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In Canada, a majority of Canadians make an average yearly income that’s considered to be middle-class income. That said, though, what exactly is middle-class income? Well, yearly annual incomes between $53,359 and $137,000 are considered to be middle class. In fact, many middle-class Canadians realize they’re middle-class. They don’t realize that they’re at the higher end of the class, even the upper middle class.
Different Income Classes in Canada
It’s often associated with things like:
- Purchasing a home
- Having a vehicle
- Saving for retirement
The fact is, though, you can be considered middle-class without having any of those things. Middle-class isn’t a lifestyle; it’s an income amount. Let’s take a look at what incomes are considered middle class and which are considered upper middle class, as well as the other income classes.
| Class | Income Amounts |
| Lower Class | $0 - $53,359 |
| Middle Class | $53,359 - $106,717 |
| Upper Middle Class | $106,717 - $235,675 |
| Upper Class | $235,675 and up |
Only some of those who are in the lower class income bracket and have a lower income are under the poverty line. Many of these people are on social assistance programs to help find work and raise their incomes. These programs are still considered to be taxable income.
It’s also important to remember that where you fall in these classes will also affect your tax rate. Keep in mind that the income reflected below is before-tax income, not after-tax income.
| Tax Rate | Income |
| 15% | On the portion of income that’s $0 - $53,359 |
| 20.5% | On the portion of income that’s $53,359 - $106,717 |
| 26% | On the portion of income that’s $106,717 - $165,430 |
| 29% | On the portion of income that’s $165,430 - $235,675 |
| 33% | On the portion of income that’s $235,675 plus |
Average Income in Canada
In Canada, over 15% of people have an annual salary of over 15%. That said, the average income is around $70,000 pre-tax, and the median after-tax income is $66,800. This is the national average, though, and it includes everyone in Canada. If you break down the average income by province for 2022 and 2023, then you get different results.
| Province | Average Income for a Single Person in 2022 | Average Income for a Single Person in 2023 | Median Income (Household) 2023 (After Tax) |
| British Columbia | $50,749 | $66,232 | $67,500 |
| Alberta | $60,000 | $74,237 | $77,700 |
| Saskatchewan | $51,300 | $88,424 | $67,700 |
| Manitoba | $59,426 | $58,500 | $63,000 |
| Ontario | $52,600 | $63,369 | $70,100 |
| Quebec | $53,300 | $57,506 | $59,700 |
| Prince Edward Island | $47,515 | $46,160 | $59,400 |
| Nova Scotia | $45,900 | $56,550 | $57,500 |
| New Brunswick | $43,400 | $57,336 | $56,900 |
| Newfoundland and Labrador | $57,900 | $52,562 | $59,300 |
| Yukon | $67,207 | $62,500 | $86,300 |
| Nunavut | $82,875 | $74,900 | $118,000 |
| Northwest Territories | $64,056 | $77,900 | $127,000 |
As you can see, all of these annual incomes fit into the middle-class category. You can also notice that some provinces have way higher average annual incomes than others. Nunavut has the highest average annual income, and the Northwest Territories has the highest median household income compared to other provinces.
Employment Based on Provinces
While the cost of living is a major factor in the average salary in each province, another major factor is the types of employment available and what the average wages are for those types of employment. Plus, different provinces have different minimum wages, which will also affect the overall average incomes.
Another important factor to consider is that some towns in each province have considerably higher average salaries than others. This is for a lot of reasons, but it could be because they’re mining towns or they offer a certain specialty that other places don’t.
One territory that you see this in is Nunavut. Many of these communities consist of indigenous people and have incomes that average around the upper middle class. They’re sitting around $170,000 for a yearly average employment income.
Canadian Income Percentiles
In Canada, there are different income percentiles that make up the working population. This is referred to as income distribution. The percentage you fall into is based on what you earn. For example, if you fall into the 50th percentile, then that means that 50% of people earn more than that amount and 50% earn less.
According to Statistics Canada data, the income levels that make up these percentiles are:
- Those who have 1% household income earn $315,911
- Those who have 5% household income earn $162,210
- Those who have 10% household income earn $125,942
- Those who have 25% household income earn $81,184
- Those who have 50% household income earn $46,151
- Those who have 75% household income earn $22,465
It’s important to keep in mind that these are the current numbers. These numbers will fluctuate yearly depending on what the average annual salary is and how much it varies.
How Many Canadians Make Over $100,000 Annually?
In Canada, it’s estimated that only 11% of Canadians bring in $100,000 annually as a single income. Surprisingly, only 19.1% of Canadian households bring in $100,000 annually. In fact, more people in the United States earn incomes above $100,000 than Canadians. The percentage of Americans that fit into this category is 15.73%.
What’s Considered a High Salary in Canada?
Those who are in the top 5 percentile or higher are considered to have a high salary. This amount is $162,610. To be considered rich in Canada, there isn’t really a set amount. That said, those who have an income that’s higher than the minimum threshold for the upper class can be considered rich. Once you hit the status of a millionaire, then you’re definitely considered to be rich, but this category only includes 4% of Canadians.
Retirement Income and the Upper Middle Class
Most Canadians who retire are considered to be middle class, not upper middle class. That’s because the average Canadian income for those who are retired is $65,300 per year per household. While this is a good salary, in order to achieve this amount, you would need to have $800,000 saved individually and $1.6 million combined in order to have this income amount sustain you for 25 years.
In order to have a retirement income that’s considered to be upper middle class in Canada, you would need to have around $1.7 million saved. This would give you an average income of around $100,000 annually for a total of 25 years.
If you have a pension through your employer, then you’ll be able to calculate what you’re retirement income would be based on when you choose to retire. Keep in mind, though, that you can have more than one source of retirement income. Even if you have an employment pension, you can still have an RRSP or other forms of retirement income.
Minimum Wage Throughout Canada
Depending on where you live in Canada, the rate for minimum wage can fluctuate. That said, the federal minimum wage rate was just increased from $15.55 to $16.56 on April 1, 2023.
| Province | Minimum Wage Rate (as of Oct 1, 2023) |
| British Columbia | $16.75 |
| Alberta | $15.00 |
| Saskatchewan | $14.00 |
| Manitoba | $13.50 |
| Ontario | $16.55 |
| Quebec | $15.25 |
| Prince Edward Island | $14.50 |
| Nova Scotia | $15.00 |
| New Brunswick | $14.75 |
| Newfoundland and Labrador | $15.00 |
| Yukon | $16.77 |
| Nunavut | $16.00 |
| Northwest Territories | $16.05 |
While the minimum wage in Canada varies depending on location, they’re based on the cost of living. The places that are more expensive have a higher minimum wage, and those that are a bit lower have a lower minimum wage.
Living Wages for Canadian Families
For many people, having a living wage varies depending on their situation and how many people they’re supporting. That said, those who are above the poverty line and making living wages are typically considered to be middle class (working class) and have some disposable income.
For a single person, the average living wage is around $45,000 per year. For a couple, the living wage sits around $50,000, and the average living wage for families is around $60,000 - $70,000. Honestly, though, based on your circumstances, it could be more or less.
What exactly is a living wage, though? While this means you can live comfortably, pay your bills and still have some funds left over.
Jobs That Make Up Middle-Class Wages in Canada
Most jobs in Canada are considered to provide middle-class income. However, there are some that pay more than others. Depending on your position and experience, you could also make much more than the average person.
Here is a list of some of the higher-paying jobs that provide a Middle-Class to Upper-middle-class income.
- Pharmacist
- Software Developer
- Welder
- Surgeon
- Construction Forman
- Engineer
- Electrician
- Construction Manager
- Marketing Manager
- Lawyer
- Banker
- Geoscientist
- IT Manager
- Pilot
- Architect
- Facilities Manager
- Research Scientist
- Human Resources Manager
Other Ways To Earn Middle-Class Income
If you’re lower middle class looking to become one of the many middle-class families, having a job that pays above average isn’t the only way to do so. In Canada, there are plenty of other ways to increase your wealth. You can do so even while having a low-income job. One of the most popular ways to do this is with investments.
In this country, investing is becoming more popular than ever due to the recent influx of inflation, which is making it harder for Canadians to afford everyday necessities such as food, clothing, and even rent. Many parents who are earning median net worth earners are looking for other ways to afford a comfortable life for their children, while others just want to earn a middle income and afford to have a family. Here are a few investments that can help,
Stocks
Contrary to popular belief, you don’t have to have a lot of capital to start investing in stocks. In fact, access to today's technology has made investing in stocks simpler than ever. While you still can choose to use an investment brokerage to manage your investments, you can also work with an online brokerage, like Wealthsimple, which lets you control your own investments and purchase as much or as little as you like.
ETFs
If you don’t wish to invest in stocks directly, another option is to invest in ETFs, also referred to as exchange-traded funds. These are a multitude of different types of securities grouped together with the purpose of tracking other securities. Because these are already curated portfolios, they tend to be less risky than investing in multiple securities individually.
Bonds
There are quite a few different types of bonds in Canada to choose from, including government bonds and corporate bonds. These are popular to invest in because they’re considered to be some of the safest investments. This is because bonds are technically a form of loan between the purchaser and the issuer. However, because this is technically a loan, you don’t have company ownership like you would. That said, your return is pretty much guaranteed.
Benefits You Can Get With Middle-Class Income
Due to the fact that the federal government has been trying to make life more affordable for those who are considered to be low-income, there are some government benefits you could be entitled to. These include:
Let’s take a look at how these benefits work.
Canada Child Benefit
This is a tax-free monthly payment given to those who are eligible and have children under the age of 18. For those who have a lower annual income and fall below the middle class, the total amount you can receive is $648.91 per month for children under the age of 6, and $547.50 for children between the ages of 6 and 18. That said, you can still get amounts no matter how much you make, the amounts will just be reduced.
Canada Pension Plan
The Canada Pension Plan, also known as CPP, is a pension supplement that most Canadians are eligible for when they hit retirement age. How much you can get with CPP is determined by how long you’ve worked in Canada and how many years you’ve contributed to CPP. However, the maximum amount that you can currently receive is $1,364,60 per month.
In Canada, you can choose when you wish to start collecting your CPP. You can start collecting as early as 60 or as late as 70. However, you do have to start collecting by the time you turn 70. Waiting until you’re 60 will make your payments slightly larger, but if you’re looking for standard CPP payments, then the ideal age to start collecting is 65,
Old Age Security
Another government pension that you can receive in Canada is Old Age Security, also known as OAS. While there is an income requirement you can’t go over to continue receiving this benefit, it’s well above middle class.
| Age | Maximum Amount | Maximum Income |
| 65 to 74 | $727.67 | $148,451 |
| 75 + | $800.44 | $154,196 |
However, if you fall into the low income category, then you could qualify for the Gauranteed Income Supplement which can help raies your income closer to middle class.
| Marital Status | Income Thresholds | GIS Maximum Monthly Payment Amounts |
| Single, Widowed, or Divorced | Under $21,624 | Up to $1,065.47 monthly |
| Spouse or Common-Law Partner | Under 28,560 if they receive full OAS pension (combined annual income) | Up to $641.35 monthly |
| Spouse or Common-Law Partner | Under $51,840 if they don’t receive OAS (combined annual income) | Up to $641.35 monthly |
| Spouse or Common-Law Partner | Under $39,984 if they receive GIS (combined income) | Up to $1,065.47 monthly |
Canada Carbon Rebate
Another benefit you could qualify for if you’re middle class in Canada is the Canada Carbon Rebate. However, how much you can receive for this benefit is based on which province you live in, since each province has their own rebate amounts.
The idea behind this rebate is to provide a tax-free payment to help those who qualify recoup some of the carbon tax they pay throughout the year. There’s a basic amount you can get as well as small and rural communities supplement. That said, all you need to do to start receiving the benefit is file your annual income tax return. Those who are eligible with receive benefits automatically.
Employment Insurance
If you’re employed in Canada and unable to work due to no fault of your own, whether that’s due to layoff or sickness, Employment insurance can supplement your income until your able to return to work, or your benefits expire.
When it comes to EI, how much you earn is based on your annual income. You can get up to 55% of your annual earnings for amounts up to $63,200. If you make more than this, then you will earn the maximum amount which is $668 per week. For regular benefits, you can get up to a maximum of 45 weeks, whereas sickness benefits will give you 26 weeks. These aren’t the only situations where you could recieve these benefits though. You can also get them for the following situations:
- Caregiving for someone who is ill or recieving end of life care
- Maternity leave
- Paternity leave
The amounts for these situations are the same, however, the length of time you’re entitled to use your benefits varies.
Final Thoughts
Since the majority of Canadians are considered to be middle-class, it makes sense that many people would consider it to be based on lifestyle rather than income, even though those with only half the possessions we consider middle class could still be middle class. It’s also possible to make a single income that isn’t considered to be middle-class but has a total income from the household that’s middle-class income or even upper-middle-class income.
No matter where you fall on the class scale, though, you want to look at the bigger picture and ensure that you’re making at least a living wage. Depending on where you live, the living wage is going to change, but ideally, $45,000 is the minimum for unattached individuals. The more people that are in your household, the higher the income will be needed to make a living wage.
