Fraser Institute: Canada's top 20% already pay 58% of all taxes

The Fraser Institute has released a new study showing how Canada’s top 20% of earners pay far more than their share in taxes.

 

Calls to "eat the rich" continue to dominate political debate in Canada, but a new Fraser Institute study suggests the country's highest-income earners are already footing the majority of the tax bill.

According to Measuring Progressivity in Canada's Tax System, 2026, released Thursday, the top 20 per cent of Canadian income-earning families pay 58.3 per cent of all taxes collected by federal, provincial and local governments. They also pay 65.3 percent of all personal income taxes.

By comparison, the bottom 20 percent of income-earning families pay just 0.7 percent of personal income taxes and 1.7 percent of all taxes.

The study, authored by Fraser Institute researchers Jake Fuss and Nathaniel Li, challenges the common political claim that higher-income Canadians are not paying their fair share.

"There is a common misperception in Canada that top income earners do not pay their share of taxes," the authors write, noting that Canada's tax system is already highly progressive, with tax burdens increasing as income rises.

The report also warns that further tax hikes on higher earners may not produce the windfall governments expect. The authors argue that taxpayers often change their behaviour in response to higher tax rates by engaging in tax planning, avoidance or other legal means of reducing their taxable income, leaving governments with less additional revenue than projected.

Beyond the revenue question, the Fraser Institute says higher taxes also make Canada less competitive internationally, particularly compared to the United States. According to the report, increasing taxes on top earners makes Canada a less attractive destination for highly skilled professionals, including doctors, scientists, engineers, managers and software developers.

The findings come as politicians on the left continue to advocate for higher taxes on wealthier Canadians as a way to fund expanding government programs. But if the goal is simply to make the wealthy pay more, the Fraser Institute's latest figures suggest they already do.

The report concludes that Canada's tax system already places a disproportionate share of the country's tax burden on higher-income families, with the top fifth of earners contributing well over half of all tax revenues while the bottom fifth contributes less than two per cent.

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Sheila Gunn Reid

Chief Reporter

Sheila Gunn Reid is the Editor-in-Chief, Alberta Bureau Chief, member of the board of directors, and host of The Gunn Show at Rebel News. Sheila also serves as President of the Independent Press Gallery of Canada. A mother of three and longtime conservative activist, Sheila is the author of bestselling books, including her most recent release, Independence Blueprint: What Alberta Can Learn From Quebec.

https://mybook.to/sheila

COMMENTS

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  • Bernhard Jatzeck
    commented 2026-07-09 13:42:01 -0400
    Here’s something else to consider. Many of that same 20% own or run companies. The revenue that those firms produce is taxed. That same revenue is used to pay the employees, and that income is also taxed. Those workers will buy food and the grocery stores pay tax on that revenue.

    Rather than increasing our taxes, how about the government spend the money it gets from us more effectively? Oh, I forgot: doing that might mean that Carney might have to eat Big Macs on his next flight to Coleslawvania…..