What is the Middle Class Income in Canada? (2024)

If you’ve ever wondered how your personal finances stack up and what “class” your income officially puts you in, here’s what you need to know: If you earn between $53,359 to $106,717 after tax, then you fall within the middle class income in Canada.

According to a recent survey by Statistics Canada, 70% of Canadians consider themselves to be in the ‘middle class’ because they are not too rich, nor are they too poor, they pay their taxes, maybe own a home, or drive a car, so they are considered middle class.

However, the definition of middle class has shifted over the past few decades. What constituted middle class in the past may not hold true today. In the 80s, for instance, having a factory job might have allowed someone to afford a small house, support a family, and raise four kids comfortably. But today, achieving such a lifestyle might seem aspirational for the middle class.

The rising cost of living in Canada has substantially influenced the way Canadians live and has sparked debate over the definition of middle class. Join us as we delve into the intricacies of middle class income in Canada, examining how it varies across provinces and cities in relation to suggested living expenses.

Key Takeaways

• A middle-class annual income in Canada typically falls within the range of $53,359 to $106,717. 
• This income bracket corresponds to earning between 75% and 200% of the median household income after tax.
• Canadians with household incomes ranging from $106,717 to $235,675 are classified as upper middle class, while those with incomes exceeding $235,675 are considered upper class.

What is Middle Class Income In Canada?

Middle-class income in Canada falls within a range that typically begins slightly below the median after-tax household income and extends well above it. In Canada, if your income falls within 75% to 200% of the median after-tax household income, you’re generally considered to be part of the middle class.

Currently, the median after-tax personal income is $68,400. This means that middle-class income in Canada ranges between $53,359 and $106,717 for individuals. Therefore, anyone earning within this bracket can identify themselves as part of the middle class.

However, the income brackets indicating the middle class can vary significantly across different cities and provinces in Canada, influenced by local economies and the cost of living. For instance, in Nova Scotia, earning anywhere from $44,000 to $110,000 might classify you as middle-class. However, in Alberta, that range shifts to $58,000 to $150,000. This discrepancy arises from the fact that the median household income in Alberta is higher than that of Nova Scotia.

What is Considered Middle Class in Canada?

The middle class in Canada comprises individuals and households positioned between the upper class and those living at or near the poverty line, with income levels serving as a primary defining factor.

However, beyond mere income figures, many view “middle class” as a sociological concept, indicative of a certain status or lifestyle. For instance, here are several markers often associated with belonging to the middle class:

• Owning a home
• Having a car
• Contributing to retirement savings
• Securing and maintaining healthcare coverage for yourself and your family
• Enjoying discretionary income for family vacations
• Supporting children’s extracurricular activities such as sports, music lessons, or other educational pursuits.

The ability to afford these things, whether through careful financial planning or simply by meeting these expenses regardless of affordability, creates a perception of the middle class. This lifestyle often springs to mind when people hear the term “middle class,” rather than focusing solely on income levels.

Generally, the middle class is categorized into three segments based on income criteria:

• Lower Middle Class: Typically falls between 75% and just below the median income.
• Middle Class: Encompasses incomes ranging from around 75% to 200% of the median income.
• Upper Middle Class: Comprises incomes exceeding 200% of the median income.

What is the Middle Class Income in Each Canadian Province?

These are the middle class incomes in each province in Canada. 

What Salary is Considered Middle Class in Canada?

Determining what salary is considered middle class in Canada can vary depending on various factors such as location, family size, and cost of living. 

However, as a general guideline from Statistics Canada, individuals who earn between $53,359 to $106,717 annually are considered middle class in Canada.

Let’s take a look at what salaries are considered middle class and which are considered upper middle class in Canada, as well as the other income classes in Canada.

What is Upper Middle Class Income in Canada?

There is no universally agreed-upon definition of those within the upper middle class in Canada. However, it’s generally understood that to be considered part of the upper middle class, you would typically need an annual income of at least $106,000. On the high side, you might even need to have incomes reaching into the high six figures annually.

For most Canadian households, incomes from various sources such as salaries, investments, and Registered Retirement Savings Plans (RRSPs) contribute significantly to their financial standing, making them fall in the upper middle class income level. 

Typically, these households see their incomes increase as they progress towards retirement, aiming to achieve financial stability and comfort in later years.

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Final Thoughts on Middle Class Income in Canada

Defining middle class income in Canada isn’t just about crunching numbers; it’s about understanding the diverse perspectives that shape this classification. 

While this blog post and other sources offer insights, perceptions of the “middle class in Canada” vary widely. 

So, are you a middle class Canadian? Is it solely about income, or does social standing play a role for you? Reflecting on these questions can offer valuable insights into our understanding of socioeconomic dynamics in Canada.