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Average Household Income in Canada: Provincial, Regional, and Demographic Trends

Average Household Income in Canada
Average Household Income in Canada

Household income is a crucial economic indicator that provides insight into the financial well-being and standard of living of Canadian families. Understanding trends in average household income in Canada is essential to analyzing the prosperity gaps across the country’s diverse regional and demographic landscape.

This article will examine the most recent household income data from Statistics Canada, drawing primarily from the comprehensive 2020 income statistics. We will also incorporate key insights from the 2022 data on income for families and unattached individuals to analyze how income has shifted during and after the COVID-19 pandemic.

This report aims to provide a detailed overview of how household incomes are distributed across Canada by breaking down average and median income figures nationally, provincially, and by major cities. We will also explore factors such as income inequality, poverty rates, and the role of government transfers in temporarily stabilizing incomes, especially among lower-income households.

What is The Average Household Income in Canada?

The average household income in Canada provides an essential snapshot of the financial well-being of families nationwide. According to comprehensive data from the 2020 Census of Population conducted by Statistics Canada, Canadian households’ average income before tax was $106,300 for the year. ( Source )

After federal and provincial income taxes are accounted for, the average household income in 2020 dropped to $87,700. While helpful, this average income figure may not represent a typical Canadian household’s earnings.

That’s because averages can be disproportionately influenced by extremely high-income households at the top of the distribution. When a relatively small number of affluent households earn significantly more than the median, the average gets skewed upwards and may overstate the income of a typical middle-class home.

What is The Median Household Income in Canada?

What is The Median Household Income in Canada?
What is The Median Household Income in Canada?

Experts examine the median household income to get a more accurate sense of a typical household’s earnings. The median represents the midpoint of the income distribution, with half of households earning less than the median and half earning more.

In 2020, Canada’s median household income before tax was $84,000. After tax, the median dropped to $73,000 for the year. The $14,700 gap between the average ($87,700) and median ($73,000) household incomes demonstrates the impact of high-income inequality.

  • Average total household income after tax in 2020: $87,700
  • Median total household income after tax in 2020: $73,000

While Canada’s average after-tax household income paints a picture of widespread prosperity, the median income tells a different story. Half of Canadian households lived on less than $73,000 after tax in 2020. Tracking the average and the median over time provides a fuller understanding of how income is distributed and whether inequality is improving or worsening.

How Does Average Household Income Vary By Province?

There are significant regional income disparities between provinces and territories in Canada. The average household incomes after tax across all provinces and territories in 2020 were:

Province/TerritoryAverage Household Income After Tax
Northwest Territories121,700
Nunavut117,400
Yukon Territories101,400
Alberta$98,800
Ontario$95,300
British Columbia$91,100
Canada$87,700
Saskatchewan$84,100
Manitoba$80,400
Newfoundland and Labrador$75,500
Quebec$75,200
Prince Edward Island$73,500
Nova Scotia$72,500
New Brunswick$72,200
(source: Census of Canada and National Household Survey)

Household incomes tend to be higher in provinces with economies centred on high-paying industries such as oil and gas, finance, manufacturing, and technology. Poorer provinces are often focused on lower-wage sectors like agriculture, fishing, mining, and forestry.

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How Does Median Household Income Differ By Province?

Much like the trend seen with average income, median household income also varied significantly across different parts of Canada in 2020:

Province/TerritoryMedian Household Income After Tax
Northwest Territories$109,000
Nunavut$104,000
Yukon Territories$88,000
Alberta$83,000
Ontario$79,500
British Columbia$76,000
Canada$73,000
Saskatchewan$72,500
Manitoba$69,500
Prince Edward Island$64,500
Quebec$63,200
Newfoundland and Labrador$63,200
Nova Scotia$62,400
New Brunswick$62,000
(source: Census of Canada and National Household Survey)

The median income figures reinforce some of the regional prosperity gaps, with resource-rich provinces like Alberta having much higher middle-class incomes compared to poorer Maritime provinces.

Urban-rural divides also exist, as median incomes tend to be higher in large metropolitan areas compared to smaller towns and rural communities. However, higher costs of living in cities can offset some of these income gains.

How is Household Income Distributed By Income Level in Canada?

Canada’s household income distribution can be categorized into low-, middle- and high-income groups based on income brackets:

  • Low-income households: The bottom 19.38% of households earning less than $40,000 made up around 2.9 million households.
  • Middle-income households: The middle 40.20% of households earning between $40,000 and less than $100,000 made up around 6 million households.
  • High-income households: The top 40.42% of households earning more than $100,000 made up around 6 million households.
Distribution of Household Total Income by Income Groups (year 2020)
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Distribution of Household Total Income by Income Groups (year 2020)

(source: Statistics Canada. Table 98-10-0055-01)

In 2020, government support programs implemented during the pandemic had an equalizing effect on this income distribution. Low- and middle-income households received substantial temporary boosts in income through programs like the Canada Emergency Response Benefit (CERB).

This helped stabilize incomes among lower-income groups. However, in the absence of further government aid, income inequality widened again in 2021 and 2022 based on other economic indicators.

What is the Median Household Income in Major Canadian Cities?

Drilling down further, average household income differed significantly between major urban centers in 2020:

CityMedian Total Household Income Before Tax 2020 (CAD)
Wood Buffalo (AB)182,000
Yellowknife 148,000
Whitehorse (YT)109,000
Oshawa (ON)102,000
Calgary (AB)100,000
Ottawa – Gatineau (ON/QC) 98,000
Guelph (ON)97,000
Toronto (ON)97,000
Barrie (ON)97,000
Edmonton (AB)96,000
Kitchener – Cambridge – Waterloo (ON).92,000
Abbotsford – Mission (BC)91,000
Hamilton (ON)91,000
Regina (SK)90,000
Vancouver (BC)90,000
Saskatoon (SK)89,000
Kamloops (BC)87,000
Kelowna (BC)85,000
Victoria (BC)85,000
St. John’s (NL)85,000
Red Deer (AB)85,000
Brantford (ON)85,000
Canada84,000
Greater Sudbury (ON)84,000
Lethbridge (AB)84,000
Kingston (ON)83,000
Winnipeg (MB)83,000
Chilliwack (BC)82,000
Windsor (ON)82,000
Halifax (NS)81,000
Thunder Bay (ON)80,000
Medicine Hat (AB)80,000
London (ON)79,500
Peterborough (ON)79,000
Fredericton (NB)79,000
Prince Albert (SK)78,000
Belleville – Quinte West (ON)78,000
Nanaimo (BC)77,500
St. Catharines – Niagara (ON)77,000
Québec (QC)76,500
Charlottetown (PE)76,500
Montréal (QC)76,000
Moncton (NB)74,500
Saint John (NB)74,000
Saguenay (QC)70,000
Sherbrooke (QC)65,000
Drummondville (QC)64,000
Trois-Rivières (QC)62,400
Cape Breton (NS)62,000
(source: Statistics Canada. Table 98-10-0055-01)

In general, larger metropolitan areas with strength in high-paying sectors had higher average incomes. However, costs of living in cities like Toronto and Vancouver also tend to be much higher than in smaller towns and rural regions, reducing real income gains.

How Did Income for Families and Unattached Individuals Differ in 2022?

The above income data focused specifically on overall household incomes in Canada for 2020. More recent income statistics from 2022 provide insight into how incomes for economic families and unattached individuals have evolved:

  • Median total income before tax for families and unattached individuals in 2022: $80,500
  • Average total income before tax for families and unattached individuals in 2022: $106,800
  • Median after-tax income for families and unattached individuals in 2022: $70,500
  • Average after-tax income for families and unattached individuals in 2022: $87,700

Economic families, defined as two or more related people living together, typically had higher incomes than unattached individuals relying on a single income source.

Regionally, median after-tax family income of families and unattached individuals varied in 2022:

GeographyMedian after-tax income (2022 constant dollars)
Canada70,500
Newfoundland and Labrador63,100
Prince Edward Island63,300
Nova Scotia58,500
New Brunswick59,700
Quebec64,600
Ontario74,600
Manitoba66,900
Saskatchewan72,100
Alberta82,700
British Columbia70,600
(source: Statistics Canada. Table 11-10-0190-01)

A 3.4% decrease from 2021 to 2022 in Canada :

2019202020212022
Median after-tax income$68,800$73,700$73,000$70,500
Median market income$63,600$61,400$65,900$65,100
Median government transfers$9,100$18,100$14,200$10,100
Poverty rate, all persons10.3%6.4%7.4%9.9%
(source: Statistics Canada, Canadian Income Survey, 2022)

This indicates that some provincial prosperity gaps persisted after the pandemic, with resource-rich Alberta continuing to have higher median incomes.

How Did Poverty Rates and Income Inequality Change in 2022?

According to Statistics Canada, the national poverty rate climbed to 9.9% in 2022, up from 7.4% in 2021. This means nearly 1 in 10 Canadians were living below the poverty threshold, reversing progress made during pandemic support programs in 2020.

Poverty rates also increased across most age groups:

  • Children under 18: 9.9%, up from 6.4% in 2021
  • Working-age adults (18-64): 11.1%, up from 8.2% in 2021
  • Seniors over 65: 6.0%, up slightly from 5.6% in 2021

Additionally, income inequality indicators like the Gini coefficient rose, pointing to a growing prosperity gap between high- and low-income Canadians.

What Factors Influenced Changing Household Incomes Between 2020-2022?

What Factors Influenced Changing Household Incomes Between 2020-2022?
What Factors Influenced Changing Household Incomes Between 2020-2022?

3 economic factors contributed to fluctuating household incomes between 2020-2022:

  • The COVID-19 pandemic caused unprecedented job losses in 2020 before recovery resumed. Government income support also had a temporary equalizing effect.
  • High inflation in 2022 eroded real wage gains even as nominal incomes rose slightly. Canada’s annual inflation rate hit 6.8% in 2022.
  • Certain sectors, such as technology, finance, and manufacturing, saw strong wage growth from 2020 to 2022. Meanwhile, wages stagnated in lower-paying jobs like retail and hospitality.

Changing demographics and social trends also impacted incomes:

  • Dual-income families tended to have higher household earnings compared to single-earner households.
  • Education played a role, with university-educated households earning significantly more than high school-educated households.
  • Lone-parent families were more vulnerable to low incomes compared to two-parent households.

Conclusion

In reviewing the detailed income statistics from 2020 and 2022, several insightful trends emerge around average and median incomes regionally, provincially, and demographically. While higher-income provinces like Alberta and Ontario continue to prosper, lower-earning regions grapple with growing inequality and poverty rates.

Demographic factors like education, family structure, and dual-income versus single-earner households significantly impact household earnings. With high inflation persisting, tracking how real incomes will evolve in 2023 and whether further government interventions are required to support Canada’s most vulnerable groups will be necessary.government interventions are required to support Canada’s most vulnerable groups.

What was the average household income in Canada in 2020?

The average household income in Canada in 2020 was $106,300 before tax and $87,700 after tax.

What was the median household income in Canada in 2020?

The median household income in Canada in 2020 was $84,000 before tax and $73,000 after tax.

How did average household income differ by province in 2020?

Average household income varied significantly by province in 2020, with Alberta ($98,800) and Ontario ($95,300) having the highest averages. The lowest were in Nova Scotia ($72,500) and New Brunswick ($72,200).

What major cities had the highest average household incomes in 2020?

The cities with the highest average household incomes in 2020 were Wood Buffalo (AB) ($182,000), Yellowknife (NT) ($148,000), Whitehorse (YT) ($109,000), Oshawa (ON) ($102,000) and Calgary (AB) ($100,000).

What percentage of households were considered low income in 2020?

In 2020, the bottom 19.38% of households earning less than $40,000 were considered low income, making up around 2.9 million households.

How did government transfers impact income distribution in 2020?

Government transfers like CERB had an equalizing effect in 2020, temporarily boosting incomes for lower- and middle-income households.

What was Canada's poverty rate in 2022?

Canada's poverty rate climbed to 9.9% in 2022, up from 7.4% in 2021, meaning nearly 1 in 10 Canadians lived below the poverty line.

What industries saw strong wage growth from 2020-2022?

Sectors like technology, finance, and manufacturing experienced strong wage growth, while retail and hospitality wages were stagnant.

How does household income correlate with education levels?

Households with university-educated members tend to earn significantly higher incomes compared to households with only a high school education.

Source:
  1. Household income statistics – 150.statcan.gc.ca
  2. Household total income group by household characteristics – 150.statcan.gc.ca
  3. Canada Household Income – Average and Median – 03.cmhc-schl.gc.ca
  4. What is The Average Household Income in Canada – insurdinary.ca
  5. Canadian Income Survey, 2022 – 150.statcan.gc.ca
  6. What Is The Average Household Income In Canada – zeodigital.com

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Written by Ben Nguyen

Ben Nguyen is an award-winning insurance expert and industry veteran with over 20 years of experience. He is the chairman and director of IDC Insurance Direct Canada Inc., one of Canada's leading online insurance brokerages.

Ben is renowned for his extensive knowledge of life, health, disability, and travel insurance products. He is the prolific author of over 1,000 educational articles published on LifeBuzz, BestInsuranceOnline, and InsuranceDirectCanada. His articles provide Canadians with advice on making smart insurance decisions.

With a Bachelor's degree in Actuarial Science and a Fellow of the Canadian Institute of Actuaries (FCIA) designation, Ben is frequently interviewed by media as an insurance industry spokesperson.

He has received numerous honors including the Insurance Council of Canada’s Pivotal Leadership Award, the Canadian Insurance Hall of Fame induction, and the President’s Medal from the Canadian Institute of Actuaries.

Ben continues to shape the vision and strategy of IDC Insurance Direct as chairman. He is dedicated to advancing the insurance industry through his insightful leadership.

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