A new study has found that in 2025 Canadian families spent more on taxes than they did on basic necessities.The study, conducted by the non-partisan think tank the Fraser Institute, found that the average Canadian family spent 41.9% of its annual income on taxes, and just 36% on basic necessities such as food, shelter, and clothing.Last year the average Canadian family made roughly $121,000 but paid close to $51,000 in taxes."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 the Fraser Institute's director of fiscal studies Jake Fuss.The study added up what it calls the "total tax bill" that includes all the taxes a family will pay throughout the year. These taxes include "income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, carbon taxes, vehicle taxes, import taxes, and alcohol and tobacco taxes.".The Canadian Consumer Tax Index is the index that the study uses to track how much the average Canadian family pays in tax per year and has statistics going back as far as 1961.The study shows that, compared to 1961, the amount of money that the average family pays in tax has risen exponentially.Shockingly, the study reveals that "the tax bill of the average Canadian family has increased by 2,928% since 1961."Data also shows that while the price for clothing has remained relatively stagnant, the annual cost of food and shelter has risen significantly..In 2025, while taxes accounted for 41.9% of household expenses, housing accounted for 22.9% and food accounted for 10.9%, leaving just 22.1% left over for saving or other expenses."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 and how much the tax burden has grown relative to other necessary costs they must pay," said Fuss.
