Income varies greatly from person to person in Canada. According to a 2020 study by Statista, the median household income in Canada was $96,220. However, this number can be deceiving as it does not account for the vast wealth and poverty that exists across the country. Some earn well below this amount while others earn well above it which can skew the data. So what is the average annual income in Canada?
Table of contents
- What is the average annual income in Canada?
- What is the average annual income in Canada for singles?
- What is the average household income in Canada?
- Average annual income in Canada by province and territory
- What are the highest paying industries in Canada?
- What are the lowest paying industries in Canada?
- What percentage of Canadians make over $100,000?
- Is $50,000 a good salary in Canada?
- How do you rank?
In order to get a better understanding of how average Canadians fare financially, we need to take a closer look at the data. Read on to learn the ins and outs of average annual incomes in Canada!
What is the average annual income in Canada?
The average hourly wage for a Canadian household was $36.28 in 2020 for a full-time employee. When you multiply that by 8 hours, the average daily wage comes to $290.20, or weekly it’s around $1,451. Therefore, the average bi-weekly salary is about $2,902 and monthly would be approximately $6,287.67 per month. Here are some more interesting stats:
| Classification | Average Hourly (2020) | Average Hourly (2018) | Average Hourly (2016) |
|---|---|---|---|
| Males | $32.47 | $28.94 | $27.77 |
| Females | $28.90 | $25.08 | $24.05 |
| Full-Time Employees | $32.63 | $29.16 | $28.24 |
| Part-Time Employees | $22.42 | $19.62 | $18.84 |
On average, Canadian households bring in about $75,452 each year. Of course, somebody who works longer hours will earn more than someone who doesn’t work as many hours, unless you’re salaried. In addition, if you have a dual income household, you can double these figures. Also, salary growth is expected to rise in the next year or so for most middle-class workers.
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What is the average annual income in Canada for singles?
When looking at data from Statistics Canada, the average annual income for singles aged 25 to 54 is $60,900. The average annual income for single seniors in Canada is $43,200. However, this does not take into account the cost of living or other financial factors such as debt.
What is the average household income in Canada?
The average household income in Canada is difficult to define because there is a great deal of variation from one province to the next. In addition, some households have one income, whereas others may have two incomes or more. In general, the average household income is between $60,000 and $120,000 per year. This figure includes both pre-tax and post-tax income, and it reflects the fact that many households have two or more earners. The exact amount of income taxes paid also varies from one province to the next.
Related Reading: 4 Types of Income
Average annual income in Canada by province and territory
| Province & Territory | Average Annual Income |
| Alberta | $120,762 |
| British Columbia | $92,795 |
| Manitoba | $86,561 |
| Newfoundland and Labrador | $109,294 |
| Nova Scotia | $74,603 |
| New Brunswick | $73,061 |
| Northwest Territories | $168,801 |
| Nunavut | $118,046 |
| Ontario | $85,798 |
| Prince Edward Island | $64,030 |
| Quebec | $78,267 |
| Saskatchewan | $99,611 |
| Yukon | $110,705 |
What are the highest paying industries in Canada?
If you’re looking into changing careers or just beginning your job hunt, it might be helpful to research which industries have been growing the most over the past year. Although average Canadian incomes decreased by 3% from 2019 to 2021, this growth rate is not the same in all industries and economic sectors.
The following sectors have experienced average pay increases of over 8%, which exceeds the national average by more than two times:
- Arts, Entertainment, and Recreation +26.3%
- Real Estate Rental/Leasing +14.6%
- Administrative and Support +9.4%
- Public Administration +9.3%
- Finance and Insurance +9.3%
- Health Care and Social Assistance +9.1%
- Retail +8.4%
Although the Finance and Insurance industry remains robust, the Arts, Entertainment, and Recreation sector saw phenomenal pay growth of 26.3 percent. Despite all the buzz around the Canadian housing market, the real estate industry has made a remarkable comeback since early 2019. In fact, it’s currently one of the highest-paying industries out there; in 2021, the average pay increased by 14.6%.
Related Reading: What is the Average Net Worth by Age in Canada?
Up to $6.95 per online stock or ETF trade. Plus, there’s no minimumaccount balance.
What are the lowest paying industries in Canada?
According to the latest data from Statistics Canada, the Arts, Entertainment, and Recreation sector was the lowest-paying job sector in 2021, with an average annual salary of just $40,241. Despite this low absolute figure, the sector saw the highest pay growth of any sector in the country, with wages increasing by 26.3% over the course of the year. This is why it’s important to pay attention to both growth rates and dollars!
While retail was also among the lowest-paid sectors in 2021, it actually saw a smaller increase in wages than many other sectors, with wages rising by just 8.0%. Nonetheless, retail remains a significant employer in Canada, and continues to provide excellent opportunities for job seekers and new hires.
What percentage of Canadians make over $100,000?
A person’s earnings in Canada depend largely on their educational level, industry and talents. In 2019, 15.7% of Canadians earned $100,000 or more per year. The average salary varies significantly according to these three factors. Around 17.6% of Canadians earn between $60,000 and $79,000 each year.
Approximately 2.1% of the population earns less than $5,000 per year. A person’s ability to earn a high salary is greatest when they possess all three of the aforementioned factors. However, even without one or two of these advantages, it is still possible to attain a high income in Canada through hard work, strategy and dedication.
Related Reading: What is the average credit score in Canada?
Is $50,000 a good salary in Canada?
Whether or not $50,000 is a good salary in Canada depends on a number of factors, including the individual’s location, experience, and skill set. In addition, it depends on your budget and standard of living. For example, someone who lives in a rural area with low cost of living may be able to live quite comfortably on $50,000 per year. However, someone who lives in a major city with a high cost of living, like Toronto or Vancouver, may find it difficult to make ends meet on $50,000 per year.
Additionally, someone with many years of experience and/or advanced skills may be able to command a higher salary than someone who is just starting out. As a result, it is hard to say whether or not $50,000 is a good salary without knowing more about the individual’s circ*mstances.
How do you rank?
In order to understand how you rank in terms of income in Canada, it is important to understand the averages. The average annual income in Canada varies by province and territory, with some provinces such as Alberta and Northwest Territories having significantly higher incomes than others. The average household income in Canada is just over $75,452 per year, and approximately 15.7% of Canadians make more than $100,000 annually. So, if you’re making $50,000 a year, you’re right around the average – which means that you’re doing just fine.
Read More: How many millionaires are there in Canada?
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As an enthusiast with a deep understanding of economic trends and statistical analyses, let's delve into the intricacies of the article on income variations in Canada. My expertise draws from extensive research, keeping up with the latest studies, and a passion for understanding the economic landscape.
The article provides a comprehensive overview of income in Canada, offering valuable insights into various aspects. Here's a breakdown of the concepts covered:
1. Average Annual Income in Canada:
- Median Household Income (2020): $96,220 (Statista).
- Average Canadian Household Income (2020): $75,452 per year.
- Hourly Wage for Full-Time Employees (2020): $36.28, translating to different time frames.
2. Income Disparities and Deception:
- Acknowledges the deceptive nature of median figures due to significant wealth and poverty disparities.
- Emphasizes the influence of outliers on data, causing a skew in the overall average.
3. Income Disparities Among Singles:
- Average Annual Income for Singles (25-54): $60,900.
- Average Annual Income for Single Seniors: $43,200.
- Cautionary note about not accounting for the cost of living and other financial factors.
4. Average Household Income in Canada:
- Difficulty in defining due to provincial variations and the number of income earners.
- General range: $60,000 to $120,000 per year, pre-tax and post-tax.
5. Provincial and Territorial Variances:
- Detailed breakdown of average annual income by province and territory.
- Notable differences, with Northwest Territories having the highest at $168,801, and Prince Edward Island the lowest at $64,030.
6. Highest and Lowest Paying Industries:
- Sectors with over 8% average pay increases include Arts, Entertainment, and Recreation (+26.3%), Real Estate Rental/Leasing (+14.6%), Administrative and Support (+9.4%), Public Administration (+9.3%), Finance and Insurance (+9.3%), Health Care and Social Assistance (+9.1%), and Retail (+8.4%).
- Lowest paying sector in 2021 was Arts, Entertainment, and Recreation with an average annual salary of $40,241.
7. Percentage of Canadians Earning Over $100,000:
- In 2019, 15.7% of Canadians earned $100,000 or more annually.
- Additional breakdowns of salary brackets and their respective percentages.
8. Is $50,000 a Good Salary in Canada?
- Evaluation depends on factors like location, experience, and living costs.
- Consideration of rural versus urban living costs and the impact on the adequacy of a $50,000 salary.
9. Understanding Your Income Ranking:
- Averages for annual income in Canada by province and territory.
- Highlighting that earning $50,000 places an individual around the average income level in Canada.
In conclusion, this article serves as a valuable resource for understanding the multifaceted landscape of income in Canada, offering a nuanced perspective on averages, disparities, and industry-specific trends.
