Why Do Single People Pay More Taxes? Factors That Affect Single Filers

Many single taxpayers notice they often owe more in taxes than their married counterparts, even with similar incomes. This difference stems from tax laws that result in higher taxable income and fewer deductions or credits for single filers. While this may seem unfair, the system is designed to provide financial relief for families and dual-income households.

Several factors contribute to this disparity, including differences in filing status, deduction limits, and eligibility for tax benefits. Understanding these elements can help single filers navigate their tax obligations and potentially reduce what they owe.

Filing Status and Bracket Thresholds

Tax brackets often push single filers into higher tax rates at lower income levels compared to joint filers. The IRS sets different income thresholds for each filing status, determining how earnings are taxed.

For 2024, single filers enter the 24% tax bracket at $95,375, while married couples filing jointly don’t reach that rate until their combined income exceeds $190,750. This means two individuals earning $95,000 each pay more taxes if filing separately than they would as a married couple.

At higher incomes, the gap widens. The 32% bracket starts at $182,100 for single filers but doesn’t apply to joint filers until their combined income surpasses $364,200. Married couples with similar earnings benefit from wider brackets that keep more of their income taxed at lower rates, while single filers have no way to access these expanded thresholds.

Standard Deduction Restrictions

The standard deduction reduces taxable income and simplifies filing. In 2024, single filers can claim a $14,600 standard deduction, while married couples filing jointly receive $29,200—exactly double. This allows joint filers to shield more income from taxation.

Additional standard deductions are available for taxpayers 65 or older or blind. In 2024, a single filer in these categories receives an extra $1,950, while each spouse in a married couple filing jointly qualifies for $1,550. A married couple where both spouses meet the criteria could claim a total increase of $3,100, further widening the tax liability gap.

Itemizing deductions instead of taking the standard deduction requires significant qualifying expenses, such as mortgage interest, medical costs exceeding 7.5% of adjusted gross income, or state and local taxes (SALT) up to the $10,000 cap. Because many of these deductions are based on percentage thresholds, single filers must reach the same expense levels as married couples to benefit, despite having only one income. This makes itemizing less practical for individuals.

Limited Eligibility for Certain Credits

Many tax credits favor families and lower-income households, leaving single filers with fewer ways to reduce their tax burden.

The Saver’s Credit, which incentivizes retirement contributions, is one example. In 2024, a single filer must earn $36,500 or less to qualify for any portion of this credit, while married couples filing jointly can earn up to $73,000 and still receive benefits. Because the income limits for joint filers are exactly double those for single taxpayers, a married couple with two incomes can often remain eligible while a single filer with a comparable salary phases out entirely.

The American Opportunity Tax Credit (AOTC), which offsets higher education expenses, follows a similar pattern. In 2024, this credit phases out at a modified adjusted gross income (MAGI) of $80,000 for single filers, with full ineligibility at $90,000. For married couples filing jointly, the phase-out range is $160,000 to $180,000. Two individuals earning $85,000 each would be completely ineligible if filing separately, but if married, they could still claim a partial credit.

The Premium Tax Credit (PTC), which helps lower health insurance costs through the federal marketplace, also becomes less accessible to single filers. The credit is available to those earning between 100% and 400% of the federal poverty level (FPL), which in 2024 is $15,060 for a single person. A single filer loses eligibility once their income exceeds $60,240, while a married couple can earn up to $81,760 before losing access to premium subsidies. This structure results in single individuals paying significantly more in health insurance premiums compared to married couples with similar earnings.

Impact of Dependents and Personal Exemptions

Single filers without dependents often face a higher tax liability because they lack access to tax benefits associated with claiming qualifying individuals. Taxpayers who can claim children or other dependents may be eligible for deductions and credits that reduce taxable income or directly lower their tax bill.

The Child Tax Credit (CTC) provides up to $2,000 per qualifying child under 17, with up to $1,600 refundable in 2024. A single parent with two children could receive a significant tax offset, while a single filer with no dependents would not have access to this relief.

Beyond the CTC, taxpayers supporting dependents who are not their children—such as elderly parents—may qualify for the Credit for Other Dependents (ODC), which offers up to $500 per dependent. While this credit is nonrefundable, it reduces the amount of tax owed. Additionally, having dependents can enable eligibility for head of household filing status, which provides a larger standard deduction and more favorable tax brackets compared to single filers. Without dependents, individuals must file as single, missing out on these advantages.

Phase-Out Rules Affecting Single Filers

Many tax benefits decrease as income rises, but single filers often hit phase-out thresholds sooner than married couples. This results in higher effective tax rates, as deductions and credits diminish more quickly for individuals.

The student loan interest deduction, which allows taxpayers to deduct up to $2,500 in interest payments, is one example. In 2024, this deduction begins to phase out at a MAGI of $75,000 for single filers and disappears at $90,000. Married couples filing jointly, however, don’t begin losing this deduction until their MAGI reaches $155,000, with full phase-out at $185,000. A single filer earning $85,000 would only receive a partial deduction, while a married couple with a combined income of $150,000 could still claim the full amount.

Retirement account contributions are also affected by phase-outs, particularly for those contributing to a traditional IRA while covered by a workplace retirement plan. In 2024, single filers with a MAGI above $77,000 begin losing the ability to deduct IRA contributions, with full ineligibility at $87,000. Married couples filing jointly don’t see phase-outs begin until their MAGI reaches $123,000, with full ineligibility at $143,000. This structure makes it harder for single individuals to take full advantage of tax-advantaged retirement savings, as they lose access to deductions at lower income levels.