What is the pink tax?

This phenomenon of gender-based pricing is known cheekily as the pink tax. It isn’t actually a tax. Rather, it is a form of price discrimination where products marketed toward women cost more than those marketed toward men. The pink tax commonly affects products such as personal care and healthcare items but can also apply to clothing and toys.

Examples of the pink tax?

On average, women pay 13% more for personal care items than men, according to a 2015 study by the New York City Department of Consumer Affairs. This includes products such as shampoo, conditioner, deodorant, and razors.

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Razors are a common divisor in gender-based marketing: a pack of pink disposable razors marketed toward women costs more than a pack of blue disposable razors marketed toward men, even though the only difference is the color. On average, men’s razor refills cost 11% less than women’s razors—even if the difference is that the former has blue packaging versus purple packaging.

The tampon tax negatively impacts women’s health daily. When certain state governments categorize necessary menstrual hygiene products as a luxury item, women end up paying more. As a result, women are burdened with an additional financial strain, making it harder for them to afford the products they need to maintain their health and hygiene.

How the pink tax affects women’s wallets

What is egregious about the pink tax is that these are necessary personal care products, and they need to be replenished often—so the price increase adds up.

According to a study by the state of California, women can pay an average of $2,300 more per year than men for similar products: over a lifetime, this can add up to tens of thousands of dollars. The California Assembly Office of Research investigated the same issue nearly 30 years earlier, and found out that in 1994, women paid an average of $1,351 more per year for similar products. Clearly, the problem has not only gotten worse due to inflation and increasing prices, but the problem has been around for decades.

In America, women still make less money than men: 77 cents for women for every dollar made by men. This statistic has barely changed in the past 20 years, and is a global phenomenon as well, according to the World Economic Forum’s 2022 Global Gender Gap Report. Women who are living paycheck to paycheck may not have the option to choose cheaper alternatives or to buy products in bulk to save money. This can lead to financial strain and can make it more difficult for women to make ends meet.

How to avoid the pink tax

One way to avoid the pink tax is to do research before making purchases. Look for products that are marketed toward both men and women or products that are marketed toward men but can be used by women as well. Another option is to buy products in bulk or to purchase unisex products to save money.

Fortunately, there’s been increasing efforts to repeal this unofficial tax. Aimed at the companies and retailers who set the prices on these products, many states have passed laws prohibiting this unjust price discrimination. In California, for example, the Gender Tax Repeal Act of 1995 aimed to even the price of services such as dry cleaning, car repair, and haircuts. In New York City, you can call 311 to report gender-pricing discrimination against a retailer. At the federal level, there have been attempts to pass a Pink Tax Repeal Act since 2016.

On a global scale, the United Nations has also acknowledged the issue of gender-based pricing discrimination, calling for women’s economic empowerment from both the pink tax as well as the wage gap.

Overall, the pink tax is a form of gender-based discrimination that affects women’s wallets. By understanding these discrepancies in our regular expenses, we can save money and create smarter budgets for our families, save money each month even on necessities, or weather the effects of inflation.