Taxes Now Cost Canadian Families More Than Food, Shelter and Clothing Combined

Every household budget tells a story. In 2025, that story changed shape.

According to the Fraser Institute’s Canadian Consumer Tax Index, 2026 Edition, the average Canadian family earned $121,111 and paid $50,721 in total taxes — 41.9% of income. By comparison, the combined cost of shelter, food and clothing came to $43,657, or 36% of income.

For the first time in the index’s history, the tax bill is the single largest household expense — larger than the three basic necessities put together.

Why this matters for homeowners and buyers

A mortgage payment is only one part of what a household carries each month. When taxes take close to 42 cents of every earned dollar, that leaves less for the down payment, the monthly mortgage, the renovation, or the emergency fund.

For first-time buyers, a high fixed tax load can shrink the amount a lender will qualify you for — because affordability isn’t just the house price, it’s everything else competing for the same income.

For current owners, rising taxes and living costs are often the trigger that sends families back to the refinance calculator: consolidate debt, free up monthly cash flow, or access equity they’ve built.

The 1961 comparison

The gap isn’t new, but it’s widened. In 1961 the average family earned $5,000 and paid $1,675 in taxes — 33.5% of income — while basic necessities took 56.5%. The Fraser Institute reports the average family’s total tax bill has grown 2,928% in nominal dollars since 1961. (In inflation-adjusted 2025 dollars, the increase is about 189% — still substantial, but a different measure. Both are worth knowing so the comparison is fair.)

What you can actually do

You can’t change the tax bill from the kitchen table. But you can change how your housing dollars are structured:

• First-time buyers: get a pre-approval early so you know your real price range before you shop. Programs like the FHSA and HBP can build a down payment — confirm current limits with your tax advisor.
• Owners feeling the squeeze: compare a refinance, a home equity review, or a debt-consolidation structure before your cash flow forces the decision.
• Credit-challenged borrowers: a bank “no” is not the end of the options — alternative and private lenders underwrite differently.

How Matrix Mortgage Global helps

We help Ontario families see the full picture — not just the rate, but what fits your income, your equity, and your timeline. Whether you’re buying your first home in Scarborough or reviewing a renewal in North York, a confidential file review takes about as long as a coffee.

Review My Mortgage Options — call Matrix Mortgage Global or use the contact form to book a confidential review.

Source: Fraser Institute, Taxes versus the Necessities of Life: The Canadian Consumer Tax Index, 2026 Edition.