Living solo can be liberating, but it often comes with a financial catch. Fixed expenses such as rent, electricity, internet and insurance are the same whether there is one person in the household or two. Couples and multi-person households get to share the load, but singles often carry the full cost themselves.
This so-called “singles tax” isn’t a real tax, but it highlights the extra pressure many Australians face when they live alone. On average, single households spend significantly more per person than couples, simply because they miss out on the economies of scale that come with sharing.
How much more do singles pay?
The numbers tell the story clearly. The average one-person household in Australia spends around $2,835 each month, while couples spend about $4,118. Once you break that down per person, singles are paying about $2,835 each compared to $2,059 in a couple.
That means living solo can cost an extra $776 a month — or more than $9,000 a year — compared to someone who can split expenses with a partner.
The impact also goes beyond day-to-day living costs. For renting or applying for a mortgage, having only one income can make it harder to secure approvals or favourable terms.
Where the extra costs show up
- Utilities and subscriptions: Whether you’re powering one person or two, the bills are much the same. Couples effectively halve their per-person cost.
- Groceries: Buying in bulk is cheaper, but not always practical when cooking for one. This can lead to higher grocery bills and more food waste.
- Housing: Rent and mortgages fall more heavily on single-income households, and lenders often see dual incomes as lower risk.
How to lighten the load
Even if you’re financially comfortable, it makes sense to look for ways to manage the extra costs of solo living. A few practical steps may help:
Consider sharing arrangements
Taking in a housemate or choosing a co-living option can immediately reduce your biggest costs like rent and utilities.
Track your spending
Cashless payments and online shopping can make it easy to overspend without realising. Tracking your outgoings for a month or two may highlight areas where you can cut back with little sacrifice.
Review your providers
From mortgages and insurance to electricity and internet, reviewing your providers once a year may uncover opportunities to save or negotiate better deals.
Shop smarter
Planning meals ahead, buying seasonal produce, and freezing bulk purchases are all ways to reduce grocery costs.
Boost your income if possible
A side hustle, freelance work or an extra shift here and there may provide breathing room and accelerate your longer-term goals.
Being single doesn’t have to mean being financially stretched. With the right strategies, you can still stay in control, enjoy the lifestyle you want, and make steady progress towards your bigger goals.
Note: This article was originally published on Advisely with the title “What is the singles tax and how can you beat it?” on 14 August 2025.
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This information provided in this article is general advice only and has been prepared without taking into account your own objectives, financial situation or needs. Before making a financial decision based on this advice, you must consider whether it is appropriate in light of your own needs, objectives, and financial circumstances, and where relevant, obtain personal financial, taxation or legal advice. Where a financial product has been mentioned, you should obtain and read a copy of the Product Disclosure Statement (PDS) prior to making any decisions about whether to acquire a product.