« Maybe money can buy happiness after all | Main | Rogers Centre charges 4th-highest beer price in all of baseball »

May 01, 2021

Income taxes make up less than a third of total annual taxes: report

So, yesterday was tax deadline day, and you’re all done with duties for the year, yeah?

90357_accounting_calculator_1Well, perhaps not so fast. While income taxes, what we presume make up the bulk of taxes we pay each year, have come and gone, a new report shows the lion’s share of our annual tax pain is still to come.

In fact, according to the Fraser Institute, more than 70 per cent of the average Canadian family’s tax burden comes from sources other than income taxes.

Where else are we getting taxed most? Click on to find out.

By the Fraser Institute’s Tax Simulator, the average Canadian family’s income rolls in at an average clip of $74,233 each year. It’s a modest benchmark, but gives us a way to round out just where our tax dollars go, nonetheless.

*Bing: How to best spend your tax refund

According to Fraser’s figures, just under 30 per cent (29.7 per cent, or $9,137 using the above income) of the average Canadian family’s income goes to income taxes, the largest chunk but less than even a third of what we pay in total taxes each year.

The rest breaks down like so:

--Social security, medical and hospital taxes (20.6 per cent)
--Sales taxes (15.4 per cent)
--Property taxes (11.4 per cent)
--Profits tax (10.2 per cent)
--Liquor, tobacco and other excise taxes (5.6 per cent)
--Other, natural resources and import duties (4.6 per cent)
--Auto, fuel and motor vehicle license taxes (2.5 per cent)

Add it all up and 41.5 per cent of the average Canadian family’s income goes to taxes each year. Using the above $74,233 income figure, that’s $30,792.

When you consider all your tax burdens, does it add up to more – or less – than 41.5 per cent of your annual income?

By Jason Buckland, MSN Money



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...