(LifeSiteNews) — Canadian families are spending 42 percent of their income on taxes, more than food and shelter costs.
According to a study published July 22 by the Fraser Institute, in 2024, the average Canadian family spent 42.3 percent of its income ($48,306) on taxes, surpassing expenditures on necessities like food, shelter, and clothing combined (35.5 percent).
“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 report co-author and Fraser Institute director of fiscal studies Jake Fuss.
According to The Canadian Consumer Tax Index, 2025 Edition, the total tax bill has risen by 2,784 percent since 1961, outpacing increases in shelter (2,129 percent), food (927 percent), clothing (460 percent), and the Consumer Price Index (925 percent).
Taxes include income, sales, property, and other levies, with the top 20 percent of income-earning families paying 56.9 percent of total taxes.
Canadian Taxpayers Federation (CTF) Federal Director Franco Terrazzano condemned the high tax rates, telling LifeSiteNews, “It’s absolutely bonkers that Canadians are paying so much tax.”
“Canadians pay too much tax because politicians and bureaucrats waste too much money,” he said.
“The best and easiest way for governments to make all aspects of life more affordable is to stop taking so much money from Canadians in the first place,” Terrazzano explained. “Canadians need governments to cut spending and cut the outrageous tax burden.”
The study further broke down how much the average Canadian family, with an income of $114,255, will spend on taxes in a year.
“The Canadian tax system is complex and there is no single number that can give us a complete idea of who pays how much,” the authors wrote. “In order to calculate the total tax bill of the average Canadian family, we add up all the various taxes that the family pays to federal, provincial, and local governments.”
The largest component is income tax, which is about 31.2 percent of the tax or $15,085. Next is payroll taxes and health taxes, accounting for 21.4 percent or $10,319 of a family’s taxes.
Sales taxes represent 14.1 percent of this amount, equating to $6,812, and cover taxes like GST, PST, or HST on goods and services. Profit taxes represent 13.5 percent of the total, amounting to $6,534, and are often indirectly passed to consumers.
Property taxes make up 8.5 percent, or $4,111, and are levied by municipalities on residential properties. Alcohol, tobacco, entertainment, and excise taxes constitute 3.4 percent of the tax bill, totaling $1,640, while fuel and vehicle taxes contribute 3.0 percent, or $1,470.
Natural resources taxes account for 1.4 percent, equaling $657, and other miscellaneous taxes comprise 2.9 percent, or $1,403.
The total tax bill comes to $48,306 or 42.3 percent of the average family’s income.
For Canadians wondering how 42.3 percent of their income is spent, the Liberal government, under Prime Minister Mark Carney, recently renewed nearly $400 million COVID shot contracts with Pfizer and Moderna.
Additionally, Carney recently promised $1.5 million in taxpayer funds for LGBT “pride” parades. Ahead of the election in April, Carney also promised another $150 million in funding for CBC, on top of the $1.4 billion the outlet already receives annually.