The average Canadian family spent 42.3% of its income on taxes in 2024 — more than on housing, food and clothing combined — according to a new study from the Fraser Institute.The report, Taxes Versus the Necessities of Life: The Canadian Consumer Tax Index 2025 Edition, found that a household earning $114,289 paid $48,306 in total taxes, compared to 35.5% of its income spent on essentials like shelter, groceries and clothing.“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 the study’s co-author.The total tax bill includes both visible and hidden taxes paid to federal, provincial and local governments, such as income, payroll and sales taxes.The study also highlights how tax burdens have grown significantly over time. In 1961, the average Canadian family spent just 33.5% of income on taxes and 56.5% on basic needs. Since then, the total tax bill has risen by 2,784%, outpacing increases in housing (2,129%), food (927%) and clothing (460%).“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.
