Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeFP CommentOpinion: Reality check: top earners already pay the most taxes in CanadaThe top 20% of income-earning families earn less than half of all income but pay almost two-thirds of all income taxesLast updated Jul 15, 2026 You can save this article by registering for free here. Or sign-in if you have an account.High-income earners are handy scapegoats for today’s economic challenges but, in reality, they already pay the majority of taxes in Canada, write Jake Fuss and Grady Munro. Photo by Julie - stock.adobe.comAs Canadians grapple with a sputtering economy and the rising cost of living, some advocates want our governments to increase taxes on high-income individuals. According to this narrative, the tax system is unfair and governments should raise taxes on “the rich” to pay for a more generous social safety net that will supposedly help improve affordability.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorThe image of “robber barons” who don’t pay their fair share of taxes may provide a useful scapegoat for today’s problems, but proponents of this narrative ignore the reality of how governments currently distribute taxes in Canada: top-earners already pay the majority of taxes.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againAccording to a new study co-authored by one of us (Fuss) and published by the Fraser Institute, in 2026 the top 20 per cent of income-earning families will pay 65.3 per cent of all personal income taxes and 58.3 per cent of all taxes (income taxes, sales taxes, property taxes and so on) paid to all three levels of government. At the same time, the bottom 20 per cent will pay just 0.7 per cent of personal income taxes and 1.7 per cent of total taxes.Is this distribution of taxes fair? Those favouring higher taxes for top-earners rarely define “fair,” but the study offers some insight by comparing the share of taxes paid relative to the share of income earned across each income group.For example, though they earn less than half (49.5 per cent) of total income in Canada the top 20 per cent of income-earning families pay roughly two-thirds of all personal income taxes and more than half of total taxes. Their share of taxes paid is thus larger than their share of income. The bottom 80 per cent of income-earning families all pay a smaller share of taxes than their share of income. For example, the bottom 20 per cent earn 4.3 per cent of total income yet pay less than one per cent of personal income taxes and less than two per cent of total taxes.These disparities are due to the “progressivity” of our tax system, which imposes higher tax rates as you earn more income — for example, at $50,000 the federal income tax rate on the next dollar earned is 14 per cent, while at $150,000 it’s 26 per cent. This progressivity leads to a greater concentration of the tax burden on Canadians who earn higher incomes. Less progressive tax systems — those with a single-rate income tax, say, as Alberta had for many years — tend to spread out the tax burden across all income groups.As things stand, Canada has one of the most progressive tax systems in the rich world. The rate at which we raise people’s tax burden as they earn more income is higher than in most other industrialized countries. That high progressivity can discourage Canadians from working, saving or investing as higher tax rates reduce the financial rewards of these activities. It’s not hard to imagine how this higher tax burden could lower Canadians’ productivity.High-income earners are handy scapegoats for today’s economic challenges but, in reality, they already pay the majority of taxes in Canada. Rather than continue to mislead Canadians, proponents of a more generous social safety net should be honest about the tax system and the costs of more government.Financial PostJake Fuss is director of fiscal studies at the Fraser Institute, where Grady Munro is a senior policy analyst. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.