Beyond Income Tax: A Quick Look at the Other Taxes Canadians Pay

When we think about taxes in Canada, income tax usually gets the spotlight. But that’s only one piece of the puzzle. The average Canadian pays thousands more each year through a variety of other taxes—some obvious, others quietly baked into our daily spending.

Here’s a high-level overview of the most common taxes Canadians pay in a typical year, with rough estimates to put it all into perspective.

1. Sales Taxes (GST/HST/PST)

What it is: A tax on most goods and services you buy.

Rough annual cost: ~$2,500–$4,000 per household

Depending on your province, you’ll pay between 5% and 15% on everyday purchases like groceries (some items), clothes, dining out, electronics, and services.

2. Property Taxes

What it is: A municipal tax based on the assessed value of your home.

Rough annual cost: ~$3,000–$5,000 per household (homeowners)

Rates vary by city, but most homeowners pay thousands a year toward things like road maintenance, police, and garbage collection. Renters indirectly pay this through rent, too.

3. Fuel and Carbon Taxes

What it is: Taxes on gasoline and home heating fuels, including a federal carbon tax.

Rough annual cost: ~$800–$1,500 per household

Fuel taxes are included at the pump and on heating bills. The carbon tax alone adds about 17 cents/litre to gasoline in 2025. Rebates offset some of this, depending on your province.

4. “Sin” Taxes (Alcohol, Tobacco, Cannabis)

What it is: Extra taxes on products deemed harmful or non-essential.

Rough annual cost: \~\$300–\$800 per adult (varies by use)

A night out or a trip to the liquor store includes several layers of taxes. Smokers and heavy drinkers pay significantly more.

5. Payroll Taxes (CPP and EI)

What it is: Mandatory contributions from employees (and matched by employers).

Rough annual cost: ~$4,000 per full-time worker

* CPP: Up to ~$3,867/year in 2025 (combined employee + employer)

* EI: Around ~$1,000/year (varies by province)

If you're self-employed, you pay both portions yourself.

6. Vehicle Licensing and Registration Fees

What it is: Annual or bi-annual provincial fees to register and license your vehicle.

Rough annual cost: ~$100–$300 per vehicle

Some provinces also add luxury vehicle taxes or environmental surcharges.

7. Import Duties and E-Commerce Taxes

What it is: Taxes and fees on imported goods and online purchases.

Rough annual cost: ~$100–$300 per household (frequent online shoppers pay more)

Ordering from outside Canada? Expect to pay GST/HST, customs duties, and brokerage fees.

8. Environmental and Recycling Fees

What it is: Fees for recycling electronics, tires, batteries, and more.

Rough annual cost: \~\$50–\$100 per household

These are typically added to the price at checkout when buying things like TVs or tires.

Total: How Much Are We Really Paying?

Let’s add it up for a typical middle-class household of two adults and two kids, owning a home and one car:

A breakdown of estimated annual taxes reveals a significant financial burden. Sales tax accounts for approximately $3,500.00, while property tax adds another $4,000.00. Fuel and carbon taxes contribute $1,200.00, and moderate consumption of goods subject to sin taxes leads to a cost of $500.00. CPP and EI contributions for two workers amount to a substantial $8,000.00. Further expenses include vehicle fees (~$200.00), import and e-commerce taxes (~$200.00), and environmental fees (~$75.00), bringing an estimated total annual tax burden to $17,675.00.

> Note: This is a rough estimate. Actual amounts vary significantly by location, lifestyle, income, and family size.

Final Thought: It's More Than Just April

Canadians pay a wide range of taxes year-round, often without noticing. While income tax gets all the attention during tax season, the majority of our contributions to public services happen quietly—at the pump, in stores, and through monthly bills.

Being aware of where your money goes isn’t just about budgeting—it's about understanding your role in the broader system that funds healthcare, infrastructure, education, and more.