Canadians Celebrate Tax Freedom Day on June 7, 2016
In 2016, the average Canadian family will earn $105,236 in income and pay a total of $45,167 in taxes (42.9%).
If the average Canadian family had to pay its total tax bill of $45,167 up front, it would have worked until June 6 to pay the total tax bill imposed on it by all three levels of government (federal, provincial, and local).
This means that in 2016, the average Canadian family will celebrate Tax Freedom Day on June 7.
While Tax Freedom Day in 2016 arrives two days earlier than in 2015, when it fell on June 9, there is little to cheer about as the earlier date is not the result of any major tax reductions by Canadian governments. Rather, it is the result of the leap year in 2016, conservative government projections of tax revenues, and weak economies in some provinces.
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 17 in Alberta, while the latest falls on June 14 in Newfoundland & Labrador.
The Balanced Budget Tax Freedom Day for Canada arrives on June 18. Put differently, if governments had to increase taxes to balance their budgets instead of financing expenditures with deficits, Tax Freedom Day would arrive 11 days later.