Is ‘black tax’ family solidarity or a threat to financial freedom?

A parent needs money for household expenses, a younger sibling requires school fees, a relative needs help with medical bills, another wants capital to start a business, while others seek contributions towards family events.

For many young professionals, these requests have become a monthly reality. Economists and financial experts describe the phenomenon as 'black tax'—a colloquial term referring to the expectation that employed family members will provide financial support to parents, siblings and extended relatives who depend on them.

Although it is not a government tax, experts say the financial obligation can reduce an individual's ability to save, invest and build long-term wealth.

The term 'black tax' gained prominence in South Africa, but the practice of supporting parents and extended family members has long existed in many African societies. The expectation is also common in Tanzania, where many households rely on family support because of low incomes, limited social protection and the rising cost of living.

The burden is particularly felt by young people entering formal employment from low-income households. Many find themselves paying siblings' school fees, covering parents' medical expenses, contributing to family events and helping relatives facing financial hardship.

While some view black tax as an obstacle to financial independence, others regard it as an expression of family solidarity and reciprocity that has enabled many households to educate children and cope with financial shocks.

Balancing family obligations and personal goals

Some Tanzanians interviewed by The Citizen said helping relatives is deeply rooted in the country's culture, but acknowledged that the expectation can sometimes make it difficult for young people to achieve their own financial goals.

Rehema Mallya said that since securing her first job four years ago, she has spent a significant portion of her salary supporting her parents and siblings, delaying her dream of building a house.

"Every month someone needs school fees, another requires medical treatment or food. I cannot abandon them because they sacrificed to educate me. But the truth is that, to this day, I have barely managed to build any meaningful savings. Sometimes it feels as though you're working for the whole family rather than for your own future," she said.

John Mhando said supporting relatives remains an important part of Tanzanian culture, but some families place unrealistic expectations on the first person to secure formal employment.

"Once you get a job, every problem lands on your doorstep. Some relatives stop looking for solutions because they believe you'll take care of everything. That's when support turns into dependency, and eventually even the helper becomes overwhelmed," he said.

However, Asha Msuya said the practice should not be viewed solely as a burden because many families have progressed through mutual support.

"If my elder brother had not paid our school fees after our father died, we would not be where we are today. The problem is not helping one another; it is when one person is expected to shoulder everyone's responsibilities while others simply wait for assistance," she said.

University graduate Victor Nyoni, who is searching for a job, said family expectations often begin before young people secure employment.

"The moment you graduate, everyone assumes you'll find a job immediately and begin supporting the family. That creates enormous pressure. Sometimes it pushes young people to accept any job available just to meet family expectations," he said.

Experts urge financial planning

Economist Felix Masawe said supporting relatives is an important aspect of many African societies, but it should be guided by the financial capacity of the person providing assistance.

"When a young person spends most of their income supporting relatives without a proper financial plan, they postpone investment, fail to save and may even borrow to meet other people's needs. In the end, they risk remaining financially vulnerable," he said.

Economist Restituta Madoshi said the issue should also be viewed from the perspective of household economic development.

"If an entire family depends on one person for many years, progress is likely to be slow. Assistance should empower others to become financially independent instead of encouraging long-term dependence," she said.

She added that financial literacy should begin within families so that every member learns the importance of saving and investing rather than relying solely on relatives whenever financial challenges arise.

Financial analyst Gerson Msemo said many young people struggle to balance family obligations with building their own financial future.

He said some resort to borrowing to meet family expectations, increasing their financial risks.

"Some people take loans to pay relatives' school fees, contribute to weddings or cover medical expenses even though their salaries cannot support those obligations. People need to be honest about what they can realistically afford.

"Supporting parents and relatives is not wrong. The challenge begins when one person becomes responsible for solving every family problem. Without clear boundaries, it becomes difficult to save, invest or prepare for unexpected events," he said.

Impact on mental wellbeing

Psychologist and social affairs counsellor Loveness Bigwa said the pressure of supporting relatives can also affect young people's mental wellbeing.

"Young people are expected to support their parents and relatives while also building their own families, buying homes and saving for the future. When those responsibilities exceed their financial capacity, they can affect mental health and personal relationships," she said.

Sociology lecturer Mathew Mhagama said the culture of supporting one another remains valuable but should adapt to today's economic realities.

"Our society is built on solidarity, and that is one of our greatest strengths. However, we should not reach a point where one individual becomes the main source of financial support for an entire extended family. That can discourage others from seeking solutions to their own challenges," he said.