The price of independence: How the singles tax drains solo bank accounts

Renee Sylvestre-Williams, author of 'The Singles Tax', joins BNN Bloomberg to discuss her book which shares finance tips for single people.

Single professionals working in corporate environments often face inflated costs in taxes, housing, retirement and travel, footing the bill for every expense.

Renee Sylvestre Williams, author of the Singles Tax, said the current tax system benefits couples with programs not available to singles.

“There’s income sharing, spousal RRSP support and all those things,” Williams told BNN Bloomberg in an interview. “If you are single, you do not benefit from that.”

According to the latest Statistics Canada census data, 15,457,000 people reported a marital status of single.

The singles tax refers to the financial burden people face due to a lack of cost-sharing benefits that come with living with a partner or family.

A spousal Registered Retirement Savings Plan (RRSP) allows couples with significant income disparities to balance retirement savings and lower overall household tax bills, according to TD Bank.

The higher-earning spouse contributes to the plan and receives a tax deduction while the lower-earning partner makes investment decisions. They are taxed at a lower rate when funds are withdrawn.

“You can maximize your tax deductions, you know, medical expenses, maximize your RRSPs, if you can, but we can’t split income,” said Williams.

Housing devours paycheques

Single people face the burden of covering entire costs of housing, Williams wrote in her book. According to the Royal LePage 2026 Market Survey Forecast, the national aggregate home price will increase one per cent year-over-year to around $823,00 in 2026.

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A Rentals.ca survey showed 34 per cent of renters spent more than half of their income on rent. Couples can split bills and qualify for bigger mortgages while singles can not.

Singles require more savings before investing

Williams advises single people to have a team of financial professionals to help plan investments. She said solo earners may need a larger emergency fund to cover costs before investing in the markets.

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“It might be a case of… you need a slightly bigger emergency fund,” said Williams. “You might need more liquidity for things that you need, then you might need more downside protection as you get closer to retirement to protect your investments.”

Inflated travel costs

Solo travellers can experience extra costs when booking accommodations. Williams, in her book, writes single individuals could pay, “a single supplement” or extra charge.

According to Expedia Cruises, a single cruise traveller must pay a single supplement ranging from 110 per cent to 200 per cent of the double occupancy rate.