Tax freedom day for Canadians happened May 24, a week later than last year, calculated the Fraser Institute. (Pixabay Image)

Tax freedom day for Canadians happened May 24, a week later than last year, calculated the Fraser Institute. (Pixabay Image)

‘Tax Freedom Day’ in Canada is coming a week later this year

Fraser Institute calculates May 24 as day average household income matches tax payable for 2021

After Monday, Canadians start working for themselves – at least, that’s according to the Fraser Institute.

May 24 has been calculated as tax freedom day in Canada by the think-tank group. That means the total income made to this date by the average household of two or more people matches their total taxes to be paid in 2021.

That amount – charged by federal, provincial and municipal governments – equates to $48,757, roughly 39.1 per cent of the average annual household income of $124,659.

“This year, Tax Freedom Day arrives a week later than last year because of the increase in tax revenues forecasted by Canadian governments in 2021,” Jake Fuss, senior economist at the Fraser Institute, said in a release.

ALSO READ: Bank of Canada warns of rising risks from household debt, and a hot housing market

Indications suggest Canadians can expect that date to move farther into the calendar, the institute writes, as the $233.5 billion budget deficits the federal and provincial governments are running for 2021 lean heavily on taxes being deferred into the future.

Given those numbers, the Fraser Institute calculated balanced budget tax freedom day to be July 7. Such a hypothetical scenario determines the date Canadians would start working for themselves if the various levels of government paid for their spending with tax money collected this year.

“Future generations of Canadians will have to pay significantly higher taxes for the unprecedented deficits governments across Canada are running,” Fuss said.

Taxes payable used for the calculations include those on income, payrolls, health, sales, property, fuel, carbon output and more.


 

Do you have a story tip? Email: don.descoteau@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

Financetaxes

Just Posted

Chris Wilkinson
Chris Wilkinson column: This could be the worst thing done to you during the pandemic

As a result, all of us will contend with more ‘scarcity’ thinking and mindset.

The Crofton trailer park home where the bodies of two people were found. (Photo by Don Bodger)
Mom still waiting for answers after daughter and her fiance found dead in Crofton

Pair discovered dead in their Crofton home in May identified as Rachel Gardner and Paul Jenkins

FILE – Perry Bellegarde, National Chief of the Assembly of First Nations, takes part in an event on Parliament Hill in Ottawa on Tuesday, July 7, 2020. THE CANADIAN PRESS/Sean Kilpatrick
Indigenous Peoples Day must be a ‘call to action’, says Assembly of First Nations chief

Discovery of children at Kamloops residential school site must lead to change, Perry Bellegarde says

Robert’s column
Robert Barron column: Looking forward to 39 Days of Summer

I have always been a big fan of live music.

Cowichan seniors have a new resource. (submitted)
Free Cowichan Seniors program offers social prescriptions

Seniors 60 and over who are at higher risk of frailty due… Continue reading

The border crossing into the United States is seen during the COVID-19 pandemic in Lacolle, Que. on February 12, 2021. THE CANADIAN PRESS/Paul Chiasson
VIDEO: Border quarantine to soon lift for fully vaccinated Canadians

Eligible travellers must still take multiple COVID-19 tests

One Reconciliation Pole and two Welcome Figures were unveiled during a ceremony in honour of truth and reconciliation on National Peoples Indigenous Day at the Vancouver School District in Vancouver, B.C., on Friday, June 21, 2019. THE CANADIAN PRESS/Chad Hipolito
Horgan marks Indigenous Peoples Day by urging recognition of systemic racism

National Indigenous Peoples Day has been marked in Canada since 1996

A man makes his way past signage to a mass COVID-19 vaccination centre at the University of Toronto’s Mississauga campus during the COVID-19 pandemic in Mississauga, Ont., on Monday, May 17, 2021. THE CANADIAN PRESS/Nathan Denette
Canadians encouraged to see mRNA shots as interchangeable as more 2nd doses open up

Doctos urge people not to hesitate if offered Moderna after getting Pfizer for their first shot

Chief of Defence Staff Jonathan Vance sits in the front row during a news conference in Ottawa on June 26, 2020. THE CANADIAN PRESS/Adrian Wyld
Defence committee rises without report on Vance allegations

Committee had been investigating the government’s handling of complaints against former defence chief

The Coquihalla Lakes washroom is getting upgrades. (Submitted)
Coquihalla to get upgrades to aging washrooms

The Ministry of Transportation is providing $1 million in funding to upgrade 3 rest areas

The Crofton trailer park home where the bodies of two people were found. (Photo by Don Bodger)
Mom still waiting for answers after daughter and her fiance found dead in Crofton

Pair discovered dead in their Crofton home in May identified as Rachel Gardner and Paul Jenkins

The Sacred Hearts church on PIB land burned Monday morning. (Theresa May Jack/Facebook)
Two churches on First Nation land in South Okanagan burn to the ground

Sacred Hearts church on Penticton Indian Band land was reduced to rubble

Tl’etinqox-lead ceremony at the site of the former St. Joseph’s Mission in Williams Lake, B.C., June 18, 2021. (Angie Mindus photo - Williams Lake Tribune)
‘We are all one people’: Honouring residential school victims and survivors

Love, support and curiousity: Canadians urged to learn about residential schools and their impact

Indigenous rights and climate activists gathered outside Liberty Mutual’s office in Vancouver to pressure the insurance giant to stop covering Trans Mountain. (Photo by Andrew Larigakis)
Activists work to ensure Trans Mountain won’t get insurance

Global campaign urging insurance providers to stay away from Canadian pipeline project

Most Read