The “pink tax” gouges prices for women's products and necessities, contributing to wealth disparity over time. Learn about relevant legislation, reporting unfair pricing practices and groups fighting gender-based pricing.
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By Anja Solum, CEPFAC
Anja Solum, CEPF
Data Journalism Manager
Anja Solum is a certified educator in personal finance and the Data Journalism Manager at MoneyGeek. For over six years, she has produced data analyses and studies for agency and in-house teams across multiple verticals. Solum holds a bachelor's degree in communication arts from Florida International University. She's passionate about using data to tell compelling, informed stories that empower readers.
Edited by Rae OsbornRO
Dr. Rae Osborn is a MoneyGeek content editor with over seven years of editing experience and over 20 years of experience in publishing and writing science content. She also works as a science researcher, writer and editor and a professional reviewer for Science Reviews and Advances in Entomology.
MoneyGeek is dedicated to providing trustworthy information to help you make informed financial decisions. Each article is edited, fact-checked and reviewed by industry professionals to ensure quality and accuracy.
Updated: March 15, 2024
AC
By Anja Solum, CEPFAC
Anja Solum, CEPF
Data Journalism Manager
Anja Solum is a certified educator in personal finance and the Data Journalism Manager at MoneyGeek. For over six years, she has produced data analyses and studies for agency and in-house teams across multiple verticals. Solum holds a bachelor's degree in communication arts from Florida International University. She's passionate about using data to tell compelling, informed stories that empower readers.
Edited by Rae OsbornRO
Dr. Rae Osborn is a MoneyGeek content editor with over seven years of editing experience and over 20 years of experience in publishing and writing science content. She also works as a science researcher, writer and editor and a professional reviewer for Science Reviews and Advances in Entomology.
MoneyGeek is dedicated to providing trustworthy information to help you make informed financial decisions. Each article is edited, fact-checked and reviewed by industry professionals to ensure quality and accuracy.
Updated: March 15, 2024
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The "pink tax" refers to the higher prices often charged for products marketed towards women and gender-nonconforming individuals. Such additional costs can reduce lifetime savings, disproportionately impacting marginalized communities and intensifying existing societal inequalities.
Awareness of the pink tax can help you make more informed financial choices, keeping more money in your wallet.
The "pink tax" isn't an actual government tax but a gender-based price increase. When similar products are sold – a pink version for women and a blue version for men – the pink often has a higher price tag. This leads to women paying more for the same or similar products than men. According to a 2020 report by the California Senate Committee on Judiciary and Senate Select Committee on Women, Work and Families, women in California spent around $2,381 more per year than men did on the same products and services, which added up to almost $188,000 over the course of a lifetime.
The term "pink tax" gained traction in the mid-1990s with the passage of the Gender Tax Repeal Act in California, which outlawed price discrimination in services. The debate on this issue intensified following a study from the New York City Department of Consumer Affairs. This study analyzed 794 products from 91 brands and found that women's products, were on average, 7% more expensive than similar products for men.
The pink tax significantly contributes to the financial burden women face, particularly in times of rising inflation. This form of discriminatory pricing undermines women's economic power and perpetuates financial inequality. The effects are even more pronounced for women of color, who face compounded challenges due to existing racial and gender pay gaps.
The pink tax affects a broad spectrum of products and services, especially those labeled as "feminine." Among various sectors analyzed, personal care stands out with the highest pink tax for women, showing an average cost increase of 13% compared to men's products. Tariff disparities further this issue. According to a 2018 U.S. International Trade Commission (USITC) study, women's clothing was taxed at 15%, higher than the 12% for men's clothing.
Below is a comparative table of common products that underscores the price gap, though these figures (primarily from 2015) may vary with current market conditions.