In 2024, the average Canadian spent more on taxes last year than they did on basic amenities such as shelter, groceries and clothing combined, according to a study conducted by the Fraser Institute.
“Taxes remain the largest household expense for families in Canada,” said co-author Jake Fuss, the institute’s director of fiscal studies.
The average Canadian family earned an income of $109,235 in 2023 but was also forced to fork over $46,988 in total taxes, meaning that 43% of income is lost to taxation, higher than the 35.6% Canadians spend on basic necessities.
The
report, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2024 Edition, noted the dramatic spike in taxation over the past 60 years.
The average Canadian family only spent 33.5 per cent of its income on taxes in 1961 and 56.5 per cent on basic necessities.
However, taxes have rapidly outpaced any other single expenditure for the average Canadian family, with the average family tax bill having increased by 2,705 per cent since 1961.
Annual housing costs increased over that time period as well, but remained 700 per cent lower than the increase in taxation.
In 1961, the average family paid 33.5 per cent of its income in taxes and 56.5 per cent on necessities. Today, those numbers have flipped. Since 1961, the total tax bill has risen by 2,784 per cent, outpacing increases in food, housing and clothing costs, as well as inflation, which has increased by 925 per cent in that time frame.
Food has increased by 901 per cent and clothing by 478 per cent since 1961.
“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,” said Fuss.
