Tax Freedom Day

— May 21, 2021
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This year, Tax Freedom Day is Monday, May 24. If you had to pay all your federal, provincial and municipal taxes up front, you would give government every dollar you earned from January 1st to Tax Freedom Day, when Canadians finally start working for themselves. In 2021, the average Canadian family (with two or more people) will pay 39.1 per cent of its annual income in taxes, including income taxes, payroll taxes, health taxes, sales taxes, property taxes, fuel taxes, carbon taxes and more.

— May 19, 2020
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May 19, 2020 is Tax Freedom Day, which represents the total yearly tax burden imposed on Canadian families: If you had to pay all your taxes up front, you’d give government every dollar you earned before May 19. This year, the average Canadian family will pay 37.7 per cent of its income in taxes. Ordinarily Tax Freedom Day comes much later in the year—last year it fell on June 8th—but, an earlier Tax Freedom Day this year is nothing to celebrate, since it’s not the result of governments reducing taxes. Instead, Canadian families have been significantly impacted by the economic shutdowns in response to COVID-19. When the economy slows and incomes decline, Canadians are bumped into lower income tax brackets and pay a smaller percentage of income in taxes. Canadians have also reduced their spending, which means less sales taxes are being paid.