Ottawa, ON — According to Statistics Canada’s latest “High-Income Canadians” report, Canadians needed to earn at least $293,800 in 2023 to qualify among the top one per cent of income earners.
The report provides a snapshot of Canada’s income distribution and highlights the growing divide between average earners and the country’s wealthiest individuals.
While the average Canadian tax filer reported an inflation-adjusted income of $59,900, members of the top one per cent earned an average of $606,000.
Canada’s Wealthiest Saw Slight Income Decline
The report shows that the top one per cent of earners experienced a 0.6 per cent decline in real income in 2023, following a broader slowdown in earnings growth across most income brackets.
By comparison, the average income among the general population fell 0.3 per cent, continuing a downward trend after a 3.2 per cent decrease in 2022.
The largest drop occurred among the top 0.1 per cent of earners, whose average income dipped one per cent to $2.13 million.
However, the ultra-wealthy — those in the top 0.01 per cent, earning more than $3.48 million annually — bucked the trend, posting a 0.2 per cent increase in income to an average of $7.74 million.
Breakdown of Canada’s Highest Income Groups
| Income Group | Minimum Income (2023) | Average Income (2023) | Change from 2022 |
|---|---|---|---|
| Top 1% | $293,800 | $606,000 | -0.6% |
| Top 0.1% | $930,100 | $2,131,900 | -1.0% |
| Top 0.01% | $3,487,600 | $7,743,100 | +0.2% |
| All Tax Filers (Average) | — | $59,900 | -0.3% |
Sources of Income: Salaries vs. Investments
The data reveals stark differences in how income is earned across the spectrum.
For most Canadians, about two-thirds of total income comes from wages and salaries.
In contrast, high-income Canadians derive a significant share of their earnings from investments, dividends, and capital gains — income sources more resilient to inflationary pressures and labour market fluctuations.
Economic Context
The modest declines in income for most earners reflect the impact of high interest rates, slower economic growth, and inflationary pressures throughout 2023. Economists note that wealthier Canadians are often better positioned to offset such declines through diversified investment portfolios.
Despite small year-over-year declines, Canada’s top earners continue to hold a disproportionate share of national income, underscoring ongoing concerns about income inequality and affordability challenges for middle- and lower-income Canadians.