The average worker in Canada faced a tax burden on labour income (tax wedge) of 30.8% in 2012 compared with the OECD average of 35.6%. Canada was ranked 25 of the 34 OECD member countries in this respect (in decreasing order).
Some examples of the results reflected in the Overview charts for Canada are:
- The tax burden for the single average worker decreased by 2.4 percentage points from 33.2% to 30.8% between 2000 and 2012. Between 2009 and 2012, there was an increase of 0.2 percentage points.
- The corresponding figures for the OECD were a decrease of 1.1 percentage points from 36.7% to 35.6% between 2000 and 2012 and an increase of 0.6 percentage points between 2009 and 2012.
- The tax burden for the one-earner couple with 2 children at the AW level decreased by 5.7 percentage points from 23.9% to 18.2% between 2000 and 2012. Between 2009 and 2012, there was an increase of 1.2 percentage points.
- The corresponding figures for the OECD were a decrease of 1.6 percentage points from 27.7% to 26.1% between 2000 and 2012 and an increase of 1.1 percentage points between 2009 and 2012.
The links below also provide a breakdown of the average and marginal tax wedges into five separate components as percentage of total labour cost:
- central income taxes,
- local income taxes,
- employee social security contributions,
- employer social security contributions, and
- family benefits.
Download the AVERAGE graphical expositon file, 2012
Download the MARGINAL graphical expositon file, 2012