Average Canadian family spent 42.3% of income on taxes--more than on housing, food and clothing combined

VANCOUVER, BC, July 22, 2025 /CNW/ - The average Canadian family spent 42.3 per cent of its income on taxes in 2024—more than on housing, food and clothing combined, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"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 and co-author of Taxes Versus the Necessities of Life: The Canadian Consumer Tax Index 2025 Edition.

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.

In 2024, the average Canadian family (with an income of $114,289) paid $48,306 in total taxes. In other words, the average family spent 42.3 per cent of its income on taxes compared to 35.5 per cent on housing, food and clothing combined.

This is a dramatic shift since 1961 when the average Canadian family spent much less of its income (33.5 per cent) on taxes than the basic necessities (56.5 per cent). Taxes have grown much more rapidly than any other single expenditure for the average family.

And since 1961 the average Canadian family's total tax bill has increased nominally by 2,784 per cent, dwarfing cost increases in housing (2,129 per cent), food (927 per cent) and clothing (460 per cent).

"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," Fuss said. 

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The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Montreal, and Halifax and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit www.fraserinstitute.org

SOURCE The Fraser Institute