ADHD Tax: The Hidden Cost of Executive Dysfunction

Have you ever forgotten to cancel a free trial and been charged for a subscription you didn’t want? Missed a bill payment and racked up late fees? Left your packed lunch at home and ended up buying something twice as expensive or bought something on impulse that you later regretted?

Sound familiar? For those of us with ADHD, these extra expenses linked to forgetting, putting things off, or spending on impulse can quietly drain your wallet. This is known as the ADHD Tax.

What is ADHD tax?

ADHD tax refers to the hidden financial cost that comes with living with ADHD. This comes not because of the diagnosis itself, but because of how symptoms like impulsivity, forgetfulness, and difficulty planning play out in everyday life. These challenges often lead to unnecessary expenses. It might be small things like late library fines or forgotten subscriptions, but for many people, these aren’t just one-offs. They’re part of an ongoing pattern tied to how the ADHD brain works. Over time, those little costs can snowball into a significant financial burden.

Understanding where you spend the most money due to your ADHD is the first step to managing and reducing this financial burden. These can be different for each person, but here are some of the most common examples of how people with ADHD end up spending additional money:

• Subscriptions: Forgetting to cancel free trials or recurring memberships

• Returns: Missing the time frame for returning items such as library books, clothes, and bills, which can lead to fines or not getting money back.

• Impulsive spending: Making impulsive purchases or buying things you don’t need.

• Losing items: Paying for lost items like wallets or keys

• Savings: Struggling to consistently save money due to disorganisation or lack of long-term planning

• Budgeting Difficulties: Difficulty tracking expenses and sticking to a budget, leading to overspending or underestimating how much money you’re actually spending.

The financial impact of ADHD doesn’t stop at extra expenses. It can affect income, too. A study found that adults with ADHD earned 30% less on average than their non-ADHD siblings. This income gap may result from difficulty with executive functioning at work, trouble with applications, interviews, or navigating career advancement or burnout from masking or overcompensating. Overall, the estimated cost of ADHD tax is estimated to be £1600 per year.

Why does this happen?

The answer lies in the way the ADHD brain is wired, particularly in how it regulates dopamine, a key neurotransmitter involved in motivation, reward processing, and decision-making. In people with ADHD, dopamine levels tend to be less consistent. This can make it harder to feel motivated by long-term goals, or to get satisfaction from completing smaller, less exciting tasks, e.g. budgeting or cancelling a free trial. On top of that, ADHD also affects executive functioning, the mental skills we use to plan, prioritise, organise, and follow through. That’s why everyday financial tasks like tracking spending, organising bills, cancelling unused subscriptions, or keeping to a budget can become overwhelming, confusing, or exhausting.

When these things pile up, it’s easy to internalise the blame. Many people with ADHD describe feeling lazy, irresponsible, or incompetent when in reality, their brains are working with a different set of wiring. It’s also common to put off tasks for reasons that go beyond procrastination. You might wait until you feel “ready,” aim for the perfect conditions or become so overwhelmed by the thought of starting that you avoid it entirely. This isn’t a personal flaw; it’s a response to cognitive overload and difficulty with task initiation, both of which are common in ADHD.

Once you understand that these patterns are not your fault but part of how ADHD affects your brain, you can start to shift the way you approach tasks. With the right strategies and support, it’s possible to reduce the impact of the ADHD tax and feel more confident in how you manage your time, money, and energy.

Moving forward and taking control of your finances with ADHD

The ADHD Tax is real, but it's not inevitable. Here are ADHD-friendly ways to manage or reduce its impact:

• Automate What You Can: Set up direct debits for bills so that you can’t accidentally forget, as well as schedule calendar reminders

• Impulse-Proof Your Spending: Online shopping makes it easy to buy on impulse. Try leaving non-essential items in your cart for 24 hours before checking out. This delay gives you time to decide if you really want or need the item.

• Try to simplify decision-making tasks: This can include using the same grocery list or meal plan weekly, so that you don’t end up buying randomly.

•  Block Distractions at the Source: Use browser extensions to block shopping sites or social media during vulnerable hours. Turn off marketing emails or push notifications that tempt spontaneous spending.

•  Budget Your Way: Try new ways of budgeting and try to keep track to become more aware of your spending habits

•  Get Support: You don’t have to manage it alone. ADHD-informed financial coaches or therapists can help build realistic, shame-free strategies tailored to how your brain works.

A final note 

The ADHD Tax isn’t about laziness or carelessness; it’s about living in a world not designed for ADHD brains. Understanding where the costs come from is the first step toward making them more manageable. With the right strategies and support, you can reduce the financial pressure and find ways to manage your money in a way that works for you. For more help with navigating ADHD challenges, check out our educational articles or book an ADHD assessment. We’re here to support you every step of the way.