Pink Tax and Gender-Based Pricing: What Is the Pink Tax?

The pink tax is gender-specific pricing that results in higher costs for products marketed toward women. Identical products marketed for men often have lower prices compared to the women’s versions.

Pink tax products commonly use specific characteristics—such as colorful packaging, fruity scents, and floral designs—to try to appeal to women. While the pink tax affects a wide range of products—including children and adult clothing, toys, and soaps—it also impacts service industries, such as dry cleaners and hair salons.

The pink tax is important because it highlights a form of gender-based price discrimination that negatively affects women’s personal finances. A study from the New York City Department of Consumer Affairs and Worker Protection (DCA) noted women pay seven percent more for similar men’s products on average. These price disparities underscore the financial burden women assume due to paying higher prices for comparable products.

The gender pay gap also exasperates the effect of the pink tax, as women encounter higher prices while making lower salaries. In an attempt to prevent these types of discriminatory tariffs, policymakers have pushed for legislation to combat the pink tax. The Pink Tax Repeal Act and the Gender Tax Repeal Act, which Congresswoman Jackie Speier proposed, are legislative initiatives seeking to ban gender-price disparities.

The pink tax does not include items exclusively meant for women, such as menstrual products; however, pink tax price discrepancies impact a variety of consumer goods. Here are three examples of gender-based pricing due to the pink tax:

1. 1. Dry cleaning services: One of the main services the pink tax impacts is dry cleaning. California’s Assembly Office of Research found more than sixty percent of businesses in some major cities charged more to dry clean a woman’s blouse than a man’s button-down shirt.
2. 2. Haircuts: Hair styling and cutting services are another industry impacted by the pink tax. Women’s haircuts typically have higher prices in comparison to men’s haircuts.
3. 3. Personal care products: Feminine hygiene products—such as body wash, razors, deodorants, shaving creams, and shampoos—have a price markup in comparison to men’s versions. Personal care products often have some of the highest price discrepancies. A study of gender pricing in New York City found women paid thirteen percent more than men for personal care products.

When shopping for consumer products, pay attention to price markups to avoid the pink tax. Consider the following steps the next time you shop:

• Compare prices. Before purchasing a product, compare different prices for the same item in the men’s section alongside those in the women’s section. Depending on the product and its size, you might have to determine the cost per ounce to accurately compare the prices of similar products. In some cases, the price difference might be small; however, over time these differences could add up to be significant.
• Purchase men’s products. When it comes to personal care products, the packaging color and the scent are often the main differences between men’s and women’s products. Consider purchasing products from the men’s department to avoid paying more for specialized women’s versions. Some men’s products have gender-neutral scents that suit any occasion.
• Research gender-neutral brands. Some companies are making an active effort to combat and dispute the pink tax. Research service providers and brands that emphasize fair pricing for men’s and women’s products. You can also research brands that are gender-neutral to avoid discriminatory pricing.

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