A study by the Fraser Institute reveals the average Canadian family spent 43.0 per cent of its income on taxes in 2023, exceeding combined expenditures on housing, food, and clothing.
"Taxes remain the largest household expense for families in Canada," stated Jake Fuss, director of Fiscal Studies at the Fraser Institute and co-author of the report Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2024 Edition.
The study indicates the average Canadian family earned $109,235 in 2023, of which $46,988 was paid in taxes. This translates to 43.0 per cent of their income being directed towards taxes, in contrast to 35.6 per cent spent on necessities.
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The report underscores a substantial shift since 1961, when taxes accounted for 33.5 per cent of the average family's income, compared to 56.5 per cent spent on necessities. Over the decades, taxes have escalated at a much faster rate than other household expenditures. The total tax bill for the average Canadian family has surged by 2,705 per cent, overshadowing the rises in annual housing costs (2,006 per cent), clothing (478 per cent), and food (901 per cent).
The comprehensive tax bill for Canadians encompasses both visible and hidden taxes, including income, payroll, sales, property, carbon, health, fuel, and alcohol taxes, which are paid to federal, provincial, and local governments.
"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.
