Happy Tax Freedom Day!

June 13, 2019 Yosie Saint-Cyr, LL.B. Managing Editor HR Analytics, HR Policies and Procedures, Human Resources, Payroll, Pensions and Benefits, Source Deductions and Reporting, Wages and Compensation, 0

Happy tax freedom day (June 14) from the Fraser Institute. “Because governments impose a litany of taxes—some visible, some hidden—it’s very difficult for Canadians to get a clear sense of all the taxes they pay. That’s why every year the Fraser Institute calculates Tax Freedom Day, a handy measure of the total tax burden imposed on Canadian families by federal, provincial and local governments.”

According to the Fraser Institute, if you paid all your taxes up front, you’d give government every dollar you earned before today, Tax Freedom Day. From today onward, you’re finally working for yourself and your family. However, that day may vary depending on the jurisdiction in which you are located.

Summary of findings from the Tax Freedom Day report published by the Fraser Institute

In 2019, the average Canadian family will earn $117,731 in income and pay an estimated $52,675 in total taxes (44.7%).
If the average Canadian family had to pay its taxes up front, it would have worked until June 13 to pay the $52,675 total tax bill imposed on it by all three levels of government (federal, provincial and local).
This means that Tax Freedom Day, the day in the year when the average Canadian family has earned enough money to pay the taxes imposed on it, falls on June 14.
Tax Freedom Day in 2019 comes one day earlier than in 2018, when it fell on June 15. This decline is due to the expectation that the incomes of Canadians will increase more than the total tax revenue forecasted by Canadian governments.
Tax Freedom Day for each province or territory varies according to the extent of the provincially/territorially levied tax burden. The earliest provincial Tax Freedom Day falls on May 27 in Alberta, while the latest falls on July 2 in Newfoundland & Labrador.
If governments increased taxes to balance their budgets instead of financing expenditures with deficits (which are deferred taxes), Tax Freedom Day would arrive 8 days later. Put differently, the Balanced-Budget Tax Freedom Day arrives on June 22.

Tax Freedom Day for each province and Canada varies according to the extent of the provincially and federally levied tax burden. 2019 provincial and Canadian Tax Freedom Days (earliest to latest):

Alberta May 27
Saskatchewan June 2
Manitoba June 3
Prince Edward Island June 10
British Columbia June 10
Ontario June 11
New Brunswick June 15
Nova Scotia June 17
Quebec June 28
Newfoundland & Labrador July 2
CANADA June 14

To learn more about Tax Freedom Day, check out the Fraser Institute’s video, infographics and calculate your own personal Tax Freedom Day on the Fraser Institute’s website.

About
Latest Posts

Follow me

Yosie Saint-Cyr, LL.B. Managing Editor

Managing Editor at First Reference Inc.

Yosie Saint-Cyr, LL.B., is a trained lawyer called to the Quebec bar in 1988 and is still a member in good standing. She practiced business, employment and labour law until 1999. For over 18 years, Yosie has been the Managing Editor of the following publications, Human Resources Advisor, Human Resources PolicyPro, HRinfodesk and Accessibility Standards PolicyPro from First Reference. Yosie is one of Canada’s best known and most respected HR authors, with an extensive background in employment and labour across the country. Read more