The ‘singles tax’ costs single Americans $10,470 a year in additional costs
Altman Brothers Real Estate owner Josh Altman discusses the rising cost of California real estate at Varney & Co.
Americans who live alone are paying a five-figure “single tax” amid rising rents across the country, a new analysis finds.
Data from Zillow shows that the average rent for an apartment is currently $1,745 and has risen 30% over the past five years, representing a huge burden for renters who live alone and don’t have one or more roommates to split the bill with.
The premium paid by sole proprietors is called the “singles tax” by Zillow, which found that the national average tax for singles is $10,470 a year.
“If you’re living alone, you’re paying full rent on one income and that can add up quickly,” says Emily Smith, a real estate expert at Zillow. “Apartments often make living alone more accessible, while also providing shared spaces that help people feel connected.”
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New York City had the largest “single tax” in Zillow’s data, reaching $23,400 a year. (Thomas Trutschel/Photothek via Getty Images/Getty Images)
New York City tops the list of places with the highest taxes for singles, as renting a typical Big Apple apartment of $3,900 a month equates to a single tax of $23,400 a year.
San Jose ranked second, with an average rent of $3,248 a month and an individual tax of $19,488 a year. Boston was a close third, with the average rent in the city reaching $3,014 a month and resulting in a single tax of $18,084.
Two California cities rounded out the top five, with San Francisco in fourth place based on average rent of $2,857 and one-person taxes of $17,142, while Los Angeles ranked fifth with monthly rent of $2,648 and one-person taxes of $15,888.
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San Francisco ranked fourth on Zillow’s list with a “single tax” of $17,142 per year. (Photo by Justin Sullivan/Getty Images / Getty Images)
Renters who pair their living arrangement with a partner get what Zillow calls a “couple discount” on being able to split rent bill and utilities and other expenses.
“For renters who choose to live with a partner or roommate, splitting everyday expenses such as rent, utilities and groceries can go a long way in reducing the stress of today’s high cost of living,” said Smith.
Based on the company’s national data, the couple discount amounts to $20,940 in annual rent savings from splitting the bill.
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Los Angeles ranked fifth on Zillow’s list of cities with the highest “single tax rate.” (iStock / Stock)
For example, given the higher single tax rate in cities with the highest rents, a couple in New York City could get a $46,800 rebate instead of the $23,400 single tax rate.
The report noted that the couple’s discount can go a long way in helping renters save on the down payment, with the national couple’s discount of $20,940 being more than half of the 10% down payment for the average US home, according to Zillow data.
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