Canadian taxfilers with earnings in the highest 1% saw their share of total income across the country hold steady between 2012 and 2013.
In total, there were 264,030 individuals that made up the top 1% in the country in 2013, and this group earned 10.3% of the country’s total income—the same percentage as in 2012—according to Statistics Canada data released November 3. On average, taxfilers in this group made $454,800 in 2013—up $5,600 or 1.2% between the two years, which is the same percentage increase as seen, on average, by all Canadian taxpayers.
The highest average income in the top 1% was seen in 2007, when the average earnings of this group was $519,000, adjusted for inflation to 2013 dollars.
British Columbia was home to 11.3% of total 2013 taxfilers that were in Canada’s top 1%. This was up from 11.1% the year before. By comparison, Ontario had 41.2% and Alberta had 23.6%.
In 2013, the minimum earnings for a Canadian to be counted among the top 1% was $222,000. By comparison with our neighbours to the south, a November 2013 article published in Forbes said Americans must earn $394,000 to join the top 1% in that country.
To be considered in the top 5% in Canada in 2013, an individual needed income of $115,700. To be in the top 10%, the minimum income was $89,200.
Canada’s top 1% paid $151,900 on average in income tax in 2013—up $3,000 or 2% compared with 2012. All taxfilers across the country saw their average taxes increase 1.8% over the same period.
Wages and salaries made up 62.6% of total income for those in the top 1%. This is down four percentage points from 2006, but has increased significantly from 1982 when wages and salaries comprised around half of all total income in this group.
In 2013, almost 22% of taxfilers in the top 1% were women. The biggest gender difference was in Alberta, where only 16.6% were women. The smallest differences were found in Ontario and Quebec, with 24%.
The percentage of women that made up the elite group has increased steadily over the past three decades; in 2013, there were 3.6 men for every woman in the group, down significantly from 8.8 men in 1983.