Canada is one of the best countries to work in with a high average single Canadian income and excellent standard of living.
According to Talent, the average Canadian currently makes about $72,000 per year or $36.92 per hour; however, the amount differs from province to province.
Statista, which covers a larger group, reported an average salary of $40,630 in 2020, an increase of nearly 8 percent compared to the figures reported in 2019.
On the other hand, Statistics Canada reported an average salary of $51,300 in 2020, nearly 4 percent higher than the reported income of $49,200 in 2019.
For the purpose of this article, we will look at the figures reported by Statistics Canada.
Average Salary by Age in Canada
The income greatly differs based on a variety of factors, including age. Technically speaking, age is not directly linked to the money one makes; however, it is related to the experience one gains as they grow older.
Understanding how the average Canadian salary changes with age can give you insights into how much money you can make in the future.
The chart below clearly mentions the average salary by age in Canada:
This group consists of young adults who usually take on part-time jobs and very rarely work full-time as they also have to manage their studies.
Jobs for teens and high schoolers typically include being a babysitter, barista, busser, call center representative, cashier, delivery driver, etc.
The employment rate in this age group stands at 57.93, and the average annual salary is $21,000.
You may want to read about the characteristics of Gen Z, who they are, and what their financial habits look like.
Adults who have completed their education belong to this group. They may not be very experienced but are willing to learn and grow.
This group sees a large increase in income from the previous group as they offer more in terms of experience, education, loyalty, and time.
They usually take on full-time jobs such as writers, accountants, teachers, and engineers. Moreover, the employment level in this group is among the highest in the country with an average yearly income of $50,200.
This group contributes greatly to the economy and holds positions such as doctors, lawyers, engineers, and lawmakers. Most people in this age group are established and ready to move to senior positions.
Few in this group continue to gain education and skills. The average annual salary for this group is $65,800.
Adults with years of experience belong to this age group. They are quite in demand, and companies often prefer to hire them.
While this group makes more than the previous groups, the growth in terms of percentage is low, which indicates that skill development is more important among younger individuals.
People in this group typically hold managerial and senior-level positions. The average annual salary is $67,400.
This group includes retirees and people who are close to hanging the boots.
There is a reduction in salary, which indicates that people in this group are willing to accept lower pay due to obsolete skills or willingness to work fewer hours. The average annual salary is $56,800.
Most people in this age group are planning to retire as the average retirement age of Canadians stands at 64.4 years old.
Furthermore, the employment rate for this group is very high at 62.21 percent.
Most people in this group have already retired, and those who are still working usually work in a limited capacity.
The fall in average salary is highly noticeable in this group, with the average annual salary being $43,200.
Taxes in Canada are high to moderate, with a net average tax rate of 25.1 percent in 2021, slightly higher than the OECD average of 24.6 percent.
In simple words, the take-home pay of an average Canadian, after tax and benefits, was only 74.9 percent of their gross income.
Given below is the median after-tax income for Canadian provinces in 2020:
|Newfoundland and Labrador||59,300|
|Prince Edward Island||59,400|
The tax rate in the country changes from region to region and depends on the salary. Here’s the federal tax rate:
|Federal tax bracket||Federal tax rates|
|Less than $13,808||0%|
|$13,809 to $49,020||15%|
|$49,021 to $98,040||20.5%|
|$98,041 to $151,978||26%|
|$151,979 to $216,511||29%|
|More than $216,512||33%|
This means that anyone making less than $13,808 will not be taxed. Whereas anyone making more than $13,808 will only be taxed on the amount above the bracket.
However, since Canadians pay income tax not only to the federal government but also to the provincial government, provincial tax rates need to be paid attention to as well. Here’s a breakdown:
|British Columbia tax bracket||British Columbia tax rates||Alberta tax bracket||Alberta tax rates|
|Less than $11,070||0%||Less than $19,369||0%|
|$11,071 to $42,184||5.06%||$19,370 to $131,220||10%|
|$42,185 to $84,369||7.7%||$131,221 to $157,464||12%|
|$84,370 to $96,866||10.5%||$157,465 to $209,952||13%|
|$96,867 to $117,623||12.29%||$209,953 to $314,928||14%|
|$117,624 to $159,483||14.7%||More than $314,929||15%|
|$159,484 to $222,420||16.8%|
|More than $222,421||20.5%|
|Saskatchewan tax bracket||Saskatchewan tax rates||Manitoba tax bracket||Manitoba tax rates|
|Less than $16,225||0%||Less than $9,936||0%|
|$16,226 to $45,677||10.5%||$9,937 to $33,723||10.8%|
|$45,678 to $130,506||12.5%||$33,724 to $72,885||12.75%|
|More than $130,507||14.5%||More than $72,886||17.4%|
|Ontario tax bracket||Ontario tax rates||Quebec tax bracket||Quebec tax rates|
|Less than $10,880||0%||Less than $15,728||0%|
|$10,881 to $45,142||5.05%||$15,729 to $45,105||15%|
|$45,143 to $90,287||9.15%||$45,106 to $90,200||20%|
|$90,288 to $150,000||11.16%||$90,201 to $109,755||24%|
|$150,001 to $220,000||12.16%||More than $109,756||25.75%|
|More than $220,001||13.16%|
|New Brunswick tax bracket||New Brunswick tax rates||Nova Scotia tax bracket||Nova Scotia tax rates|
|Less than $10,564||0%||Less than $11,481||0%|
|$10,565 to $43,835||9.4%||$11,482 to $29,590||8.79%|
|$43,836 to $87,671||14.82%||$29,591 to $59,180||14.95%|
|$87,672 to $142,534||16.52%||$59,181 to $93,000||16.67%|
|$142,535 to $162,383||17.84%||$93,001 to $150,000||17.5%|
|More than $162,384||20.3%||More than $150,001||21%|
|Prince Edward tax bracket||Prince Edward tax rates||Newfoundland tax bracket||Newfoundland tax rates|
|Less than $10,500||0%||Less than $9,536||0%|
|$10,501 to $31,984||9.8%||$9,537 to $38,081||8.7%|
|$31,985 to $63,969||13.8%||$38,082 to $76,161||14.5%|
|More than $63,970||16.7%||$76,162 to $135,973||15.8%|
|$135,974 to $190,363||17.3%|
|More than $190,364||18.3%|
Note: The tax rate and brackets may change every year. Also, there may be tax credits. Work with a tax professional for your specific situation.
Average Hourly Wages in Canada
The average hourly wage in Canada is between $28.08 and $32.69 per hour. Some experienced candidates may also earn more; however, some jobs are known for paying the minimum.
The chart below explains the average hourly wages in Canada:
|Average Weekly Wage||Average Hourly Wage||Minimum Hourly Wage|
|British Columbia (BC)||$1,282||$32||$15.20|
|New Brunswick (NB)||$1,049||$26||$11.75|
|Nova Scotia (NS)||$1,089||$28||$12.95|
|Prince Edward Island (PI)||$1,048||$26||$13|
|Newfoundland & Labrador (NL)||$1,206||$30||$12/50|
The average hourly wage, however, differs largely from industry to industry. Here are some of the most popular jobs paying well in the country:
|Pharmacist||$46.37 per hour|
|Store manager||$20.69 per hour|
|Medical administrative assistant||$20.91 per hour|
|Examiner||$29.79 per hour|
|Elementary school teacher||$21.48 per hour|
|Lawyer||$51.28 per hour|
|Writer||$26.99 per hour|
|Accountant||$29.60 per hour|
|Server||$14.99 per hour|
|Electrician||$65 per hour|
Workers can earn more by moving to a better position, gaining more experience, investing in continued education, and learning to negotiate.
Also, employees who are not union members nor covered by a collective agreement tend to make less than employees who are union members.
Household income refers to the combined incomes of all the individuals sharing a household.
|Province||Average Household Income|
|Newfoundland and Labrador||$87,392|
|Prince Edward Island||$74,210|
The average household income in Alberta appears to be the highest, whereas the average household income in Ontario is in the second spot.
Note: The household income increased during the pandemic due to government grants.
Related: Here are some CRA benefits and their payment dates.
Average Income in Canada FAQ
Still have questions about the average annual income in Canada? Check these frequently asked questions:
Will salaries in Canada increase in the future?
Yes, employers are projecting an increase of 4.2 percent in 2023.
What percentage of Canadians make over $100,000?
A total of 3,081,930 people report an income of $100,000 and over in Canada. This indicates that only about 11 percent of Canadians make over $100,000 per year.
Is there a gender pay gap?
There seems to be a gender pay divide in Canada’s income distribution. Over 20 percent of men are making $100,000 or more in Ottawa, Edmonton, and Calgary. On the other hand, less than 15 percent of men in Toronto and Vancouver exceed the $100,000 threshold.
In comparison, no region currently offers $100,000 or more to 20 percent of women. Conversely, only 10 percent of women in Calgary and Ottawa exceed that threshold.
What is a good average salary in Canada?
According to statistics, $44,850 per year or $23 per hour (after tax) is considered a good salary in Canada. About 40 percent of Canadians appear to be making a higher average monthly income in Canada.
What is the upper class in Canada?
Households that make more than double the average household salary are considered to be in the upper class. This means less than 10 percent of Canadians belong to the upper class category.
What is a low salary in Canada?
The average minimum salary in the country is $23.65 per hour or $46,118 per year. Most entry-level positions offer an average annual income of $32,858 per year, and anything under this is considered low.
What is the minimum wage in Canada?
The minimum wage changes from province to province and is usually around $13 to $16.