenders’ good books without that second income on an application.
How to beat the singles tax
We don’t want to sugarcoat it – handling expenses on your own when the cost of living is relentless can be tough. But that’s not to say there aren’t ways to reduce the strain on your wallet. Here are just a few strategies that might come in handy.
1. Find a housemate
A shared living arrangement can instantly cut your rent and utility bills in half and provide you with some company to boot. This might involve finding a housemate to move into an extra room you have or seeking out a new living space altogether.
2. Track your finances
These days, online shopping, contactless payments and Buy Now, Pay Later have taken a lot of the friction out of spending money. While that can be convenient, it’s made sticking to a budget more challenging than ever.
Track your finances for a month or two and try to identify areas where you can cut back. Keep an eye out for budget leaks too. These are the subtle ways we spend money without thinking, like letting unused subscriptions renew or grabbing takeout a few times too many when we don’t feel like cooking.
3. Compare your options
Your mortgage, insurance and utilities will be among your largest expenses, but have you made sure you’re not paying more than you need to? Some quick research online can open your eyes to cheaper offers from competitors, and you could potentially switch over or use it as leverage to negotiate a better deal.
4. Shop smarter for groceries
Groceries are obviously a necessity, but that doesn't mean everything that makes its way into your trolley is essential. To cut down your weekly grocery bill, it might help to plan your meals ahead of time, use seasonal ingredients (which tend to be cheaper), and freeze meats and veggies so you can buy in bulk.
5. Consider a second job
It won’t be an option for everyone, but if you have the time it might be worth taking on extra work. This could involve freelancing, putting your hand up for a weekend shift, or looking for ways to turn your hobby into a side hustle.