Canadians Celebrate Tax Freedom Day on June 10, 2018
— Published on June 10, 2018
- In 2018, the average Canadian family will earn $115,724 in income and pay a total of $50,464 in taxes (43.6%).
- If the average Canadian family had to pay its total tax bill of $50,464 up front, it would have worked until June 9 to pay the total tax bill imposed on it by all three levels of government (federal, provincial, and local).
- This means that in 2018, the average Canadian family will celebrate Tax Freedom Day on June 10.
- Tax Freedom Day in 2018 is the same as in 2017, because the average Canadian family’s total tax bill is expected to increase at a similar rate this year (3.1%) as its income (3.3%).
- Tax Freedom Day for each province varies according to the extent of the provincially levied tax burden. The earliest provincial Tax Freedom Day falls on May 22 in Alberta, while the latest falls on June 26 in Newfoundland & Labrador.
- The Balanced Budget Tax Freedom Day for Canada arrives on June 17. Put differently, if governments had to increase taxes to balance their budgets instead of financing expenditures with deficits (which are deferred taxes), Tax Freedom Day would arrive 7 days later.