A new study has revealed Canadians spent more on taxes than basic needs in 2025. According to the Canadian Consumer Tax Index by the Frasier Institute, Canadians spent approximately 42 per cent of their income on taxes. Approximately 36 per cent was spent on basic necessities, like food, shelter, and clothes. Frasier compared these numbers to 1961, where 33.5 per cent of the average income went towards taxes, while 56.5 per cent went to needs. In 1961, the average income was $5,000 with a total tax bill of $1,675. In 2025, the average income was $121,111, with a tax bill of $50,721. “Taxes have grown much more rapidly than any other single expenditure for the average Canadian family: Expenditures on shelter increased by 2,349 per cent, food by 952 per cent, and clothing from 526 per cent from 1961 to 2025,” the study read. “The 2,968 per cent increase in the tax bill has also greatly outpaced the increase in the Consumer Prince Index (946 per cent), which measures the average price that consumers pay for food, shelter, clothing, transportation, health and personal care, education, and other items.” The full study is available on Frasier’s website.
