How ‘The Black Tax’ Affects Intergenerational Wealth Transfer

Many times people feel guilt or shame around how much money they don’t have. For those who have made it professionally and financially, that guilt or shame may not disappear. It may transform into guilt for having too much. The change in financial status may straddle between feelings of pride demonstrated through extravagant purchases or lifestyle upgrades, and a sort of survivor’s remorse. This may prompt feelings of guilt internally, while a simultaneous expectation exists to take care of the financial burdens of those close to them. This is especially true in the Black community in an occurrence referred to as “The Black tax”.

What Is ‘The Black Tax’?

The Black Tax refers to a practice where a successful Black individual supports members of their immediate and extended family financially. Studies link this practice to South Africa however, it is a common occurrence among first generation college graduates and high-income earners in the US who feel obligated to add the financial burdens of members of their families and communities to their own.