Average Canadian family spent 42% of income on taxes—more than on housing, food and clothing combined

VANCOUVER—The average Canadian family spent 42 per cent of its income on taxes in 2025—more than on housing, food and clothing combined, finds a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“At a time when the cost of living is top of mind across the country, taxes remain the largest household expense for Canadian families,” said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of Taxes Versus the Necessities of Life: The Canadian Consumer Tax Index 2026 Edition.