Income Statistics in Canada

Income statistics are a useful way to measure economic trends in a country. They allow you to compare your income to that of other people in your area and across Canada. But more importantly, policymakers use income data to determine where they need to distribute economic air or identify areas where legislation needs improving. Income data can also be useful for investors, entrepreneurs, and business owners.

In this article, we have collated information on income in Canada, including statistics such as median household income, average salaries, and hourly wages.

Income Statistics for Canadians

• Quebec has the highest median household income among the provinces. However, statistics show that Nunavut has the highest median income in the country.
• Average salaries are the highest in the three territories.
• Over 15% of elderly Canadians live in poverty.
• Nunavut has the highest hourly minimum wage at $19.00.
• Women in Canada earn 11% less than men.
• Workers from First Nations earn less than non-indigenous workers.

Median Household Income

The median after-tax income has increased year on year in Canada from 2016 until 2020 based on the Canadian census findings. In 2016, the average income was $60,400 compared to $66,800 in 2020. However, the changes differed between provinces.

As we see from the table, residents in Quebec saw the biggest increase in household income since 2020, followed by residents in Manitoba, while the median income decreased in Nova Scotia. The median income is the highest in Quebec and lowest in Nova Scotia.

Yukon, Nunavut, and Northwest Territories, which are home to less than 3% of Canada’s population, were not included in this survey by Statistics Canada. However, Statistics Canada data from 2018 shows an after-tax income of $93,500 for the Northwest Territories, $89,300 for Nunavut, and $73,200 for Yukon.

Individual Median Incomes in Canada

As well as looking at the household income in Canadian provinces and territories, we can also compare the median after-tax incomes for individuals across Canada.

There are far larger differences between the individual incomes than the household incomes across the Canadian provinces and territories with over a $40,000 difference between the highest and the lowest average. However, higher individual incomes do not necessarily mean the individuals are better off as the province/ territory may have higher living costs which balances things out.

Regional Variations

The incomes within provinces and territories can vary greatly, too. For example, if we look at the Northwest Territories, the median household income in Yellowknife is $141,700, while it is only $75,584 in Dehcho. In general, people in bigger cities have higher median incomes than those living in smaller towns or rural areas.

Salaries in Canada

In the tables above, we shared the data on median income after tax. The table below focuses on the median salaries across Canada, and it shows the average earnings before any tax or other expenses are deducted.

According to data from Jobillico, average salaries have gone up across the country. Some of these large increases are due to the rise in minimum wage over the intervening period, allowing Canadians to earn more than they had in previous years. New Brunswick saw the biggest increase in salaries, while Nunavut was nearly the same.

The differences in the average salaries and average incomes reflect the amount of taxes paid in different provinces and territories. You will find information on taxes a little later in the article.

Changes in Average Salaries

In 2020, the average annual salary for full-time employment in Canada was $54,630. In 2021, it was $56,935, an increase of just over 4%. In the first quarter of 2022, the average salary in Canada was lower than in 2021 at $56,416, a decrease of just under 1%.

If translated into weekly earnings, Canadians earned $1,050.59 in 2020, $1084.90 in 2021, and $1084.92 in the first quarter of 2022. By September 2024, the weekly earnings have climbed to $1252.85. While this may look like an improvement for Canadians, in real terms it is not because of the high inflation of recent years.

Income in Canada by Age

How does the average income change throughout a person’s working life in Canada? As expected, people just entering the workforce have the lowest yearly incomes. Interestingly, as people get older, the increases in salaries slow down. Here is what the averages look like for the different age groups in Canada.

16-24

The average salary for people aged 16-24 is $1,400 per month or $17,300 per year. This age group includes people just entering the workforce. People in this group will often work part-time while they are in school. However, some will be full-time workers.

25-34

This group includes people who have completed their education and already have work experience. They are becoming more established in their careers, especially the older people in this group. The average monthly salary is $3,908, and yearly $46,900.

35-44

Many adults in this age group are well-established in their careers, and many are moving into more specialised or senior roles. The average monthly salary in this age group is $5,308 and yearly is $63,700.

45-54

Many people in the 45-54 age group have progressed into managerial or leadership positions. Even those who have not will have seen their wages rise with their experience, especially if they have stayed with the same organisation. Interestingly, the difference to the previous age group is minimal, with a $5,558 monthly and $66,700 yearly salary. This suggests that people make bigger leaps earlier in their careers.

55 to Retirement

The average salary drops in this age group, and this may be because many will work fewer hours as they get closer to their retirement. People retiring early will also impact the averages in this age group, where the monthly average is $4,550 and yearly $54,600.

Yearly Income For Canadians Aged 65 or Over

The average monthly income for Canadians over 65 years of age is $1,883, which is $22,600 per year. This figure is so low because around 2 million seniors in Canada are living on the Guaranteed Income Supplement from the government. According to Canada Without Poverty, 15% of elderly individuals are living in poverty in Canada.

Minimum Hourly Wages in Canada

The minimum hourly wage differs between provinces and territories. The highest minimum wage is in Nunavut, where it is $19.00 per hour. The second and third highest hourly rates are in Yukon and British Columbia, where it is $17.59 and $17.40, respectively. 

As of October 2024, most provinces and territories across Canada raised their minimum wage to improve quality of life. This led to higher yearly salaries and earnings overall. 

Women Earn Less Than Men in Canada

Despite improvements in equal pay, women in Canada still earn 11% less than men. Women earn 89 cents for each dollar their male counterparts earn in the same job. The wage gap has decreased significantly since the 1990s, but there is still a lot more room for improvement.

Workers From First Nations Earn Less

Statistics show that non-indigenous workers are paid 34% more than Indigenous workers in urban settings. They earn 66 cents for every dollar a non-indigenous worker earns in the same job. This figure demonstrates that there is still a long way to go toward job equality between non-indigenous and First Nation workers.

Taxes in Canada

How much Canadians pay in taxes depends on their income level and where they live. Anyone earning a salary in Canada will pay both federal and provincial taxes. To determine how much you need to pay, you should first calculate the federal taxes, then the provincial taxes, and finally, add them together.

According to the Fraser Institute, on average Canadian families paid nearly $39,000 in taxes on a yearly income of $91,535 in 2020. This represents 42.6% of the total income.

Federal Taxes

There are different tax brackets for people with different incomes. Most people will pay the lowest possible taxes on lower incomes, while taxes rise on higher incomes.  For 2024, tax rates are 15% on the first $55,867 of taxable income. For income earned between $55,867 and $111,733, the rate is 20.5%. 

Provincial Taxes

The provincial tax rates work in the same way, with taxpayers paying the applicable tax rate for every portion of their income. For example, a person in British Columbia earning $60,000 per year will not pay 7.7% of the total income. Instead, they will pay 5.06% for the first $43,070. They will then pay 7.7% of the remaining $16,930 of their income.

Provincial Tax Rates

There are big differences in provincial taxes across Canada, but they all follow the same principle as exemplified above. At 4%, Nunavut has the lowest tax rates for the lowest-income earners, while at 25.75%, Quebec has the highest rate for the top-income earners.

Conclusion

There is a lot of variation in average incomes and salaries across Canada. While the three territories top the table for average salaries in Canada, not all of them are on top when comparing average household or individual incomes after tax.

The average salary in Canada increased from 2020 to 2021, but it was down by a small margin in the first quarter of 2022. However, when the data from the entire year is available, the picture could change.

While there have been improvements in pay equality in Canada, there is still work to do as women earn less than men and Indigenous workers earn less than their non-Indigenous counterparts.