In 2021, the average Canadian family will earn $124,659 and pay an average of 39.1% of this or $48,757 in all taxes. So, if you are feeling the pinch, you are not alone. The Fraser Institute found that in 2021 that day occurred on May 24, the May long weekend, a week later than last year’s May 17. But they warn the future “Balanced Budget Tax Freedom Day” will be much later.
Based on projected deficits, the Fraser Institute, which releases studies on the day Canadians earn enough income to officially start working for themselves after paying taxes, has estimated that if Canadians had to pay their taxes up front to all three levels of government (federal, provincial and local) it will take until July 7 to start working for themselves: more than half the year. Here are some additional stats from the report:
How many different types of taxes do Canadians pay? You may be surprised: the report notes that just some of the taxes tracked in their Tax Freedom Day compilation statistics includes these 12:
That’s likely why Canadians have so much trouble conceptualizing how much to save for retirement: taxation of various different sources, are a wild card for many. Fortunately, Knowledge Bureau has just published a new course for professionals and their clients alike to explore the options.
Evelyn Jacks is President of Knowledge Bureau and author of 55 tax filing, planning and wealth management books for consumers and their advisors. She tweets @evelynjacks
Additional educational resources: The Advanced Retirement and Estate Planning Course. The course features recordings of the instructor-led sessions from the May 20 Virtual CE Summit, and you’ll earn 30 CE credits and important new credentials that provides a full course credit towards the MFA™-Pension & Estate Services Specialist Designation Program.
As a June special tuition offer, you can earn new specialized credentials to help your clients prepare for retirement. Get started by taking this course or the Personal Pension Planning Certificate Course for only $659 when you enrol by June 30 (Save 26% on regular tuition of $895.) Use code ‘21RETIRE’ when you enrol online.