Presenting data from 1961 through 2024, the latest Canadian Consumer Tax Index (2025 Edition) was recently released. This report provides an illuminating look at how the tax burden on the average Canadian family has evolved over the past few decades.
Since 1961, the average tax bill Canadian families manage has risen by 2,784%. This tax increase outpaces key necessities: shelter costs rose by 2,129%, food expenses climbed by 927%, and clothing costs grew by 460%. The Consumer Price Index reports that the broader cost of living, which includes transportation, food, education, and personal care, within this timeframe rose by 925%.
In 2024, the average income for a Canadian family was $114,289 and 42.3% of this income, or $48,306, went to taxes. This marks a significant shift since 1961, when the average family earned $5,000 and paid $1,675 in taxes, or approximately 33.5% of their income. Meanwhile, spending on fundamental needs, like food and shelter, now constitutes 35.5% of income, compared with 56.5% in 1961.
This data shows how the share of income directed towards taxes has grown relative to essential household expenditures over the past six decades. We thought you would find these numbers intriguing, especially when you consider broader conversations occurring about the evolving financial landscape here in Canada.
Understanding these long-term trends can also help you make informed decisions about budgeting, saving, and investing, ensuring your financial plan remains resilient as the years pass. To consult with us about your financial strategy, contact us at BlueRock Wealth Management today.