As Canadians face higher costs for everyday necessities, a new study says taxes continue to make up a major share of household expenses.
The Fraser Institute found the average Canadian family spent 42% of its income on taxes in 2025. The typical family earned $121,111 and paid $50,721 in total taxes.
That was more than the family spent on housing, food and clothing combined, according to the study.
The study found the tax burden has remained around 42% to 45% of household income since the 1970s, after universal health care was introduced across Canada.
In 1974, the average family earned $12,500 and paid $5,429 in taxes, or about 43% of its income.
Since then, the typical household’s tax bill has increased by 834%, while shelter costs have risen 1,106%. Food costs increased 471% and clothing costs rose 207%.
The Fraser Institute also noted that government deficit spending can delay some tax costs, meaning today’s tax burden does not reflect all future costs.
The study’s authors said Canadians should understand how much they pay in taxes and how that burden compares with other essential expenses.
