Canadian post-tax income fell sightly in 2023

The average after-tax income of census families and persons not in a census family was $82,610 in 2023, down 0.1% compared to 2022, according to data Statistics Canada released Friday.

However, income composition changed between 2022 and 2023. Government transfers fell 2.2% due to the end of Covid-era programs and average employment income fell by 0.8%. At the same time, dividend and interest income rose 13.8% due to increases in interest rates and stock market performance. Average income taxes paid also dropped 1.9%.

Nearly three in 10 families have at least one member aged 65 years or older. Their family’s after-tax income increased $2,220 to $71,950 in 2023. The main sources of income were government transfers (32.8%), private pensions (25.3%), employment income (25.2%) and dividend and interest income (12.3%).

The low-income rate for Canadians aged 65 years and older declined 2.5 percentage points, but the low-income rate for those aged 18 to 24 edged up 0.2 percentage points.