Statistics -> Federal personal income tax breakdown

Personal Income Tax Breakdown

Effective Tax Rates and High-Income Canadians, 2019

Statistics Canada published a document in November 2021 providing statistics on effective tax rates and other information, titled Effective tax rates and high-income Canadians, 2019.

Table 3 of the document shows the average effective tax rates, including federal and provincial/territorial income tax and federal payroll tax, for all tax filers, and for the top 1% taxfilers based on average total income.  The average effective tax rate is shown for Canada overall, and for each province. The 3 territories are combined.

Average effective tax rates 2018 and 2019 (both are the same) for Canada:

• top 1% taxfilers 31.7%
• all tax filers 11.8%

Unfortunately, the document doesn't provide the same information as the study below done for 1990 to 2002.

2005 Study re 1990 to 2002

Statistics Canada published a study in 2005 titled Federal Personal Income Tax:  Slicing the Pie, which examines the breakdown of federal personal income taxes paid by high and low income earners in Canada, from 1990 to 2002.  Income earners were divided into 3 groups for the study:

• 10% of taxpayers with the highest incomes

  This group included taxpayers earning:

  • over $48,700 in 1990
  • over $64,500 in 2002

     

• 50% of taxpayers with the lowest incomes

  This group included taxpayers earning:

  • $19,000 or less in 1990
  • $23,000 or less in 2002

     

• 40%, or remaining taxpayers, with intermediate incomes

  This group included taxpayers earning:

  • $19,001 to $48,700 in 1990
  • $23,001 to $64,500 in 2002

The following tables summarize the results of the study.

a.    Share of federal personal income tax paid by the 3 groups of taxpayers in Canada

Income  group	% of federal personal income taxes paid
	1990	2002
50% with lowest incomes	6.7%	4.4%
40% with intermediate incomes	47.3%	43.0%
10% with highest incomes	46.0%	52.6%
All Canadian taxfilers	100.0%	100.0%

 

b.    Effective federal personal income tax rates paid by the 3 groups

Income  group	Federal tax as % of income
	1990	2002
50% with lowest incomes	4.30%	2.89%
40% with intermediate incomes	11.75%	10.14%
10% with highest incomes	17.79%	16.47%
All Canadian taxfilers	12.25%	11.18%

 

c.    Share of total income of the 3 groups

Income  group	% of total income
	1990	2002
50% with lowest incomes	19.0%	16.9%
40% with intermediate incomes	49.3%	47.4%
10% with highest incomes	31.7%	35.7%
All Canadian taxfilers	100.0%	100.0%

All information in this article adapted from Statistics Canada publication No. 11-621-MIE2005024, April 22, 2005.

Revised: