Why Do Single People Pay More Taxes?

Why Do Single People Pay More Taxes? Single filers may face higher tax liabilities because they enter higher tax brackets at lower income thresholds, receive a smaller standard deduction than joint filers, and may not qualify for certain tax credits that favor families or joint returns. These systemic disadvantages in the U.S. tax code mean that single filers are often financially penalized simply for being unmarried.

Tax Filing Status Drives Everything

Your filing status determines your standard deduction, credit phaseouts, and eligibility for tax benefits. According to the IRS, you may file as ‘Single’ if you are unmarried, divorced, or legally separated as of December 31, and you do not qualify for another filing status such as Head of Household or Qualifying Surviving Spouse.

This may sound straightforward, but the implications for your taxable income and federal income taxes are significant.

Filing Status Influences:

• Standard Deduction: In 2025, single filers will receive $15,750. Married couples filing jointly will receive $31,500, double the amount. Also, Heads of Household receive $23,625.
• Tax Brackets: Single filers enter each higher tax bracket sooner. For example, the 22% tax rate starts at $48,475 for single individuals and $96,950 for joint filers.
• Credit Eligibility: Credits, like the Child Tax Credit and Child and Dependent Care Credit, are more accessible to those with dependents or a spouse. If you have dependents, check our guide on tax benefits for single parents.

Quick Comparison: Single vs. Married Filing Jointly

Sources:

• U.S. Congress, One Big Beautiful Bill Act, H.R. 1, 119th Cong.
• IRS, Internal Revenue Bulletin: 2024-40
• IRS, Child Tax Credit

This table clearly visualizes the financial benefits of a joint return. Married filers enjoy broader phaseout levels, which can lower their effective tax rate and increase savings.

5 Key Reasons Single People Pay More in Taxes

1. Narrower Tax Brackets

Single filers hit a higher tax bracket with a lower adjusted gross income (AGI). The IRS sets these thresholds, and they are usually double for married people.

2. Lower Standard Deduction

Single individuals shield a smaller portion of their income from taxes.

3. Limited Credit Access

Single filers reach the phaseout thresholds of tax credits faster than joint filers.

4. Lower Thresholds

Single filers report and pay taxes on their income individually. In contrast, married couples filing jointly are taxed on their combined income, which often gives them access to higher income thresholds for deductions and credits and can lower their overall tax liability.

5. Higher Effective Rate

Mid-income single filers may pay a higher effective tax rate than married couples with the same combined income, due to narrower tax brackets and phaseouts of credits at lower income levels.

Common Scenarios That Trigger a Bigger Tax Bill

• Single, no dependents, no HOH: You’re single, renting, and earning $60K—no kids, no deductions. Welcome to the Singles Tax Club.
• Mid-level income without itemizing: You make just enough to not qualify for aid, but not enough to benefit from deductions. Your tax bill stings.
• Recently divorced: Your ex gets the house, the kids, and the credits. You get higher federal income taxes.
• Single parents without HOH status: You’re supporting your child, but the IRS doesn’t recognize it—no HOH status means no extra savings.

Can Singles Reduce Their Tax Burden? Yes—Here’s How:

Being single doesn’t mean you’re out of options. There are potential ways to lower what you owe:

• Claim all deductions: Think student loan interest, IRA contributions, retirement savings, and charitable donations
• Use tax-advantaged accounts: Max out your 401(k), HSA, or Roth IRA
• Review your HOH eligibility: Especially if you support a dependent, even partially (IRS, Publication 501)
• Work with a certified financial planner: Find credits and other ways to optimize your filing that can potentially lower your tax liability.

Learn more about Top Tax Hacks for Single Filers.

Real-World Example: Meet Lisa

Lisa is a 35-year-old tech worker earning $85,000 and living in a high-cost city. She rents, has no kids, and contributes modestly to her 401(k). Her taxable income pushes her into the 22% tax bracket. Because she doesn’t have dependents, she isn’t eligible for family-related tax credits like the Child Tax Credit or Earned Income Tax Credit — benefits that parents or some married couples may qualify for. Despite earning a solid income, her federal income taxes each year are frustratingly high, and her refund? Underwhelming.

Bonus: What Needs to Change?

This isn’t just about math—it’s about fairness. Many single filers pay more during tax time simply because of how the system is structured.

Some unmarried individuals face higher effective tax burdens than married couples, particularly when tax credits for dependents and income splitting come into play. These differences aren’t always visible in the base tax brackets but emerge when you factor in real-life credits and deductions.

This penalty eats into financial freedom in an era of rising rent, inflation, and living costs. It's especially unfair to unmarried adults and divorced individuals rebuilding their financial lives.

Even some married couples may face a so-called "marriage penalty" depending on their combined income, but the broader structure generally favors those who file jointly.

We need a tax code that reflects modern life circumstances, not outdated assumptions. That means revisiting the fairness of joint vs. single filing and adjusting for realistic expenses and responsibilities.

Learn Why the Tax Code Is Broken for Singles.

Estimate Your Tax Bill Now

Use our Free Tax Estimator Tool to clearly understand your income tax liability, whether single, married, or other filing status.