Study: Canadian Families Now Spend More on Taxes Than Necessities
The Fraser Institute said taxes now take 41.9% of the average family’s income, outpacing spending on food, shelter and clothing.
- The Fraser Institute's 2026 Canadian Consumer Tax Index reports the average Canadian family paid $50,721 in taxes in 2025, consuming 41.9% of total income and exceeding combined spending on food, shelter, and clothing.
- Since 1961, the average family's tax bill has surged 2,928%, a faster climb than any other household expense. In 1961, taxes claimed just 33.5% of income, while basic necessities consumed 56.5%.
- Personal income taxes comprised the largest portion of the total tax bill at 31.7%, followed by payroll and health taxes at 22.3%. Profit, sales, and property taxes accounted for most of the remaining burden.
- Jake Fuss, director of fiscal studies at the Fraser Institute, noted taxes remain the largest household expense. Fuss urged governments to reduce personal income and business taxes to improve economic growth.
- Finance Minister François-Philippe Champagne is soliciting ideas for the fall 2026 budget as the Carney government leans on its 2025 tax-relief record, which trimmed the bottom federal personal income tax rate.
18 Articles
18 Articles
Canadians spending more on taxes than basic necessities
Subhead:Canadians are spending more money on taxes than necessities like housing, food and clothing combined, according to a new study. Sheila Gunn Reid and Tamara Ugolini reacted to the bloated bureaucracy on Thursday's Rebel Roundup.# YouTube-embed:934BPJ93CrQ A Fraser Institute analysis shows the average Canadian family with an income of $121,000 spent nearly $51,000 — almost 42% of their income — on taxes in 2025. That is more than they spen…
Canadian Families Spent More on Taxes Than Basic Needs in 2025, Study Finds
Canadians’ tax payments last year were higher than their total spending on housing, food, and clothing combined, a new study suggests. Canadians dedicate roughly 42 percent of their income to taxes and approximately 36 percent goes to pay for essential needs such as food, housing, and clothing, according to the latest report from the Fraser Institute. “At a time when the cost of living is top of mind across the country, taxes remain the largest …
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