Average Canadian family spent 42.3 per cent of income on taxes in 2024: study

CTV News

5 days ago

A family making breakfast is seen in this stock photo. (Pexels)
The average Canadian family spent 42.3 per cent on income taxes in 2024, according to a new study published by the Fraser Institute.
The tax bill, which includes visible and hidden taxes, totals more than the 35.5 per cent for housing, food and clothing combined.
'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.'
The average Canadian family, which the Fraser Institute says has an income of $114,289, paid $48,306 in total taxes 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,' according to a news release from the Fraser Institute.
The study points out that the average Canadian Family only spent 33.5 per cent of their income on taxes in 1961, with 56.5 per cent going to basic necessities.
The Fraser Institute says the average Canadian family's total tax bill has 'increased nominally' by 2,784 per cent since 1961. Comparatively, housing increased by 2,129 per cent, food by 927 per cent and clothing by 460 per cent.