16 Canada Income Statistics You Shouldn’t Miss in 2021

In recent years, we’ve seen robust growth in employment in Canada. While the COVID-19 pandemic has impacted this momentum, the current job outlook remains broadly optimistic.

The thing is:

Canada’s population is highly educated, and salaries across most industries are competitive. As of 2020, for instance, the average annual salary for full-time employees was around $54,630.  So, it’s not surprising that Canadians have an above-average quality of life, as their income can afford it. 

With that in mind:

Let’s delve deeper into some fascinating Canada income statistics to understand how Canadians are faring in terms of earnings and wellbeing.

Eye-Opening Canadian Income Statistics (Editor’s Choice)

  • About 15.7% of Canadians have an annual income of $100,000 or more.
  • Fully employed Canadians received an average yearly salary of around $54,630, Canada income statistics for 2020 reveal.
  • Canadians owed $1.7 in credit market debt for every dollar of household disposable income.
  • Canadian families and unattached individuals have a median income of $62,900 after taxes as of 2019.
  • The average CEO of a top-100 company earns 202 times as much as the average Canadian worker.
  • Nunavut registered the highest salary growth rate at 20.1%.
  • British Columbia has a minimum wage of $15.20 per hour.
  • Canadians aged 45 to 54 have an average annual income of $66,968.

General Income Statistics for Canada

1. 15.7% of Canadians had an annual income of $100,000 or more in 2019.

 (Source: Statista)

The average income in Canada varies a lot, depending on educational attainment, industry, and skills. Some 17.6% of Canadians have an annual income of around $60,000 to $79,000. They represent the largest group. About 2.1% of the population earns less than $5,000, including losses.

2. The average annual salary of fully employed Canadians was around $54,630 in 2020, Canadian salary statistics confirm.

(Source: jobillico.com)

If measured weekly, workers earned an average of $1,050.59. This showed a positive trend, underlining a 4% rise in earnings from January 2019. The increase in the growth rate was optimistic, seeing how the previous average annual income growth rate was only around 2.7%.

3. For every dollar of household disposable income, Canadians owe $1.7 in credit market debt. 

(Source: cp24.com)

Perhaps surprisingly, disposable income Canada statistics reveal a decrease in the amount owed by Canadians compared with their income in Q1 2021. The household credit market debt as a proportion to the household disposable income, seasonally adjusted, declined to 172.3%. This means that the increase in household income has actually outpaced a rise in debt. 

4. As of 2019, Canadian families and unattached individuals had a median income of $62,900 after tax. 

(Source: 150 Stat Can)

The reduction of 10.1% in the poverty rate in Canada means that a lot of families saw an increase in their income. This means that the Canada median salary was virtually unchanged from 2018. Families under 65 were the highest earners, with a median income of $93,800 after taxes. 

Meanwhile, couples with children earned a median income of $105,500. The median income of families whose highest-income earner was 65 or older was around $64,300

5. According to income statistics, the average Canadian family spends almost $39,000 on taxes every year.

(Source: Fraser Institute) 

One of the significant expenses for every Canadian family is paying taxes. A study conducted by Fraser Institute found that the average Canadian family pays a total of $39,000 in taxes on an annual income of $91,535

This shows that as much as 42.6% of their earnings go to taxes. Canadians pay more taxes beyond their income and payroll deductions, including property taxes, sales taxes, import taxes, alcohol taxes, and more.


Income Inequality in Canada Statistics

canadian income statistics

6. Income inequality in Canada has decreased by almost 30% because of the tax systems.

(Source: Business Council of Alberta)

While inequality still exists in Canada, the Great White North has done a lot to close the gap. And the country’s progressive tax system has significantly improving Canadian income distribution

Here’s the deal:

While the bottom 40% earn around 13% of the total income earned before taxes and transfers, this figure goes up to 21% after taxes. On the other hand, the top 20% might make an average of $131,000, but they take home around $26,000 less after taxes. 

Key takeaway:

This arrangement has done a lot to reduce income inequality among Canadians.

7. The average CEO of a top-100 company in Canada earns 202 times as much as the average Canadian worker, Canada income statistics from 2021 reveal.

(Source: NUPGE)

These figures for 2019 don’t bode well to talks of income equality. And this glaring fact was illustrated more starkly when the COVID-19 pandemic hit. Workers were laid off, and others had to rely on income support of just about $500 a week. Meanwhile, CEOs enjoyed a stock market boom, expecting an increase in their compensation in 2020.

8. In 2019, women earned 76.8 cents for every dollar earned by men.

(Source: Canadian Women’s Foundation)

Unfortunately, the gender pay gap is still as apparent as ever, as recent Canada income statistics make clear. 

The Ontario government reported that women with the same experience, socio-economic, and demographic background still earn approximately $7,200 less than their male counterparts annually. So, to earn the same 12-month income as men, women must work 15 and a half months

9. Indigenous Canadians earn around 70 cents for every dollar earned by non-Indigenous Canadians, Canada income statistics confirm.

(Source: evidencenetwork.ca)

This situation is pretty common in urban reserves, where non-Indigenous people earn 34% more than First Nation workers for the same work. And it’s even worse in rural reserves, where non-Indigenous people make as much as 88% more than their Indigenous counterparts. 

On a brighter note, Indigenous people with university degrees are narrowing the gap. The income differential for those with a bachelor’s degree dropped from $3,382 to $648 in the period between 1996 and 2006.

10. In 2018, the top 1% earners in Canada had an average annual income of $496,200.

(Source: Narcity.com)

The wealthiest Canadians earn nearly half a million every year, 2018 stats on the top 1% income in Canada reveal. Even more incredible, the top 0.1% earn even more, with eye-watering average earnings of $1,669,400

However, we have to note that the average income of the wealthiest in the country may vary from province to province. Still, this is a concerning matter when we consider Canada’s wealth distribution and how it plays out in reality.


Canada Average Income by Age

11. Almost 2 million seniors live on $17,000 per year. 

(Source: Canada Without Poverty)

Older adults in Canada have not been spared from struggles. In fact, nearly 15% of single elderly individuals live in poverty. 

What’s more: 

Approximately two million seniors try to make ends meet by living on the Guaranteed Income Supplement that they receive from the government. Their income per year is just around $17,000, which is lower than the Canada poverty line annual income for a single individual of $18,000.

12. Canadians aged 45 to 54 have an income of around $66,968.

(Source: The Measure of a Plan)

When looking at the average salary by age in Canada, we see that people enjoy their peak income years aged 45 to 54. At this point, they have an average income of $66,968, which is considerably higher than that of younger Canadians who belong to the 25 to 34 age group (around $45,953). 

13. Millennials have a median after-tax household income of $44,093.

(Source: CBC) 

According to recent Canadian income statistics, today’s younger people are wealthier than previous generations. 

Here’s the deal:

Millennials aged between 25 and 35 earn a median after-tax household income of $44,093, compared to Gen-Xers’ ($33,276) and Baby Boomers’ ($33,350) at the same age. Click To Tweet

And before you ask:

Yes, these figures were adjusted for inflation. However, it’s important to note that Millennials are saddled with higher debts than older generations were at the time, including student debt.


Average Income by Province 

14. Nunavut has the highest annual salary average at $87,355.

(Source: Y-Axis)

Canada’s income levels vary widely depending on the region. 

It might come as a surprise, but:

Canadians who live in Nunavut are more well-off than their counterparts in other provinces in the country. They earn an average of $87,355 a year. 

Why is that?

Jobs in Nunavut are few and far between, and the living conditions are incredibly harsh. The same goes for the Northwest Territories, which basts the second-highest annual average salary of $77,670.

This is in complete contrast to Prince Edward Island, with an annual average salary of just around $45,912. The average salary in BC is about $53,416, while the average income in Alberta stands at $62,865

15. Nunavut is also the region with the highest salary growth rate of 20.1%.

(Source: Jobillico.com)

Having enjoyed a higher average salary annually, Nunavut also registered an impressive salary growth rate. British Columbia and the Northwest Territories both saw a growth rate of just a little above 5.0%

On the other hand, Yukon grew by 5%, followed by New Brunswick (2.9%) and Newfoundland and Labrador (2.3%).

16. The minimum hourly wage in British Columbia is about $15.20.

(Source: Retail Council of Canada)

The minimum wage in Canada varies from province to province. Fin instance, workers in British Columbia receive a minimum wage of $15.20 per hour as of June 2021. That figure stands at $16 in Nunavut. Meanwhile, the Ontario average salary is $14.25 per hour

Interesting fact:

Newfoundland & Labrador is the province with the lowest minimum hourly wage of $12.50. Click To Tweet

In Conclusion

Looking at the latest Canada income statistics is quite insightful, especially for those who want to know how much the average Canadian earns. Awareness of the latest trends can give us a better understanding of the wage and salary growth of different demographics across the country.

What’s more:

The stats on Canada income can help us answer some of the most important questions about the Canadian economy. While the COVID-19 pandemic has hit the economy hard, the Great White North is holding its own against the negative impact.

FAQ

What is the average income of a Canadian?

Canadians’ average income largely varies depending on their educational attainment, industry, and skills. The annual average earnings of full-time employees in Canada is a little more than $54,630.

What is the average family income in Canada?

Canada’s average household income often depends on the province. Overall, the average annual income of families and unattached individuals was $62,900 in 2019.

How much does the average Canadian pay in taxes per year?

Every Canadian family spends a lot on taxes. The percentage of taxes paid by income level in Canada is dictated by the income brackets one belongs to. Those earning more than $214,368 will have to pay 33% in Federal income tax. A study conducted by Fraser Institute reported that the average Canadian family has to shell out a total of $39,000 in taxes on an annual income of $91,535.

What does the top 1 percent make in Canada?

In 2018, the top 1% in Canada had an average income of $496,200. Canada income statistics reveal the top 0.1% earn even more, with average earnings of $1,669,400.

Leave a Reply

Your email address will not be published. Required fields are marked *