The top 20 per cent of Canadian income-earning families pay 58.3 per cent of all taxes collected in Canada, according to a new study released by the Fraser Institute, which says the country's tax system is already progressive.
The study, Measuring Progressivity in Canada's Tax System, 2026, examines the share of total taxes paid by income groups, comparing that with the share of income earned by each group. The institute said the findings challenge claims that higher-income Canadians do not pay their "fair share" of taxes.
According to the study, the top 20 per cent of income-earning families account for 49.5 per cent of total family income while paying 58.3 per cent of total taxes, including personal income, sales and property taxes. On personal income taxes alone, the group pays 65.3 per cent of the total.
"The idea that top earners don't pay their 'fair share' of taxes ignores the evidence that these families pay a disproportionately large share of the total tax bill," said Jake Fuss, director of fiscal studies at the Fraser Institute and co-author of Measuring Progressivity in Canada's Tax System, 2026.
The report argues that comparing a group's share of income with its share of taxes paid provides an objective measure of the progressivity of the tax system. Based on that approach, the institute said the top 20 per cent of income-earning families are the only income group paying a greater share of total taxes than their share of total income.
The study also found that families in the bottom 20 per cent of income earners pay 1.7 per cent of total taxes while earning 4.3 per cent of total family income in Canada.
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The report cites previous research that found higher taxes on top income earners can lead to behavioural changes, including tax planning, avoidance or evasion, which it says can reduce taxable income and result in governments collecting less revenue than expected.
It also states that increasing taxes on higher-income earners could make Canada less attractive to highly skilled workers, including doctors, scientists, managers and software engineers.
"The assertion that the top 20 per cent of earners in Canada are not paying their fair share is simply not supported by the evidence," Fuss said.
"Canadians should be aware that the country's tax system is already progressive, and calls to raise taxes further on top earners can have unintended economic consequences."
The Fraser Institute described itself as an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, Halifax and Montreal, as well as ties to a global network of think-tanks in 87 countries. The organization said it does not accept government grants or research contracts in order to maintain its independence.