Given the small size of the group (one hundredth of one percent of Canada’s total population), the bright blue box in the first column barely registers as a blip on the screen. The top 0.01% group covers the 2,780 people in Canada who earned the highest incomes in the country. Meanwhile, the areas of the boxes in the second column show the share of overall national income controlled by that group.
The areas of the boxes in the first column show the relative size of each group in terms of population. Our next chart gives a sense for the state of income inequality in Canada. The “upper class” range starts at an income of $236,000 per year - only 1% of Canadians exceed this mark.
A Canadian is “ upper middle class” if they earn at least $100,000 per year - i.e., the top 10% of Canadians. A Canadian is “middle class” if they earn an income of at least $35,000 per year - corresponding to the threshold to join the top 50% of Canadians. While nearly 70% of Canadians consider themselves to be “middle class”, we have to draw lines in the sand somewhere!Įveryone can have (and is entitled to) their own opinion on the matter, but I’ll offer my two cents based on the data above: So… what’s a middle class income in Canada? How about an upper middle class income? The bottom 50% of Canadians earned a median annual income of only $17,800. The top 1% of Canadians earned a median income of $323,500 in 2017, compared against a median income of $35,100 across the country as a whole. While the chart above shows the minimum incomes required to join each of the groups, the next chart shows the median incomes within each of those groups (i.e., the income earned by a person in the middle of the group). Meanwhile, to be a part of the top half of Canadians, you needed to earn a relatively humble income of $35,100 or more. Putting it into words, the top 0.01% of Canadians earned an income of at least $2.7 million in 2017, while the top 1% group earned an income of at least $236,000. The chart below shows the annual income thresholds required to join each of the groups (i.e., the minimum amount earned by those in the group). In total, the dataset encompasses the roughly 28 million Canadians who submitted an income tax return for the 2017 tax year.Ī couple of notes: throughout this analysis, the dollar amounts shown represent individual incomes (total pre-tax amount reported on an individual’s tax return), as opposed to household income figures.Īlso, at the time of my writing this (March 2020), the most recently published Statistics Canada data is from the 2017 tax year. Throughout this analysis, we’ll be dividing the Canadian population base into the groups shown below: Richest, Richer, Rich… and Everybody Else Thus, I’ve tried to let the data speak for itself, and have also tried to refrain from making ‘value judgments’ about whether something is right or wrong. By understanding where you stack up in the distribution, you can seek out more tailored advice.īefore we begin, a quick disclaimer: I am by no means an expert in the fields of economics, history, or politics. What works for someone whose income is in the top 5% might not be suitable for someone in the bottom 50%. I want to highlight these facts and figures for two reasons.ġ) From a citizen’s perspective - I hope that this data can help to drive a healthier and more fact-based discussion on important societal debates like income inequality and “fair” taxation levels for the rich.Ģ) From a financial perspective - I’d like to provide some broader context to the financial recommendations that you receive. What it takes to be a 1%er in different cities, provinces, and territories across the country. Trend analysis going back to the 1980’s, including a look at how the male vs female split of high-income Canadians has changed over time. Comparing the share of income earned by those at the top versus their share of income taxes paid. How much you need to earn to be join the club of ‘high-income Canadians’ (specifically: the top 0.01%, top 0.1%, top 1%, top 5%, top 10%, and top 50% groups). Using data from Statistics Canada, this article will try to get to the bottom of that question, with particular focus placed on: 
In a society where nearly everyone seems to think of themselves as being middle class, what does it mean for someone to have a ‘high income’? Well, if you asked them, they’d tell you that they were all part of the middle class! Rich, Richer, Richest: a Profile of High-Income CanadiansĪpart from being lyrics to a Yardbirds song from the late 60s, what does our cast of characters have in common?
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