This Sunday, June 8, marks Tax Freedom Day for Canadians, meaning they begin earning for themselves rather than the government, according to a Fraser Institute study.

“If Canadians paid all their taxes up front, they would work the first 158 days of this year before bringing any money home for themselves and their families,” said Jake Fuss, director of fiscal studies at the Fraser Institute.

Meanwhile, Canada's forecasted $90 billion in federal and provincial deficits will have substantial tax implications in future years.

Tax Freedom Day, which measures the total annual tax burden imposed on Canadian families by all levels of government, happened earlier this year. 

In 2025, Canadian families will pay $68,266 in taxes, representing 43.1% of their typical $158,533 income. This tax amount has risen, though it constitutes a slightly smaller percentage of total income than in previous years. 

It reflects income, payroll, health, sales, property, fuel, and "sin" taxes.

5/
And for what?
➡️Emergency rooms you wait 12 hours in
➡️Infrastructure that crumbles
➡️Out of control crime
➡️Unaffordable housing
➡️Explosive immigration
➡️A CBC nobody watches
➡️Interest payments on debt your grandkids will still be paying off

— Sheila Gunn Reid (@SheilaGunnReid) June 7, 2025

In 2025, Canadians will face significant tax changes, including increased CPP and EI premiums and a 2% alcohol tax hike, according to the Canadian Taxpayers Federation (CTF). Additionally, Ottawa's digital services and online streaming taxes, introduced last year, will cost taxpayers $1.2 billion and $200 million respectively.

“Tax hikes will give Canadians a hangover in the new year,” CTF federal director, Franco Terrazzano, earlier told Rebel News. “Canadians can't afford gas or groceries,” he added, a finding backed by Statistics Canada.

In 2023, StatsCan reported that wage growth lagged behind rising prices, especially for food and housing, leading to decreased purchasing power. Family car costs increased by 13.4%, food prices by 14.8%, and mortgage interest by 18%.

Recent RBC polling reveals 48% of Canadians struggle to maintain living standards due to rising costs.

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Meanwhile, the federal bureaucracy grew by 99,000 employees since 2016.
Average pay? $125,300.
Your taxes are feeding a bloated, overpaid, and underperforming government machine.

— Sheila Gunn Reid (@SheilaGunnReid) June 7, 2025

The Fraser Institute says governments across the country should take note, and immediately cut taxes, the largest expense for families. 

“Canadians need to decide for themselves whether they are getting their money’s worth when it comes to how governments are spending their tax dollars,” Fuss said.

A 2023 Leger poll revealed that over half of Canadians think families should pay 25% or less of their income to the government, and four out of five support paying less than 40%.

“Canadians pay too much tax because politicians waste too much money. The government needs to provide relief by trimming the fat and cutting taxes,” said Terrazzano.