Fraser Institute report: Taxes exceed basic living costs for Canadian families

A new report from the Fraser Institute reveals that taxes have become the largest expense for the average Canadian family, surpassing the combined costs of housing, food, and clothing. According to the ‘Canadian Consumer Tax Index 2026’, the average family income of approximately $121,111 in 2025 resulted in total tax obligations of about $50,721, representing 42% of total income.

Healthcare costs represent a significant portion of this burden. A typical family of four is estimated to pay $21,115 for public health insurance in 2026, which accounts for roughly a quarter of their total tax bill. The report notes that since 1997, the cost of health insurance for the average family has increased by 278.8%, outpacing the rise in food costs and average incomes.

Despite high spending—reaching 12.7% of GDP in 2025—the report highlights deteriorating service levels. Canada ranks 27th among 30 OECD peers for doctor availability and 25th for hospital beds. Median wait times from referral to treatment reached 28.6 weeks in 2025, a significant increase from 9.3 weeks in 1993. In response to these pressures, provinces like Alberta and Ontario are implementing policies to allow for more private-sector involvement in surgical and medical services.