Canadians spend more on taxes than food, shelter and clothing combined: study

by Quinn Patrick, True North Wire

The average Canadian spent more on taxes last year than they did on basic amenities such as shelter, groceries and clothing combined, according to a new report.

“Taxes remain the largest household expense for families in Canada,” said study co-author Jake Fuss, director of fiscal studies at the Fraser Institute.

The average Canadian family earned an income of $109,235 in 2023 but were also forced to fork over $46,988 in total taxes, meaning that 43% of income is lost to taxation, higher than the 35.6% Canadians spend on basic necessities.

The report, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index 2024 Edition, noted the dramatic spike in taxation over the past 60 years.

The average Canadian family only spent 33.5% of its income on taxes in 1961 and 56.5% on basic necessities.

However, taxes have rapidly outpaced any other single expenditure for the average Canadian family, with the average family tax bill having increased by 2,705% since 1961.

Annual housing costs increased over that time period as well, but remained 700% lower than the increase in taxation.