An analysis shows the share of income paid to government has increased year-over-year
The share of an average Canadian family’s income that is paid in taxes has moved closer to half according to a new analysis.
The Fraser Institute’s analysis reveals that 45.3% of income went to the various tiers of government for both visible and hidden taxes including income, payroll, sales, property, carbon, health, fuel, and alcohol taxes.
Based on figures for 2022 it shows an increase from the 43% spent on taxes in the previous year and continues to exceed the share of income used for housing, food and clothing costs combined at 35.6% which is roughly in line with the previous year.
The average Canadian family’s income was $106,430 in 2022 (up from $99,030 in 2021) while taxes paid totalled $48,199 (up from $42,547 in 2021).
“Taxes remain the largest household expense for families in Canada,” said Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of ‘Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2023 Edition.’
Back to the sixties
Back in 1961, the average family spent around one third of its income on taxes and 57% on essential expenses. Since then, a Canadian family’s total tax bill has increased nominally by 2,778% while annual housing costs have increased 1,880%, food has increased 870%, and clothing has increased 654%.
“Considering the sheer amount of income that goes towards taxes in this country, Canadians may question whether or not we’re getting good value for our money,” Fuss said.
