income tax

If you think June 9 is too late for Tax Freedom Day, just wait

In 2017, the average Canadian family with two or more people will pay $47,135 in total taxes.

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Summary

  • In 2017, the average Canadian family will earn $108,674 in income and pay a total of $47,135 in taxes (43.4%).
  • If the average Canadian family had to pay its total tax bill of $47,135 up front, it would have worked until June 8 to pay the total tax bill imposed on them by all three levels of government (federal, provincial, and local).
  • This means that in 2017, the average Canadian family will celebrate Tax Freedom Day on June 9.
  • Tax Freedom Day in 2017 arrives one day later than in 2016, when it fell on June 8, because the average Canadian family’s total tax bill is expected to increase at a faster rate this year (2.4%) than the growth in income (2.2%).
  • 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 21 in Alberta, while the latest falls on June 25 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 9 days later.

Canadians spend billions complying with complex personal income tax system

When established in 1917, Canada’s Income Tax Act contained 3,999 words compared to 1,029,042 words today.
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