Income stability masks deeper shifts in earnings, transfers, and regional disparities
Canadian families saw the money in their pockets decline slightly in 2023, the latest year of data analyzed by Statistics Canada.
According to the agency, the average after‑tax income of Canadian census families and unattached individuals was $82,610 in that year, a slight real‑term decline of $60, or 0.1%, compared with 2022. But this modest dip masks deeper shifts in income composition.
Employment income fell by $590 (-0.8%), and government transfers dropped by $300 (-2.2%), driven by the gradual wind‑down of pandemic programs. Meanwhile, dividend and interest income rose by $820 (+13.8%), buoyed by the Bank of Canada’s rate hikes - from 0.50% in January 2022 to 5.25% by December 2023 - and stronger market performance. At the same time, taxes paid decreased by $350 (–1.9%).
Looking at the composition of income, almost 75% of families had employment income, 42% had dividend or interest income, 22% had income from private pensions, 33% from CPP, and 2% from RRSPs.
Older families saw notable gains as households with at least one person aged 65+ (almost 29.5% of all families) saw income climb by $2,220 to reach $71,950. Their income breakdown included 32.8% from government transfers, 25.3% from private pensions, 25.2% from employment, and 12.3% from dividends and interest.
Regionally, Nova Scotia (+1.6%), Prince Edward Island (+1.5%) and British Columbia (+1.4%) reported the largest increases, while Nunavut experienced the steepest drop at -2.4%, with Quebec and Saskatchewan also declining by -1.2% each. These falls were largely linked to reduced employment income and the expiration of province‑specific tax credits.
BC’s census metropolitan areas led the nation, with Victoria (+3.1%), Nanaimo (+2.6%) and Abbotsford–Mission (+1.8%) showing the largest gains. In contrast, Regina and Kitchener–Cambridge–Waterloo each fell by –2.4%, while Drummondville was down –1.8%.
While the prevalence of low income remained at 17.0%, the depth of low‑income grew. In 2023, the relative income gap widened to 41.4%, up from 39.4% a year earlier.
