Fraser Institute News Release: Average Canadian Family Spent $34,154 On Taxes In 2015

The average Canadian family spends more on taxes than on housing, food and clothing combined, finds a new study released by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

The Vancouver-based think-tank estimates that the average bill for income taxes collected by governments was $10,616 in 2015. The second-biggest category was payroll and health taxes, at $7,160, followed by sales taxes at $4,973 and property taxes at $3,832. The other categories include taxes on profits, liquor or tobacco, fuel, natural resources and import duties, totaling $7,573.

The Fraser Institute uses its own “Canadian consumer tax index” to track the tax bill paid by a family with “average income”. The study tracked average spending and tax bills from 1961 to 2015.

In comparison, 3.5 percent of the average family’s income went to taxes in 1961 while 56.5 percent went to basic necessities.

The Vancouver-based think-tank estimates that the average bill for income taxes collected by governments was $10,616. In 2015, the average Canadian family (including single Canadians) earned $80,593 and paid $34,154 in total taxes compared to $30,293 on housing (rent and own), food and clothing combined. In other words, 42.4 percent of income went to taxes while 37.6 percent went to basic necessities.

The study concludes visible and hidden taxes totaled 42.4% of the average family’s annual income, estimated at $80,593. That means Canadians spent more on taxes than the $30,293 or 37.6% of average family income spent on housing, food and clothing last year.