June 10 is Tax Freedom Day in Canada – one day later than it was in 2014 – according to the Fraser Institute.
The institute determines this date every year and defines it as the day Canadian families have earned enough to cover all the taxes they will pay for the year, “when Canadians start working for themselves and not government.”
“Without our Tax Freedom Day calculations, it’s nearly impossible for Canadian families to know all the taxes they pay each year because federal, provincial and local governments levy such a wide range of taxes,” said Charles Lammam, the Fraser Institute’s director of fiscal studies.
The calculation is based on an average Canadian income of approximately $102,929 per year and a tax rate of 43.7% of annual income, making total taxes for the year $44,980. The taxes used in the calculation include income, payroll, property, sales, vehicle and fuel taxes.
The date was pushed back this year because of a projected increase in taxes of 3.1% and income growth of 2.1%.
“With a rising overall tax burden, household budgets get squeezed, limiting the amount of income families have to spend, save or pay down household debt,” Lammam said.
In British Columbia, Tax Freedom Day was June 6 – the same as it was last year. B.C. was the only province that did not see a change in the date this year.
