A ghetto tax is a term for an extra cost or expense that people living in poorer neighborhoods face, such as higher prices for basic goods and services. For example, food in a grocery store in a disadvantaged neighborhood may be more expensive than food in a grocery store in a wealthier neighborhood. This is because stores located in lower-income neighborhoods may be limited in the options they can offer and they may have to pay more to keep the store open and safe. This extra cost is like a tax that people living in lower-income areas have to pay, and it’s usually more than people living in wealthier areas.