What is the “Pink Tax”?
Simply: The tendency for goods and services marketed towards women to be more expensive than those targeted at men.
This issue is often explored by researchers in gender inequality and some economists. Researchers have been noticing and analyzing this phenomenon since at least the 1990s.
As we established in our EmpowHERing Negotiations Guide, women still earn 16% less than men on average, just 84 cents for every dollar. (According to Forbes)
For women, paying more for similar goods is simply not in the budget.
Note, the pink tax is NOT the “tampon tax”. That is an actual sales tax.
(The pink tax originally referred to this phenomenon, but the term has evolved over time.)
Now, regarding the pink tax…
Pink Tax Examples
You’ve probably interacted with the pink tax, as there are many different products and services impacted by it, including but not limited to:
- Razors and razor cartridges
- Shaving cream
- Deodorant
- Shampoo and conditioner
- Body wash and soap
- Lotion
- Clothing
- Dry cleaning
- Haircuts
- Toys and accessories
Gender-based price disparities are prevalent in several sectors, but one of the most visible is personal care products. These include, for example, soaps, lotions, razor blades, and deodorants that are marketed specifically to either women or men, as mentioned by the World Economic Forum.
California and New York have passed legislatures on this topic in the past, in an effort to minimize the economic impact on women.
It would be prevalent for us to mention that there are financial products that cost women more, too.
First of all, small expenses like this can add up over time. This might put a strain on your budget or long-term goal savings if you aren’t prepared.
Long-Term Care & Disability Insurance
Women are more likely than men to require expensive long-term care and submit disability insurance claims, so they usually have to pay higher premiums. And since they tend to live longer than men, they pay more for annuities. (According to U.S. News)
Understanding extended care might help shed a light on these difficulties.
Retirement Savings
Regarding retirement savings, specifically, for Gen X, most women have saved a median of $51,000, compared to the $127,000 for men. (According to a 2022 survey by the Transamerica Center for Retirement Studies)
We have a few articles on how women can prepare for retirement, to help you be prepared despite the challenges.
Life Insurance
This one may be more positive and has to do with life expectancy.
Women do get an insurance benefit from their longer life expectancies, however: They usually pay lower life insurance premiums than men. (According to U.S. News)
Less than half of women have life insurance.
According to the Life Insurance Marketing and Research Association (LIMRA), 49% of women reported having life insurance in 2023, still below the 55% rate of men. It's also the fifth consecutive year that women's life insurance ownership has declined.
Assess your life insurance needs, to see if you can use this to your advantage in your financial plan.
Unfortunately, we can’t expect the pink tax to disappear overnight.
Here are a few action items you can do today to help minimize the effects on your personal life:
- Compare gendered items to their “unisex” counterparts when shopping
- Read labels and buy generic when applicable
- Call brands out on social media
- Order online or in bulk
- Know your rights, mostly looking at you California and New York
- Work with a financial advisor, so your money can work for you
- Make more money
Now that last point sounds simple, but we know how difficult it is in practice.
We believe in financial independence for ALL here at Malecki Financial Group, so we put together a guide for you. EmpowHERing Negotiations: A Women's Guide to Salary and Benefits in 2025
Click the link to download the free PDF today and get started on your journey with confidence.