By Tom Parkin
July 21st, 2025
BURLINGTON, ON
The average B.C. family had the largest after-tax income gain while Saskatchewan families took the biggest hit on take-home income.
Change in composition of average household income, 2022-2023
The average Canadian family’s income from working didn’t keep up with inflation in 2023, but family income from savings and investments did significantly better than inflation, according to a Statistics Canada report released Friday.
In 2023, the average family’s income from work fell 0.8 per cent, losing $590. Income from savings or investment rose 13.8 per cent, gaining $820. After-tax income from all sources fell 0.1 per cent in 2023.
The Statistics Canada report was based on tax filer data. The average inflation rate in 2023 was 3.9 per cent, according to the Bank of Canada. Census families include people living together as couples, with or without children, and single parents or guardians with children.
The shift is more class-skewed than average numbers suggest. Nearly 75 per cent of families received income from working. But only 42 per cent received any income from interest or dividends, meaning the after-inflation income gain from savings and investments was concentrated among a smaller number of families and 58 per cent got no benefit from the inflation-beating income hike for savers and investors.
About 22 per cent of families received income from a private pension or RRSP, which are recorded separately from saving and investment income.
The report also found the average family paid $350 less income tax in 2023 than the year before.
BC families’ after-tax income gained most, passes Ontario
The average family gained against inflation in five provinces and fell behind in the other five.
The average B.C. family enjoyed a $1,160 after-tax income gain over inflation, the largest in Canada and enough to push average family income in B.C. above that of the average Ontario family, for whom real after-tax income fell $110.
The average family in Prince Edward Island, Nova Scotia, New Brunswick and Manitoba also kept ahead of inflation in 2023.
After-tax average family income fell furthest behind inflation in Saskatchewan, declining $970. Quebec was close behind with a loss of $960. The average Alberta family took a hit of $360 but continued to enjoy the highest after-tax average family income in Canada at $93,500.
Average after-tax family income, 2022, 2023 and change, by province
Average after-tax family income, 2022, 2023 and change, by province
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