The average Canadian family spent 42.3% of its income on taxes in 2024, according to a new study published by the nonpartisan Fraser Institute. The percentage spent on taxes is greater than the 35.5% allocated to housing, food and clothing combined.
Last year, the average Canadian family (with an income of $114,289) paid $48,306 in total taxes. The total tax bill for Canadians includes visible and hidden taxes (paid to the federal, provincial and local governments) including income taxes, payroll taxes and sales taxes.
Taxes have grown much more rapidly than any other single expenditure for the average family. The new study determined that the average Canadian family’s total tax bill since 1961 has increased nominally by 2,784%, greater than the cost increases in housing (2,129%), food (927%) and clothing (460%).
“At a time when the cost of living is top of mind across the country, taxes remain the largest household expense for Canadian families,” said Jake Fuss, director of fiscal studies at the Fraser Institute. “While Canadians can decide for themselves whether or not they get good value for their tax dollars, they should understand how much they pay in taxes each year.”
