'Canadians may question whether or not we’re getting good value for our money'
The average Canadian family spent 42.6 per cent of their income on taxes in 2019 – more than they did for housing, food and clothing costs combined, according to a report released by the Fraser Institute.
Last year, the average Canadian family earned $91,535 and paid $38,963 in taxes. Meanwhile, they spent $33,178 for the basic necessities listed above, equivalent to 36.2 per cent of their income.
“Taxes remain the largest household expense for families in Canada,” said Jake Fuss, economist at the Fraser Institute. “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.”
In comparison, the average Canadian family spent 33.5 per cent of their income on taxes in 1961, while spending 56.5 per cent for necessities that same year, according to the report.
The total tax bill for Canadians includes visible and hidden taxes (paid to the federal, provincial and local governments) such as income, payroll, sales, property, carbon, health, fuel and alcohol taxes.
Moreover, since 1961, the average Canadian family’s total tax bill has increased by 2,226 per cent, dwarfing increases in annual housing costs (1,641 per cent), clothing (793 per cent) and food (663 per cent), according to the institute.
The federal income tax rates for individuals in 2020 are:
- 15 per cent on the first $48,535 of taxable income, plus
- 20.5 per cent on the next $48,534 of taxable income (on the portion of taxable income over 48,535 up to $97,069), plus
- 26 per cent on the next $53,404 of taxable income (on the portion of taxable income over $97,069 up to $150,473), plus
- 29 per cent on the next $63,895 of taxable income (on the portion of taxable income over 150,473 up to $214,368), plus
- 33 per cent of taxable income over $214,368.