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

Students at Creston Valley Secondary School put together an art installation of a replica residential school room. (Photo by Kelsey Yates)
Creston students create art installation of residential school room

The replica was decorated with a small bed, school uniform, and notes written with pleas for help

An example of the kinds of invasive plants that can be found in Golden. (Tesia Hackett photo)
Golden annual weedpull back for 14th year

Invasive plants can be harmful to local ecosystems, Wildsight says

A tent housing a mobile vaccination clinic. (Interior Health/Contributed)
Second dose vaccinations accelerating throughout region: Interior Health

To date, more than 675,000 doses have been administered throughout the region

BC CDC map showing the geographic distribution of cases in the province. (BC CDC photo)
No new cases of COVID-19 in Golden

The last time the BC CDC reported a new case in the area was the week of May 23-29

Prince Charles Secondary School
School District 8 votes in favour of name change for Secondary School in Creston

In an act of reconciliation, a new name will be chosen for Prince Charles Secondary School

Bear wanders Kelowna on June 15. (Michelle Wallace/Facebook)
Bear climbs fence, uses crosswalk in Kelowna

The bear was spotted on Baron Road Wednesday evening

Hundreds of people, young and old, joined the three-day Walking Our Spirits Home procession, honouring residential school survivors, those who never made it home and all those affected by the institutions. Here people walk the third portion on June 13. (Martha Wickett - Salmon Arm Observer)
Walking Our Spirits Home from Kamloops provides path to healing

First Nations in and beyond Secwépemc territory join in to honour residential school survivors

More flames
UPDATE: Lake Country home destroyed in massive blaze

Fire crews are responding to 10839 Hallam Drive

(Facebook/Kelowna Cabs)
Kelowna Cabs reaches tentative agreement with dispatchers union

The tentative agreement could help end the dispute between the taxi company and the dispatchers

FILE – A science class at L.A. Matheson Secondary in Surrey, B.C. on March 12, 2021. (Lauren Collins/Surrey Now Leader)
Teachers’ union wants more COVID transmission data as B.C. prepares for back-to-school

BCTF says that details will be important as province works on plan for September

201 First Street West 1980s. Prior revitalization. (Photo from Revelstoke Museum and Archives)
Man who redesigned downtown Revelstoke honoured with lifetime achievement award

Robert Inwood has worked on historical projects across the province

Provincial health officer Dr. Bonnie Henry outlines B.C.’s COVID-19 restart plan, May 25, 2021, including larger gatherings and a possible easing of mandatory masks on July 1. (B.C. government photo)
B.C. records 120 new COVID-19 cases, second vaccines accelerating

Lower Pfizer deliveries for early July, Moderna shipments up

The weekly COVID-19 map for June 6 to 12. (BC CDC)
South Okanagan sees only 5 new cases in last week

The Similkameen Valley went a second week without any new cases

Most Read