Canadians Celebrate Tax Freedom Day on June 19, 2023
— Published on June 19, 2023
- In 2023, the average Canadian family will earn $140,106 in income and pay an estimated $64,610 in total taxes (46.1%).
- If the average Canadian family had to pay its taxes up front, it would have worked until June 18 to pay the total tax bill imposed on it by all three levels of government (federal, provincial, and local).
- This means that Tax Freedom Day, the day in the year when the average Canadian family has earned enough money to pay the taxes imposed on it, falls on June 19.
- Tax Freedom Day in 2023 comes one day earlier than in 2022, when it fell on June 20. This change is due to the expectation that the incomes of Canadians will increase faster than the total tax revenues forecasted by Canadian governments.
- 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 June 6 in Manitoba, while the latest falls on June 30 in Quebec.
- Canadians are right to be thinking about the tax implications of the $47.0 billion in projected federal and provincial government deficits in 2023. For this reason, we calculated a Balanced Budget Tax Freedom Day, the day on which average Canadians would start working for themselves if governments were obliged to cover current expenditures with current taxation. In 2023, the Balanced Budget Tax Freedom Day arrives on June 27.
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