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By Jake Fuss and Milagros Palacios

Have you ever wondered how much you actually pay in taxes each year? While tax returns help us understand how much income tax we pay, it’s difficult for most Canadians to calculate their total tax bill.

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In Canada, we pay many different taxes to the federal, provincial and local governments. Some of these taxes are visible but many are hidden, which adds to the confusion about how much we actually pay. Not only do we pay income taxes, but we also pay property taxes, payroll taxes such as the Canada or Quebec Pension Plans, health taxes, sales taxes such as the GST, carbon taxes, taxes on gasoline, taxes on imported goods, “sin” taxes and so on.

Adding up all these taxes is not easy. But in 2019, we estimate the average Canadian family (consisting of two or more people) will pay $52,675 in total taxes — or 45% of their $117,731 income. In other words, if you paid all your taxes for 2019 up front, you’d give government every dollar you earned before June 14, which we call Tax Freedom Day. After working the first 164 days of the year for governments, you’re finally working for yourself and your family.