Calgary 
The average Canadian family paid more in 2022 on taxes than it did on housing, food and clothing combined, says Fraser Institute.
Credit: Fraser Institute
Fraser Institute’s latest report, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2023 Edition, finds the average Canadian family allocated 45.3% of its income towards taxes in 2022.
The comprehensive analysis of this study incorporated a myriad of taxes the average family pays. These encompass income, payroll, health, sales, property, fuel, carbon, vehicle, import, alcohol, and tobacco taxes. It’s essential to note that while businesses are directly liable for some taxes, the financial burden inevitably trickles down to ordinary Canadians.
With the average Canadian family’s income pegged at $106,430 in 2022, they disbursed a staggering $48,199 in taxes. When juxtaposed with the expenditure on basic necessities, which stood at 35.6%, the extent of tax expenses becomes evident.
Credit: Fraser Institute
“Taxes remain the largest household expense for families in Canada,” said Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of the report.
Historically, this represents a monumental shift. To put it into perspective, in 1961, taxes consumed just 33.5% of the average family’s income, with basic necessities requiring a much heftier 56.5%. This denotes that over the decades, tax expenditures have soared at an unprecedented rate, outpacing any other individual household costs.
Credit: Fraser Institute
Furthermore, a deep dive into the data illustrates the vastness of this increase. Since 1961, the total tax bill for the average Canadian family has surged by 2,778%. In comparison, housing costs rose by 1,880%, food by 870%, and clothing by 654%.
In essence, the study underscores the burgeoning financial burden of taxes on Canadian households.
“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,”
Fuss said in a news release.
