Are Canadian Families Paying More in Taxes Than on Basic Necessities? Study Sparks Debate
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A new Canadian study suggests that the average family paid more in taxes in 2025 than it spent on housing, food and clothing combined, putting renewed focus on the financial pressures facing households amid high living costs.
According to the study released Thursday by the Fraser Institute, the average Canadian family earned approximately $121,111 in 2025 and paid about $50,721 in total taxes, equivalent to 42% of its income.
By comparison, the study estimates that families spent approximately 36% of their income on housing, food and clothing combined.
The calculation is not limited to personal income tax. It includes a broader range of taxes paid directly or indirectly by households, including income, sales and property taxes, among others.
The findings come as everyday expenses continue to take up a significant share of household budgets. The latest available Statistics Canada household spending data show that shelter, transportation and food are the three largest categories of household consumption. Shelter alone accounted for 32.1% of consumption spending in 2023, followed by transportation at 15.8% and food at 15.7%.
For families and newcomers building their lives in Canada, the study also highlights a cost that may not always be obvious when preparing a monthly budget: taxes extend beyond deductions visible on a paycheque and are also embedded in many everyday purchases and expenses.
The actual amount paid varies considerably according to income, province of residence, household circumstances and spending.
Still, the study raises a broader question for Canadian households: after taxes and basic living expenses are paid, how much of a family's income is actually left?
