Exciting tax form.
VANCOUVER — The average Canadian family spent 42 per cent of its income on taxes in 2025, more than it spent on housing, food and clothing combined, according to a new study from the Fraser Institute.
The Vancouver-based public policy think-tank estimates a Canadian family earning an average income of $121,111 paid $50,721 in taxes last year.
Taxes accounted for 42 per cent of family income, compared with 36 per cent spent on housing, food and clothing combined.
The figures are contained in the Fraser Institute’s Taxes Versus the Necessities of Life: The Canadian Consumer Tax Index 2026 Edition.
The institute’s calculation includes taxes paid to federal, provincial and municipal governments, including income and payroll taxes, sales and property taxes, fuel and vehicle taxes, import taxes and taxes on alcohol and tobacco.
“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, the institute’s director of fiscal studies and a co-author of the report.
The study also compares the tax burden with household expenses dating back to 1961.
It estimates the average Canadian family spent 33.5 per cent of its income on taxes in 1961, compared with 56.5 per cent on housing, food and clothing.
The institute says the average family’s nominal tax bill has increased 2,928 per cent since 1961.
Over the same period, it estimates housing costs increased 2,349 per cent, food costs rose 952 per cent and clothing costs increased 526 per cent.
Fuss said Canadians can decide whether they receive good value for the taxes they pay, but should understand how their tax burden compares with other household expenses.
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