In Canada, a majority of Canadians earn an average yearly income considered middle-class. That said, though, what exactly is middle-class income? Well, annual incomes between $57,375 and $177,872 are considered 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. The middle class isn’t a lifestyle; it’s an income level. 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 – $58,523 |
| Middle Class | $58,523 – $117,045 |
| Upper Middle Class | $117,045 – $258,482 |
| Upper Class | $258,482 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 |
| 14% | On the portion of income that’s $0 – $58,523 |
| 20.5% | On the portion of income that’s $58,523 – $117,045 |
| 26% | On the portion of income that’s $117,045 – $181,440 |
| 29% | On the portion of income that’s $181,440 – $258,481 |
| 33% | On the portion of income that’s $258,481 plus |
What is Considered Middle Class in Canada?
If you’re considered part of Canada’s middle class, you have an annual income between $58,523 and $117,045. Those with this income are seen to make enough money to live a comfortable life. That said, there isn’t much economic co-operation between this income range and the idea of middle-class life.
Even with the small middle-class tax cut for part of your income, this income still makes it hard for tax filers to build wealth and financial security. Especially for those with kids compared to those with the same income and no kids. In fact, the upper-middle class appears to have the highest incomes and the best living standards.
What is defined as the upper middle class is what allows income to drive development by building homes or purchasing a home. Even with some tax cuts, a significant percentage of middle-class earners still struggle to make ends meet.
Average Income in Canada
The average pre-tax income is around $70,000, 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 on the Canadian Income Survey, 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 among provinces. Information for 2024 isn’t available through Statistics Canada yet.
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 where you see this is Nunavut. Many of these communities consist of indigenous people and have incomes that average around the upper-middle-class level. They’re sitting around $170,000 for average annual employment income.
Canadian Income Percentiles
In Canada, different income percentiles 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 at the 50th percentile, it means 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 a 10% household income earn $125,942
- Those who have a 25% household income earn $81,184
- Those who have a 50% household income earn $46,151
- Those who have a 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 in Canada. The percentage of Americans who fit into this category is 15.73%.
What’s Considered a High Salary in Canada?
Those in the 55th percentile or higher are considered to have high salaries. This amount is $162,610. In Canada, there isn’t really a set amount to be considered rich. 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. hold for the upper class can be considered rich.
Retirement Income and the Upper Middle Class
Most Canadians who retire are considered middle class rather than upper-middle class. That’s because the average annual income for retired households is $65,300. While this is a good salary, to achieve this amount, you would need to have $800,000 saved individually and $1.6 million combined to sustain this income for 25 years.
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 annual income of around $100,000 over 25 years.
If you have a pension through your employer, then you’ll be able to calculate what your 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 minimum wage rate can fluctuate. That said, the federal minimum wage rate was just increased to $18.15 on April 1, 2026.
| Province | Minimum Wage Rate (as of October 1, 2026) |
| British Columbia | $18.25 |
| Alberta | $15.00 |
| Saskatchewan | $15.35 |
| Manitoba | $16.40 |
| Ontario | $17.95 |
| Quebec | $16.60 |
| Prince Edward Island | $17.60 |
| Nova Scotia | $17.00 |
| New Brunswick | $15.90 |
| Newfoundland and Labrador | $16.95 |
| Yukon | $18.51 |
| Nunavut | $20.17 |
| Northwest Territories | $17.20 |
While the minimum wage in Canada varies depending on location, it’s based on the cost of living. Places with higher minimum wages are more expensive, and those with lower minimum wages are less expensive.
Living Wages for Canadian Families
For many people, the living wage varies depending on their situation and how many people they support. That said, those above the poverty line and earning a living wage are typically considered 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 is 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? 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 a middle-class income. However, some 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 a 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 with a median net worth 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 to track other securities. Because these are already curated portfolios, they tend to be less risky than investing in multiple securities individually.
Bonds
There are several types of bonds in Canada to choose from, including government and corporate bonds. These are popular to invest in because they’re considered among 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 a Middle-Class Income
Because 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 eligible individuals with children under 18. For those who have a lower annual income and fall below the middle class, the total amount you can receive is $666.41 per month for children under the age of 6, and $562.33 for children between the ages of 6 and 18. That said, you can still get amounts, no matter how much you make; they 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 $1,507.65 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 you can receive in Canada is Old Age Security (OAS). While there is an income requirement you can’t go over to continue receiving this benefit, it’s well above the middle class.
| Age | Maximum Amount | Maximum Income |
| 65 to 74 | $751.97 | $152,062 |
| 75 + | $827.17 | $157,923 |
However, if you fall into the low-income category, then you could qualify for the Guaranteed Income Supplement, which can help raise your income closer to the middle class.
| Marital Status | Income Thresholds | GIS Maximum Monthly Payment Amounts |
| Single, Widowed, or Divorced | Under $22,800 | Up to $1,123.17 monthly |
| Spouse or Common-Law Partner | Under $30,096 if they receive a full OAS pension (combined annual income) | Up to $676.09 monthly |
| Spouse or Common-Law Partner | Under $54,624 if they don’t receive OAS (combined annual income) | Up to $1,123.17 monthly |
| Spouse or Common-Law Partner | Under $42,144 if they receive GIS (combined income) | Up to $676.09 monthly |
Employment Insurance
If you’re employed in Canada and unable to work due to no fault of your own, whether that’s due to a layoff or sickness, Employment Insurance can supplement your income until you’re able to return to work, or your benefits expire.
When it comes to EI, your earnings are based on your annual income. You can get up to 55% of your annual earnings, up to $68,900. If you make more than this, you will earn the maximum amount of $729 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 receive these benefits, though. You can also get them for the following situations:
- Caregiving for someone who is ill or receiving 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.
Middle Class in Toronto Vs. Halifax
When you look at the comparison of middle-class incomes in Toronto vs Halifax, you’ll see that the incomes are higher in Toronto than they are in Halifax. That said, those in Toronto don’t actually make more than those in Halifax due to the increased cost of living.
How Household Size Changes the Middle-Class Threshold
The larger your household is, the more money you’re going to need to earn, and this is considered when middle-class thresholds are set. In fact, the low-income cut-off (LICO) will be lower for a single person than for a family of four. They adjust this number by multiplying the base threshold by the square root of the number of people in the home.
Is Middle-Class Shrinking?
Yes, in fact, the gap between middle-class and upper-class incomes is widening. The main reason for this shift is the investment gains over ordinary income.
Middle-class Canadians also have to overcome other obstacles, such as:
- Income inequality
- Wage stagnation
- Indexation
- Shelter costs (rent-to-income ratio)
- Housing affordability
- Grocery inflation due to the consumer price index
- Cost of childcare
- Take home pay vs payroll deductions, CPP contributions and EI premiums
All of these things contribute to your annual income as well as your monthly costs.
How Does Middle-Class Income Compare to the United States?
In the United States, middle-class income ranges from $55,820 to $167,460 per year. This is a much wider range of numbers than the middle-class income in Canada. The main difference between income levels in Canada and the US is that healthcare costs are higher in Canada.
What the Market Basket Measure Actually Tracks
Canada’s MBM, also known as the Market Basket Measure, tracks the specific set of goods and services required for a modest, basic standard of living. This is used as Canada’s official poverty line by comparing a family’s disposable income to the cost of essentials. This includes food, shelter, and clothing costs.
What’s the Price of a Home a Middle-Class Family Can Afford?
Taking into account real wages, household debt-to-income ratios, and mortgage stress tests used to determine purchasing power. That said, those with an income between $80,000 and $120,000 (whether that’s self-employment income, a single-earner family, or a dual-income household) can purchase a home between $315,000 and $450,000.
Depending on your census metropolitan area, you can either purchase a single-family home for this amount, or you may only be able to purchase a condo, townhome or mobile home. In areas with high housing costs, middle-class households are leaning more towards different types of housing to take advantage of their financial literacy while still maintaining emergency savings.
Debt-to-Income Ratios of Middle-Class Canadians
With constantly rising costs, many Canadians struggle to maintain financial stability and have debt-to-income ratios of roughly 175% to 179%. This means that many Canadians, regardless of family size, owe $1.75 for every $1.79 of disposable income. One of the largest reasons for this is high-value mortgages and urban housing costs in places like Vancouver and Toronto.
Do Wages in Canada Keep Up With Grocery Prices?
In short, no, the wages in Canada do not keep up with grocery prices. That said, overall wage growth has matched general inflation, but food inflation has surged so much that it isn’t consistently outpacing everyday earnings.
While those with intergenerational wealth have no problem with economic mobility, others struggle. Even unionized workers with a collective agreement in this gig economy are struggling. Those with apprenticeships in Red Seal skilled trades even struggle during salary negotiations.
The Percentage of Income That Goes Towards Housing
Even with the tax bracket creep happening, it’s recommended that no more than 30% of your pre-tax income shown on your tax return be used towards your housing costs. However, many households are paying up to 42% of their monthly income for their household costs. Due to this, many Canadians are unable to pay for:
- Regular vacations
- Private schools
It also makes it difficult to build a savings account and take advantage of any unused RRSP contribution room. This is true for both individual earners and high earners, whether they live in Calgary, Halifax, Winnipeg, Saskatoon, or even in rural communities across Atlantic Canada. Newcomers to Canada in the immigration process, even those with credential recognition, are feeling the pinch.
