Throughout the country, there are many different income levels, and many of these vary by location. In every portion of the country, there are different opportunities and fluctuating costs of living. That said, we’re going to take a look at the income of those in the top 1%.
Who exactly are the top 1%? Well, those are the people who earn an average annual income of $293,800. From there, you have the top 2%, 5%, and 10%.
Income Percentiles in Canada
In Canada, there is a wide variety of income earners. In fact, Canadian income earners are divided into income percentiles. Let’s take a look at some of these percentiles. These are household income percentiles and how they reflect on income distribution. We’ll also take a look at what the income gap looks like in each percentile.
Top 0.1%
The top 0.1% of earners in Canada in 2026 earn upwards of $1.26 million annually. These are people who are not only considered upper class, but some may even consider them Canada’s richest people. Income earners in this percentile make up only a small share of Canadians.
People in this income group often have more than one source of income. Their total income consists of investment and employment income. Not only do they usually have the highest average income, but they also tend to have the highest average dividend income along with their investment returns.
Top 1%
While the average income for the top 1% of earners is $606,000 annually, the threshold income is much lower at $293,800 annually. Those considered part of the top 1% are also considered upper class. There are quite a few career paths in Canada that can lead you to earn an income comparable to that of the 1%.
Top 2%
As of 2026, to be in the top 2% of income earners, you need to earn a minimum of $190,000 per year. This would mean you would fall into the category of upper-middle class. Many careers that earn incomes in the top 1% are also found among those in the top 2%.
Top 5%
The threshold amount for those who are in the top 5% is $162,210 annually. Those in the top 5% are also part of the upper-middle class. They earn slightly more than the top 10%, who aren’t that much above the average Canadian.
When keeping this number in mind, though, it’s important to remember that this is gross income. It’s not the net amount that you actually take home. That varies depending on which province you live in, since the income tax you pay will differ by province. Federal rates are Canada-wide.
Top 10%
The top 10% of income earners are also considered upper-middle class. The threshold amount for the top 10% is $125,945. This amount is only slightly higher than the top threshold for middle-class income, which is $106,717.
Other Income Percentiles in Canada
The income percentiles we discussed above are for the top income earners. That said, the average Canadian income doesn’t fit into these categories. A good majority of Canadians actually fit into the middle-class category, which includes incomes from $58,523 to $117,045 annually.
Canadian incomes that fall into the middle-class category, as well as those considered lower-class, can be found in the remaining percentiles. These percentiles are:
- 25%, which has an income of $81,184
- 50%, which has an annual income of $46,151
- 75%, which has an annual income of $22,456
What’s important to remember about these percentiles is that they don’t mean that only 50% of the population earns $46,151. It means that 50% of people earn more than $46,151, while 50% earn less than that amount.
Keep in mind that these numbers aren’t just based on your yearly salary; they also include all other taxable income.
Top 1% Income by Province in 2026
While there is a threshold amount you need to earn in Canada to be considered part of the top 1%, the average will vary depending on where you live. Let’s take a look at the average amount the top 1% in Canada earn per province.
| Province | Top 1% Income Earners, Median Income |
| British Columbia | $546,100 |
| Alberta | $495,300 |
| Saskatchewan | $449,700 |
| Manitoba | $472,900 |
| Ontario | $534,800 |
| Quebec | $482,300 |
| Nova Scotia | $434,900 |
| New Brunswick | $457,900 |
| Prince Edward Island | $386,500 |
| Newfoundland and Labrador | $406,100 |
| Yukon | $357,100 |
| Nunavut | $357,100 |
| Northwest Territories | $357,100 |
As you can see, British Columbia is the highest if we go by province. These numbers could differ if we break them down further by individual cities and rural areas.
Top 1% and Taxes
When it comes to taxes, what you pay is based on what you earn. Therefore, the more that you earn, the more you pay in taxes. Let’s take a look at the tax rates in Canada.
In Canada, everyone pays the same tax rates on their tax return. On the first $58,523 you earn, the tax rate is 14%. Any portion above that amount, up to $117,045, is subject to a tax rate of 20.5%. For amounts from $117,045 to $181,440, the tax rate is 26%; for amounts from $181,440 to $258,482, the tax rate is 29%. Any income earned above $258,482 is subject to a 33% tax rate.
Those in the top 1% of income earners will pay the most in taxes. That said, though, most Canadians earn an income that doesn’t qualify to be in the top 1%. In fact, if you look at Canada’s income percentiles, those who are in the top 20% of income earners actually pay the majority of income taxes every year. The top 1 percent are just a small part of this.
Provincial Tax Rates
The tax rates listed above are federal. Based on where you live, you’ll also have to pay a specified provincial tax rate, whether you’re part of the top income groups or not. When you do your tax return, you’ll fill out provincial income tax forms for your provincial income taxes in 2026.
| Province/Territory | Tax Rate |
| British Columbia | 5.06% on amounts from $0 – $50,363 7.7% on $50,363- $100,728 10.5% on $100,728 – $115,648 12.29% on $115,648- $140,430 14.7% on $140,430 – $190,405 16.8% on $190,405 – $265,545 20.5% on $265,545 and over |
| Alberta | 8% on the first $61,200 10% over $61,200 up to $154,259 12% over $154,259 up to $185,111 13% over $185,111 up to $246,813 14% over $246,813 up to $370,220 15% over $370,220 |
| Saskatchewan | 10.5% first $54,532 12.5% over $54,532 up to $155,805 14.5% over $155,805 |
| Manitoba | 10.8% first $47,000 12.75% over $47,000 up to $100,000 17.4% over $100,000 |
| Ontario | 5.05% on the first $53,891 9.15% over $53,891 up to $107,785 11.16% over $107,785 up to $150,000 12.16% over $150,000 up to $220,000 13.16% over $220,000 |
| Quebec | 14% on the first $54,345 19% over $54,345 up to $108,680 24% over $54,345 up to $108,680 25.75% on amounts over $132,245 |
| Nova Scotia | 8.79% on the first $30,995 14.95% over $30,995 up to $61,991 16.67% over $61,991 up to $97,417 17.5% over $97,417 up to $157,124 21% over $157,124 |
| New Brunswick | 9.4% on the first $52,333 14.0% over $52,333 up to $104,666 16% over $104,666 up to $193,861 19.5% on amounts over $193,861 |
| Prince Edward Island | 9.5%% on the first $33,928 13.47% over $33,928 up to $65,820 16.60% over $65,820 up to $106,890 17.62% over $106,890 up to $142,250 19% over $142,250 |
| Newfoundland and Labrador | 8.7% first $44,678 14.5% over $44,678 up to $89,354 15.8% over $89,354 up to $159,528 17.8% over $159,528 up to $223,340 19.8% over $223,340 up to $285,319 20.8% over $285,319 up to $570,638 21.3% over $570,638 up to $1,141,27 21.8% over $1,141,275 |
| Yukon | 6.4% on the first $58,523 9% over $58,523 up to $117,045 10.9% over $117,045 up to $181,440 12.93% over $181,440 up to $258,482 12.80% over $258,482 up to $500,000 15% on amounts over $500,000 |
| Nunavut | 4% on the first $55,801 7% over $55,801 up to $111,602 9% over $111,602 up to $181,439 11.5% on amounts over $181,439 |
| Northwest Territories | 5.9% on the first $53,003 8.6% over $53,003 up to $106,0091 2.2% over $106,009 up to $172,346 14.05% on amounts over $172,346 |
When you take into account the taxes you need to pay, you’d factor in the provincial rates as well as the federal rates. The nice thing is that the tax rates are based on your total income, not your total wealth. Your net worth is not a factor when filing your taxes.
It is important to know what your taxable income consists of. Spousal support payments, as well as other types of support income, can be considered as taxable income. Refundable tax credits and other write-offs can help you reduce this tax burden.
Gender and the Top 1%
Now that we’ve started breaking down 1% income earners across the country, is there a difference by gender in 2026? Well, in Canada, the average salary for a male in the top 1% is $627,000, while the average for a female in the top 1% is $547,50000.
In fact, only 25% of all 1% of Canadian tax filers are female, while the other 75% are male. While we don’t know each person’s sources of income, the numbers reflect income inequality.
What Jobs Pay the Top 1% Salaries?
In Canada, many jobs pay salaries comparable to those of the top 1% earners. These include:
- Orthodontists
- Dentists
- Anesthesiologists
- Specialist Physicians
- Corporate Lawyers
- Lawyers on the Partner Track
- Investment Bankers
- Portfolio Managers
- Software Engineering Managers
- Mining Engineers
- Oil and Gas Workers
- Private Practice Doctors
- Air Traffic Controllers
That said, you can also earn this type of income by being a lawyer with lots of billable hours, owning equity, owning rental properties, and engaging in entrepreneurship with passive income streams.
Top 1% Income by City
Depending on which city you live in, the total amount for the top 1% of income earners will vary. Let’s take a look at some of the most popular cities in Canada.
| City | Top 1% Income |
| Calgary | $667,600 |
| Toronto | $658,800 |
| Vancouver | $615,00 |
| Montreal | $589,700 |
| Winnipeg | $594,300 |
How Much Taxes Do the Top 1% Pay?
When it comes to income taxes in Canada, income thresholds determine how much T1 tax filers pay annually to the Canada Revenue Agency. Those in the top 1% pay 22% of all income taxes in Canada and 45%-55% of their income, depending on their marginal tax rate.
To reduce your tax bill as much as possible, it’s important to take advantage of tax planning and utilize the capital gains inclusion rate if you qualify.
Is a $500,000 Income Enough in Vancouver?
Yes, in fact, this income is more than enough to live comfortably in Vancouver in 2026. You can even live an upper-class lifestyle on this income since it puts you well above the average earnings. Even with a high cost of living, having an income above $150,000 puts you in a great position.
Top 1% in Canada Vs the US
The top 1% in Canada and the US are not the same. In fact, in Canada, the top 1% iarethose who earn above $293,000, with an average of $606,000. In the US, an individual earner needs around $450,100, and a household needs around $659,050.
Number of Canadians who are in the Top 1%
When we look at wealth accumulation, there are around 300,000 tax filers considered to be in the top 1%. This includes those with a net income of $7.5 million or more or who earn more than $294,000 per year.
Top 1% Net Worth Threshold
Whether you live in Canada or the US, the net worth threshold for the top 1% differs. In Canada, you must have a minimum net worth of $7.5 Million, whereas in the US, you need a minimum of $13.7 Million.
How High Earners Legally Reduce Their Taxes
While there is an alternative minimum tax, high earners can still reduce their annual income tax bill and effective tax rate. They can do so by:
- Making RRSP contributions
- Growing stock options in a TFSA
- Making small business deductions
- Corporate-owned life insurance
- Prescribed rate loans
- Donating appreciated stock
- Using a holding company
- Restructuring executive compensation
- Timing the bonus structure
Business Owners Vs. Salaried High Earners
While business owners and salary earners can both earn in the top 1% in 2026, the biggest difference is that one is more stable than the other. Being a business owner means that you can have lulls and your income isn’t as consistent, whereas salaried employees have an income that never changes.
