![[Canada] Taxes are still families’ biggest single expense](http://gpa.net/cdn/shop/articles/bigstock-family-children-and-home-conc-96663833_eeba7fd3-4351-4268-a28f-7c793a90071a_1200x.jpg?v=1753928498)
The rising cost of living continues to be a challenge for Canadian households and although inflation and housing costs have an impact, an even larger expense is making it hard for families to make ends meet. Taxes. And new research has revealed that the total has steeply risen, Fraser Institute reports.
Canadians pay many different taxes to local, provincial and federal governments, including income taxes, property taxes, sales taxes and payroll taxes. Some, such as payroll taxes, are quite visible (you can see how much personal income tax is taken off your payslip) others are more hidden.
According to a new Fraser Institute study, in 2024 the average Canadian household (including single people) paid $48,306 in total taxes. With the average family’s total cash income standing at $114,289 in 2024, this means each household paid 42.3 per cent of their incomes in taxes levied by all levels of government.
That percentage is reportedly far higher than families used to pay, even after adjusting for inflation. In fact, the average Canadian family paid just $17,166 in total taxes in 1961 (adjusted for inflation), representing 33.5 per cent of its total income that year. Meaning, from 1961 to 2024, the inflation-adjusted tax bill of the average Canadian family increased by more than 180 per cent.
In 2024, the average Canadian household spent $12,925 on food, $25,199 on shelter and $2,435 on clothing. Therefore, the average family spent a larger share of its income on taxes (42.3 per cent) than on basic necessities (35.5 per cent).
In short, taxes are the largest single expense for Canadian families.
Canadians do receive value from their tax dollars in the form of government services so the total tax bill is the price Canadians pay for government services. But according to a 2023 poll, nearly half (44 per cent) of Canadians felt they received “poor” or “very poor” value from the services they receive from all levels of government.
This month, a new 2025 poll reportedly found similar results, with more Canadians stating that they receive “bad” value rather than “good” value for money from all levels of government.
Source: Fraser Institute
(Links via original reporting)
The rising cost of living continues to be a challenge for Canadian households and although inflation and housing costs have an impact, an even larger expense is making it hard for families to make ends meet. Taxes. And new research has revealed that the total has steeply risen, Fraser Institute reports.
Canadians pay many different taxes to local, provincial and federal governments, including income taxes, property taxes, sales taxes and payroll taxes. Some, such as payroll taxes, are quite visible (you can see how much personal income tax is taken off your payslip) others are more hidden.
According to a new Fraser Institute study, in 2024 the average Canadian household (including single people) paid $48,306 in total taxes. With the average family’s total cash income standing at $114,289 in 2024, this means each household paid 42.3 per cent of their incomes in taxes levied by all levels of government.
That percentage is reportedly far higher than families used to pay, even after adjusting for inflation. In fact, the average Canadian family paid just $17,166 in total taxes in 1961 (adjusted for inflation), representing 33.5 per cent of its total income that year. Meaning, from 1961 to 2024, the inflation-adjusted tax bill of the average Canadian family increased by more than 180 per cent.
In 2024, the average Canadian household spent $12,925 on food, $25,199 on shelter and $2,435 on clothing. Therefore, the average family spent a larger share of its income on taxes (42.3 per cent) than on basic necessities (35.5 per cent).
In short, taxes are the largest single expense for Canadian families.
Canadians do receive value from their tax dollars in the form of government services so the total tax bill is the price Canadians pay for government services. But according to a 2023 poll, nearly half (44 per cent) of Canadians felt they received “poor” or “very poor” value from the services they receive from all levels of government.
This month, a new 2025 poll reportedly found similar results, with more Canadians stating that they receive “bad” value rather than “good” value for money from all levels of government.
Source: Fraser Institute
(Links via original reporting)
