What Is the Average Income in Canada in 2025?
Canada’s average salary hits $67,467 in 2025, but regional gaps are staggering—some provinces pay double others. Your location determines your paycheck.
The average annual salary in Canada reaches approximately $67,467 before taxes in 2025, reflecting a 4.4% increase from the previous year like the nation experiences measured post-pandemic economic recovery. This translates to weekly wages of $1,297.44 and monthly income of roughly $5,607, with significant provincial variations ranging from Prince Edward Island’s $46,160 to Northwest Territories’ $100,500. Further exploration reveals important regional disparities and sector-specific trends shaping these compensation patterns.
Millions of Canadian workers across diverse industries and regions are experiencing a period of measured economic recovery, while the average annual salary in Canada reaches approximately $67,467 before taxes in 2025, representing a notable 4.4% increase from the previous year that reflects the nation’s post-pandemic economic stabilization. This translates to a weekly wage of $1,297.44 and a monthly income of roughly $5,607, providing workers with tangible evidence of improving economic conditions across the country.
Canada’s average salary reaches $67,467 in 2025, marking a 4.4% increase that signals strengthening post-pandemic economic recovery across diverse industries.
Provincial variations reveal substantial geographic disparities in earning potential, with Ontario leading among provinces at approximately $69,141 annually, while the Northwest Territories commands the highest average salary at $100,500. These regional differences reflect varying economic conditions, industry concentrations, and cost-of-living factors that influence compensation structures. Saskatchewan demonstrates strong individual median income performance at $88,424, contrasting with Prince Edward Island‘s $46,160, illustrating how local economic drivers create significant earning variations across Canadian territories. Ontario’s earnings advantage of $1,674.40 above the national average demonstrates the province’s economic strength despite ranking fifth nationally for weekly earnings.
Key sectors driving wage growth include healthcare, technology, construction, and manufacturing, where skilled labor demand encourages employers to offer competitive compensation packages to attract and retain qualified professionals. These industries benefit from post-pandemic recovery initiatives and increased investment in infrastructure, technology advancement, and healthcare system strengthening, creating upward pressure on wages throughout related occupational categories. The mining, quarrying, and oil and gas extraction sector leads all industries with weekly wages of $2,303, establishing it as the highest-paying sector in Canada.
Understanding median versus average income provides essential context for workers evaluating their earning potential, as median figures often reflect more typical individual experiences than averages, which can be influenced by high-earning outliers. For instance, Yellowknife’s median household income of $141,700 vastly exceeds other Northwest Territories regions like Dehcho at $75,584, demonstrating how urban centers typically offer enhanced earning opportunities compared to rural communities. Workers earning within the pensionable earnings range between $3,500 and $71,300 contribute 5.95% to the Canada Pension Plan alongside their employers.
Minimum wage frameworks establish baseline earning standards, with federal rates reaching $17.25 per hour as of April 2025, while provincial rates range from $15.00 to $19.00 depending on regional cost-of-living considerations. Northern territories like Nunavut lead with $19.00 hourly minimums, acknowledging higher living costs in remote areas. Living wage estimates suggest unattached individuals require approximately $45,000 annually for sustainable economic well-being, providing workers with realistic benchmarks for financial planning and career development decisions.
Frequently Asked Questions
How Does Canada’s Average Income Compare to Other Developed Countries?
Canada ranks among the top 20 countries globally for average salaries, with CEOWORLD Magazine placing it 7th for highest monthly net salaries in 2024.
While Canada’s average income of approximately $67,466 annually remains competitive with developed nations like the UK and Germany, it generally falls below the United States, though Canada’s superior social benefits, lower income inequality, and robust job security help offset these differences.
What Percentage of Canadians Earn Above the Average Income?
Fewer than 50% of Canadians earn above the average income of CAD 67,282, with estimates suggesting approximately 35-40% exceed this threshold due to income distribution skewness.
High earners vastly elevate the national average, while most Canadians cluster around median income levels of $46,160-$88,424. Regional disparities, age demographics, education levels, and industry sectors substantially influence individual earning potential above the statistical average.
How Has Inflation Affected Real Purchasing Power of Average Incomes?
Inflation has substantially eroded real purchasing power despite nominal wage increases, with Canada’s 4.4% salary growth to CAD 67,467 failing to offset rising costs for housing, food, and transportation.
Lower-income households experience particular strain, while the income gap widens to 49 percentage points between top and bottom earners, creating persistent negative real income growth for many Canadians.
Which Provinces Have the Highest and Lowest Average Incomes?
Northwest Territories leads Canadian provinces with the highest average income at approximately $100,500 annually, followed by Saskatchewan’s robust median income of $88,424, while Alberta and Nunavut also demonstrate strong earnings above $74,000.
Conversely, Prince Edward Island reports the lowest median income at $46,160, with Atlantic provinces including Newfoundland and Labrador, Nova Scotia, and New Brunswick clustering between $52,000-$57,000 range.
What Income Is Considered Middle Class in Canada?
Middle-class income in Canada typically ranges from approximately 75% to 150% of median income, translating to CAD 40,000 to CAD 90,000+ annually after taxes for individuals.
However, geographic variations profoundly impact these thresholds, with major cities like Toronto and Vancouver requiring CAD 55,000 to CAD 75,000+ due to higher living costs, while smaller provinces maintain lower middle-class baselines around CAD 40,000 to CAD 50,000.
What’s next?
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors. Full details of coverage, including limitations and exclusions that apply, are set out in the certificate of insurance provided on enrollment.
This article is meant to provide general information only. It’s not professional medical advice, or a substitute for that advice.
Saphira Financial Group does not provide legal, accounting, taxation, or other professional advice. Please seek advice from a qualified professional, including a thorough examination of your specific legal, accounting and tax situation.
